FOBI AI Inc., a provider of real-time data analytics through artificial intelligence, has announced the receipt of TSX Venture Exchange approval and the completion on October 13, 2021, of the acquisition of online coupon and advertising platform Qples Inc.
The deal gives the Vancouver-based technology company control over a connected retail commerce solution that has relationships to some major consumer packaged goods brands.
Qples’ technology will be integrated into FOBI’s connected retail commerce solutions and the Fobi Data Exchange.
The business is cash flow positive and expected to generate around US$1 million in 2021 revenue, and on track to hit $2 million in 2022.
READ: Fobi AI inks US$3.2M deal to acquire online coupon platform Qples
For the acquisition of certain assets and liabilities, FOBI will pay Qples US$3.2 million, of that US$2,120 will be in cash and the remainder of the purchase price in shares through the issuance of 1,222,551 common shares.
Qples also can earn up to a US$1 million earn-out that will be calculated based on the revenue derived from the assets purchased from Qples over the period from January 1, 2022, to December 31, 2022. Under the earn-out, Qples can earn US$500,000 in shares if the asset-derived revenue meets or exceeds US$1.6 million during the earn-out period or can earn US$1 million in shares if it meets or exceeds US$3.2 million during the period.
FOBI will also loan US$294,405.28 to Qples for it to repay an outstanding loan with the United States Small Business Administration. The loan will be repaid to FOBI, in whole or in part, under the terms of the asset purchase agreement.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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