Everfront Ventures Corp. (the “Company” or “Everfront”) (TSXV:EVC) is pleased to announce that the Company has entered into a definitive purchase agreement (the “Purchase Agreement”) to acquire, 9172-8766 Québec Inc. (doing business as Nexalogy Environics) (“Nexalogy”), a business intelligence and data analysis provider through its artificial intelligence (“AI”) platform to government agencies and Fortune 500 corporations (the “Transaction”). Further details were announced in the Company’s press release dated July, 4, 2017.

“We are excited to have Nexalogy join our team,” said Andrew Ryu, CEO and Chairman of the Company.  “The acquisition of Nexalogy is a key strategic step for the Company.  The vertical integration of Nexalogy will play an important role in our ability to further develop our technological platform with enhanced artificial intelligence (“AI”) capabilities and to significantly expand our presence in the retail and public sector markets.” 

Details of the Transaction and Conditions to Closing

Pursuant to the Purchase Agreement, Everfront will acquire all of the issued and outstanding common shares of Nexalogy and of 9225-6965 Québec Inc., an affiliate of Nexalogy, for an aggregate purchase price of $6 million (subject to debt adjustments at closing) of which: (i) $2.7 million in cash and $2.7 million in common shares of the Company (priced at a volume weighted average price of the common shares of the Company for the twenty (20) trading day period prior to closing) will be paid on closing; and (ii) $600,000 will be paid over a three year period upon Nexalogy achieving certain agreed-upon revenue milestones.  The Transaction is anticipated to close on or about November 20, 2017.   

The completion of the Transaction remains subject to a number of terms and conditions including, among other things:

  • Everfront and Nexalogy obtaining all necessary consents, orders and regulatory approvals, including the final approval of the TSX Venture Exchange which has granted conditional approval
  • no material change occurring to the business of Everfront or Nexalogy;
  • the delivery by each of the parties of standard closing documents.

Nexalogy Business

Nexalogy’s patented solutions provide valuable insight and analysis from a variety of data sources, giving governments and corporations a unique tool to analyze information and make informed decisions in the following areas; policy making, stakeholder analysis, social risk assessment, social license to operate, marketing, and overall operations. Nexalogy’s proprietary algorithms, when merged with traditional business intelligence, provide an innovative platform leveraging machine learning, social data intelligence and social Internet of Things (“IOT”) technology to redefine data analysis. Nexalogy has key government agencies and corporations as clients and is poised for significant growth.

Nexalogy is emerging as a leader in the Business Intelligence (“BI”) marketplace with a strong focus in social data analysis. According to “Markets and Markets”, a flagship competitive intelligence and market research firm serving 1700 global fortune enterprises, the Social Media Analytics Market is forecast to grow to 5.4 Billion USD by 2020. This rapid growth is due to the transition from traditional BI techniques to advanced analytics as well as the surge in the number of social media users and data.

Everfront plans to continue developing machine learning models for conversational user interfaces. A unique feature set will leverage the newest technologies with an artificial intelligence (“AI”) offering that will provide government agencies key solutions to manage initiatives that are integral to countries across the world as well as to provide a unique offering in areas like the retail market. The Company intends to offer retailers a robust data analysis platform through the combination of its DataTap solution, which captures valuable Point of Sale (“POS”) information, and Nexalogy’s proprietary software.  The combined technology will provide users competitive insight that Everfront believes will become dominant in the retail BI marketplace for years to come.

About Nexalogy

Founded in 2006, Nexalogy unlocks valuable insight from social media data. Through its proprietary semantic clustering algorithms, it detects weak signals in unstructured text that are not distinguished through traditional business intelligence technology. This technology makes data more relevant and is the missing link in providing actionable, social media intelligence to governments and organizations all over the world. Further information about Nexalogy can be found at www.nexalogy.com.

About the Company

Everfront is the publicly traded holding company of Datametrex Limited (“Datametrex”).  Datametrex offers a plug and play solution for vendors. The Company extends the life of POS terminals without having to upgrade to new cloud-based devices through its DataTap technology. DataTap captures all data sent from the POS to the receipt printer and then sends it to the cloud, so it can be presented in a dashboard for management to monitor key pertinent information.

To learn more about the Company, visit: www.datametrex.com.

For further information, please contact:

Jeffrey Stevens – President & COOPhone:   (647) 400-8494Email:     jstevens@datametrex.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only the Company`s and Nexalogy`s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s and Nexalogy`s control.

Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”.

The forward-looking information contained herein includes, but is not limited to, information with respect to prospective financial performance, anticipated capital funding and sources, proposed or potential acquisitions, estimated operating and sales costs, estimated market drivers and demand, business prospects and strategy, new markets for growth and financial position. By identifying such information and statements in this manner, the Company and Nexalogy are alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company or Nexalogy to be materially different from those expressed or implied by such information and statements.

Although the Company and Nexalogy believe that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release.

The forward-looking information contained in this press release is made as of the date hereof, and the Company does not undertake to update any forward-looking information that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in its entirety by this notice.