Marble Financial Inc. (CSE:MRBL, OTC:MRBLF) has provided an update on its binding letter of intent to acquire eBunch Data and Development Limited, a Canadian digital marketing firm specializing in generating more qualified leads per dollar spent by retailers.
Marble said that on completing the technical, operational and financial due diligence of eBunch Data and Development, both firms have agreed to revised commercial terms relating to the sale of certain assets comprising the vendor’s business to Marble.
According to the company, Marble’s wholly owned subsidiary Accumulate.AI Software Limited will acquire certain technology assets relating to eBunch Data’s inventory management system for auto dealerships and related assets following an Asset Purchase Definitive Agreement for up to C$550,000.
READ: Marble Financial signs binding letter of intent to acquire eBunch Data and Development
The purchase price to be paid by Marble includes C$125,000 on closing, and an earn-out of up to C$425,000 of the net income of the acquired vendor's business realized during the eight successive quarterly financial reporting periods following the closing date.
Subject to regulatory approval, the earn-out will be paid in the form of common shares of Marble issued from its treasury, calculated based on the volume weighted average closing trading price (VWAP) of Marble common shares on the Canadian Securities Exchange for the five prior trading days ending three trading days prior to the end of each financial quarter.
The earn-out shall cease if the net income of the vendor's business is negative for two successive fiscal quarters during the earn-out period, noted the company.
Marble revealed that eBunch CEO Paul Lehal and the CTO of Konect.ai., will enter into a consulting agreement with the company and oversee the integration of Marble's Connect API with Konect.ai's 52 car dealer partnerships in Canada and 200 plus car dealer partnerships in the United States, which forms part of Marble's future expansion plans.
Lehal will remain employed by the vendor as Marble will not acquire the Konect.ai. business.
The transaction is subject to regulatory and corporate approvals and is expected to close on or before September 30 this year.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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