April 25, 2016 08:30 EST
DeepMarkit Financing, Final Activities for Launch, Business Update
Not for distribution in the United States or through United States Wire Services
April 25, 2016, DeepMarkit Corp. (“DeepMarkit” or the “Company”) (TSX-V:MKT) is pleased to provide an update on the development and pre-launch activities and of its SaaS game-based promotions business. The business includes a self-service platform for the creation, customization and delivery of promotional campaigns for businesses of all types and sizes.
DeepMarkit’s platform, called “FetchBot”™, offers an exciting, new way for businesses of all sizes to give away coupons, draw prizes and promotional products. Each FetchBot™ promotion includes one of many styles of online game, and a responsive promo-site.
What makes FetchBot™ unique is that it gives businesses the capability to create fully branded games in minutes using a self-serve platform. Consumers will enjoy it because promotions are entertaining regardless of whether they win a prize. Businesses will benefit from it because FetchBot™’s back-end collects players’ demographic data and sales leads. Social media integration further adds to the effectiveness of the FetchBot™ platform.
The Company is targeting June 2016 for the initial launch of FetchBot™, and accordingly, in order to fund the final commercialization phase of development and the marketing launch of the product, DeepMarkit announces a non-brokered private placement of up to $1,300,000 (the “Private Placement”). Under the Private Placement, which is subject to acceptance by the TSX Venture Exchange, DeepMarkit intends to issue, pursuant to applicable exemptions from prospectus requirements of Canadian and United States securities laws, 10,000,000 Units (the “Units”) at a price of CAD $0.13 per Unit. Each Unit is comprised of one common share and one common share purchase warrant (each a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of DeepMarkit at an exercise price of CAD $0.25 for a period of eighteen (18) months from the date of issuance of the Units.
DeepMarkit may pay a finder’s fee to eligible finders in connection with the issue and sale of any or all of the Units under the Private Placement. The finder’s fee shall consist of a cash payment of no more than 8% of the gross proceeds raised from subscribers whose subscriptions are accepted by the Corporation and were introduced by the applicable finder(s). Finders warrants of up to 8% of the number of Units subscribed may also be issued to eligible finders. The finders warrants will be exercisable at $0.25 per share and will have a one (1) year term.
The net proceeds from the Private Placement will be used to fund the final phase of development of FetchBot™ and for marketing purposes.
As part of our ongoing strategic initiatives, the Company recently completed its first application for non-dilutive (government grant) financing to broaden and expedite: our international sales and marketing activities, and the acquisition and development of additional specialized content and premium customer solutions. While there is no assurance that any grant financing will be received, the Company plans to file additional grant applications (both federally and provincially) since our business areas of focus – technology, gamification software and the digital economy, align with stated government policy objectives. Finally, the Company is pleased to announce that it has retained Borden Ladner Gervais LLP, a well-respected Canadian national law firm, to assist the Company with our information technology/intellectual property corporate development strategies.
The FetchBot™ platform solves the fundamental marketing problems of making promotions genuinely entertaining, engaging with customers in meaningful ways and creating custom promotions on a tight budget.
The digital ad SaaS and self-serve models have revolutionized online business and represent the potential for multi-billion dollar revenues and high-growth patterns. DeepMarkit is aiming to strategically position its FetchBot™ brand in the mid-market (between large global brands and small local businesses) where the demand for a gamified solution is expected to be the strongest.
About the Company
DeepMarkit is a technology company that provides entertaining promotional tools, allowing online marketers and business operators to attract customers through online games. DeepMarkit’s FetchBot™ platform makes it easy for any business to create game-based promotions. The platform includes a full range of customization features that allow merchants to not only engage their customers and sell more product, but also increase their customer base and build powerful appealing brand awareness.
FetchBot™ is designed to promote brand awareness, drive lead generation and data acquisition, reward loyalty and generate sales for businesses with physical and/or an online presence.
For more information, please contact:
President & CEO
Darold H. Parken
Exec. VP Corporate Development
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
There can be no assurance that the products being developed by the Company, including the FetchbotTM Platform will be completed as presently planned, or that, if completed, such products will be accepted in the marketplace. Similarly, there is no assurance that the proposed private placement will be completed or that any government grant financing will be received. Trading in the securities of the Company should be considered highly speculative.
The forward-looking statements contained in this press release are made as of the date of this press release, and DeepMarkit does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.