Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) Corporation said it has entered into a binding letter of intent (LOI) to purchase all of the assets of EAFdigital, an online Software-as-a-Service (SaaS)-based artificial intelligence-driven automobile shopping and delivery platform.
EAFdigital, a fintech-focused solution provider that integrates a wide range of services including agency marketing, information architecture and mining, content creation and design, and lead generation organized to capture, convert and close purchases of automobiles, will become a wholly-owned subsidiary of Xigem, the company said.
EAFdigital also leverages online social media and data science platforms as well as its proprietary artificial intelligence platform EAFAIT, according to Xigem.
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Xigem CEO Brian Kalish said the acquisition of EAFdigital could allow the company to leverage new markets while adding accretive income, positioning Xigem to further support the best interests of its shareholders.
"Like most other sectors, the automotive industry has seen a significant portion of consumer activity shift to online and remote channels,” he commented in a statement. “The EAFdigital team has in a short period of time built a unique, proprietary and profitable technology that captures, converts and guides consumers through the entire purchasing process."
Transaction details
Under the terms of the LOI, Xigem said it will purchase EAFdigital for a yet-to-be-determined value, satisfied by shares of the company. The value will be determined upon completion of diligence in advance of signing a definitive agreement.
The total number of shares issued to the vendors of EAFdigital shall not exceed 45% of the issued and outstanding shares of the company to be issued to the vendors by the company upon closing of the transaction, Xigem added.
Further, a finder’s fee equal to approximately 10% of the value of the transaction will be payable to an arm’s-length party which will be satisfied upon closing through the issuance of additional common shares of the company.
The transaction is expected to close in January 2023.
Established in Toronto, Canada, Xigem is positioned to become a leading technology provider for the emerging near trillion-dollar remote economy, with software capable of improving capacity, productivity, and overall remote operations for businesses, consumers, and other organizations.
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