AMPD Ventures Inc (CSE:AMPD, OTCQB:AMPDF) said it has signed a non-binding letter of intent (LOI) for the acquisition of a full-service studio with world-leading capabilities that range from virtual cinematography to animation services.
Under the LOI, AMPD will acquire 100% of the equity of the unnamed target company. If completed, the acquisition is expected to bring a well-established, profitable industry leader who has consistently delivered several million dollars in annual revenue into the group, as well as expand its offerings to the market with a range of complementary services.
“We are excited about this potential transaction and adding additional world-leading talent to the AMPD family as we continue to execute our business plan,” Anthony Brown, CEO of AMPD said in a statement
“Acquiring an established, profitable company that has numerous synergies with AMPD also creates a new opportunity for increased revenue and earnings growth," he added.
READ: AMPD Ventures closes second tranche of its non-brokered private placement for gross proceeds of C$1,188,742
The company said the acquisition will be funded through long-term low-cost debt and shares and is being supported by a major Canadian banking institution.
Completion of the acquisition is subject to the completion of due diligence by the relevant parties, the execution of the definitive transaction agreements, and other customary closing conditions, including any regulatory approvals. There can be no assurance that a definitive agreement will be entered into or that the proposed acquisition will be consummated, the company added.
AMPD Ventures is building the world’s best suite of tools and technologies for digital content creation and distribution.
Through its operating subsidiaries, AMPD Technologies Inc and Departure Lounge Inc, AMPD is advancing the way that digital content is created and consumed.
Contact the author at jon.hopkins@proactiveinvestors.com