Perk Labs Inc. (CSE:PERK, OTCQB:PKLBF) has updated on its previously announced deal to combine with tech group GetIt Technologies Inc to create a leading provider of delivery and digital ordering solutions with a presence in four major Canadian cities, saying it has now inked a binding letter of intent (LOI).
"We plan to sign the definitive agreement later this month, at which point, further information about the transaction and our plans will be released," said Jonathan Hoyles, the CEO of Perk.
Ryan Hardy, CEO of Getit, added: "Perk has developed valuable technology solutions, and we are excited to bring our own expertise to the table as we join forces. This merger will bring together the best of both worlds and allow us to deliver even more value to our users, customers, business partners and shareholders."
As reported in December 2022, under the proposed transaction, Perk will acquire 100% of the outstanding shares of GetIt pursuant to a share exchange and Perk will change its name and rebrand as "GetIt Local".
READ: Perk Labs poised for merger with GetIt Technologies to create leading provider of delivery and digital ordering solutions
CEO of GetIt Hardy will be appointed as CEO, President, or another position of senior management, while Hoyles will remain with the company as in-house legal counsel or another position of senior management.
Patrick Power, chairman and president of James Edward Capital Corporation, an Ottawa-based boutique investment bank focused on emerging growth companies, has also been appointed to Perk Labs' board of directors, effective immediately.
"The board of directors and I are excited to welcome Patrick to the company. His experience will be hugely valuable to our board and the company moving forward as it executes on its M&A strategy," said Hoyles in today's statement.
Getit is a mobile application tech firm, which specializes in supporting small to medium-sized businesses and the goal of the combined entity is to build an integrated organization that delivers intelligent digital solutions to small and medium-sized businesses across Canada and beyond.
By leveraging the expertise and resources of both Perk and Getit, it will be well-positioned to drive growth and innovation.
Perk Labs also announced in the statement that it was extending the closing date of its private placement offering of debenture units at C$10,000 per unit, for gross proceeds of up to C$500,000.
Each debenture unit consists of a 15% unsecured convertible debenture of the company in the principal amount of $10,000, and 200,000 common share purchase warrants.
The company aims to close the placing before January 31, 2023, unless further extended. A finder's fee may be payable.
Perk Labs Inc. (CSE:PERK, OTCQB:PKLBF)owns Perk Hero, the digital franchise company helping businesses transition to the digital economy.
Contact the writer at giles@proactiveinvestors.com