KSIX Media Holdings Enters Into Letter-of-Intent to Acquire True Wireless, LLC.
October 26 2016 - 8:30AM
Marketwired
KSIX Media Holdings Enters Into Letter-of-Intent to Acquire True
Wireless, LLC.
LAS VEGAS, NV-(Marketwired - Oct 26, 2016) - KSIX Media
Holdings, Inc. ("KSIX" and/or "Company") (OTC PINK: KSIX), a Las
Vegas, Nevada-based publicly traded company under the ticker symbol
KSIX on the OTC, has entered into a Letter of Intent (the "LOI")
for a $24 million acquisition of telecommunications company True
Wireless, LLC - an Oklahoma Limited Liability Company. The LOI in
connection with the proposed acquisition includes all the assets of
True Wireless, LLC.
"We are excited about the opportunities presented by combining
the assets and operations of True Wireless with the capabilities of
KSIX," said Carter Matzinger, CEO of KSIX. "True Wireless is a
current client of ours and we believe it's a fantastic acquisition.
Together we'll be able to capture multiple revenue synergies and
significantly expand the True Wireless subscriber base. Taking our
talents and marketing our own asset is an exciting development for
Ksix. We have always been marketing other companies' services and
now it's time for us to market our own company. Our ultimate goal
is to become one of the leading Lifeline providers in the US, and
the first and only 100% automated and completely online compliant
Lifeline provider."
The transaction features an investment structure and set of
terms that offer the current equity owners an opportunity to
realize immediate liquidity as well as allow existing management a
meaningful opportunity to participate the upside potential of the
new combined entity.
Based on True Wireless trailing nine-month revenues of
approximately $8.75 million and net income of approximately $2.4
million during the same period. KSIX will assume all debts and all
existing contingent liabilities. The tentative deal terms are made
up of three components:
1) Cash payment of up to $6 million through a debt instrument 2)
A promissory note of $6 million 3) The issuance of common stock in
KSIX totaling 24 million of shares of common stock.
Following the closing of this transaction, KSIX intends to fully
integrate the management of True Wireless and keep the company as a
wholly owned subsidiary going forward and will retain key True
Wireless management positions. The new combined headquarters will
operate out of the existing KSIX facility in Las Vegas, NV. The
management anticipates having approximately 75 million shares
outstanding post close of the transaction.
ABOUT KSIX MEDIA HOLDINGS KSIX Media Holdings, Inc. (OTC PINK:
KSIX) is an SEC fully reporting media and Internet company located
in Las Vegas, Nevada. Currently, there are three divisions, KSIX,
LLC, DigitizeIQ, LLC and Blvd Media Group, LLC, and KSIX, LLC is a
digital advertising network utilizing proprietary technology and
intellectual properties designed to create revenue streams for
their affiliate clients and to provide advertisers with increased
measurable audience. KSIX provides performance-based marketing
solutions to drive traffic and conversions within a Cost-Per-Action
("CPA") business model. KSIX has an online advertising network that
works directly with advertisers and other networks to promote
advertiser campaigns. KSIX manages offer tracking, reporting, and
distribution on the third-party platform.
ABOUT TRUE WIRELESS True Wireless is an eligible
telecommunications carrier ("ETC") providing discounted and
subsidized wireless (cell phone) service. True Wireless was founded
in 2008 to provide Lifeline assisted wireless services to eligible
Americans in 5 states: Texas, Oklahoma, Arkansas, Maryland, and
Rhode Island. True Wireless utilizes all 4 major wireless carrier
networks to assist those who qualify for the Federal Lifeline
Program. Customers are able to choose from a wide variety of
phones.
In an effort to keep investors informed and up to date the
company may also provide information on Facebook, Twitter and
InvestorTownHall.com.
Contact Information
Contact: KSIX Media Holdings, Inc. info@ksix.com Investor
Contact OmniVance Advisors Daniel Wong PR@ksix.com 858-381-5740