ATLANTA, March 26, 2012 /PRNewswire/ -- iBrands Corp.
(OTC: IBRC) is pleased to announce it has received a Conditional
Commitment Letter from an undisclosed investment group intending to
provide the company with $10 million
USD. This funding is for the completion of the
company's acquisitions, software enhances for iMenu24/7 and working
capital. According to the company, all of the terms and fees
of the financing have been agreed upon. The company expects
to receive the first tranche of funding in the next 90-days.
"We have signed a non-disclosure agreement with the investment
group, so we are yet unable to identify this group," states
Paul Smith, CEO of iBrands. "We have
been working with representatives of this group for several months
and are excited that an investment group of this size and
reputation have determined our company is worthy of their
commitment." Mr. Smith further states, "It isn't easy raising
capital in this tough economy and competition for limited available
capital is fierce. The next step for the company is the completion
of a due diligence procedure followed by the development of
required closing documents."
Following the company's market test of iMenu24/7 (the company's
online ordering platform for restaurants), consisting of over 1.5
million orders process, it was determined that software
enhancements were required prior to a national and international
roll-out. This funding will provide the necessary resources
to complete these enhancements accompanied by a sizable marketing
budget. One of the software enhancements considered in the funding
is a mobile app for all platforms including the iPhone, Android,
Windows 7 and BlackBerry. The company further intends to
acquire some competitors thereby accelerating its market share.
"Statistically," states IBRC CEO, Paul
Smith, "our market demand speaks for itself." The North
American market consists of some 1.1 million restaurant locations
generating approximately $617 Billion
annually in sales serving more than 78 Billion meal occasions
annually. The National Restaurant Associations quotes that
58% of all restaurant patrons order food for off-premises
consumption (take-out). Further, according to the
National Restaurant Association, since 1985, take-out orders have
increased a staggering 75%. As well, orders placed online are, on
average, 20-30% higher than takeout orders placed over the phone.
Over 35% of consumers polled have or would place an order online if
their favorite restaurant offered the service.
According to a new Cornell University research study on "The
Current State of Online Food Ordering in the U.S. Restaurant
Industry, 2011" gives new insight into the value of online food
ordering for restaurants and their customers. The study of
372 U.S. restaurants of all sizes that accept takeout orders found
that 26.9% offered online ordering. For pizza companies, the
percentage was higher, at 48%.
In an interview with the study's author, professor
Sheryl E. Kimes of Cornell's School of Hotel Administration
(September 2011), Nation's Restaurant
News managing editor Alan J. Liddle
noted some surprising results. Contradicting claims frequently
cited by online ordering service providers, the restaurateurs in
the study noticed only slight increases in order size. Instead,
they noted a considerable increase in order frequency: "most
commonly for takeout orders (42.5%), but also for delivery (28.5%)
and catering (14.2%)."
The increase in overall sales through online ordering seemed to
come not from higher check averages, but from an overall increase
in volume. According to this study, "restaurants using online
ordering reported more frequent orders and increases in group and
catering orders because of the ease of placing an order."
Interestingly, in the restaurateurs' comments on the benefits of
online ordering, higher check averages and marketing benefits
ranked far below other factors such as labor savings and order
accuracy.
For Kimes, the most surprising find was the belief of many of the
restaurateurs who did not offer online ordering, that customers
prefer to talk to someone at the restaurant. In fact, Kimes says,
the consumers surveyed in this study, and in an earlier study in
this series on online ordering, clearly preferred not to talk with
staff at the restaurant. In fact, the primary reason consumers
chose online ordering over a phone call was because the web
interface gave them more control over the order process.
The Company has identified several potential acquisitions
meeting specific requirements: (a) niche brand with an identifiable
market sector; (b) underperforming due to lack of capital; (c)
substantial upside; (d) e-commerce component; and (e) strong
management vested for the long term. Our acquisition model is
based on industry multiples with a combination of stock and
cash.
The company previously traded on the OTCBB. On
December 5, 2005, the Company filed a
Form 15 to terminate its trading on the OTCBB. The Company is
"piggy-back" qualified to return to the OTCBB/QB once it files its
last 2 years audits. We are intending to elevate to the OTCQB
as quickly as possible following the closing of our funding.
About iBrands Corporation
iBRANDS CORPORATION ("IBRC"), www.ibrandscorp.com, is a
publicly traded holding company that acquires and operates niche
market brands having unique market positioning with substantial
upside. Our strategy is executed through the acquisition of
proprietary brands having unique market niches with substantial
upside growth and providing strong management. A common
thread throughout our acquisitions is the application of Internet
technology to enhance revenues and optimize margins.
SAFE HARBOR STATEMENT: Except for historical information
contained herein, the statements in this release are
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Reform Act of 1995.
Forward-looking statements involve known and unknown risks and
uncertainties, which may cause a company's actual results in the
future to differ materially from forecasted results. These risks
and uncertainties include, among other things, product price
volatility, product demand, market competition and risk inherent in
the operations of a company.
Contact:
iBrands Corporation
Investor Relations
Paul Smith, 1-866-595-1081
info@ibrandscorp.com
SOURCE iBrands Corporation