Ellipsiz Communications Announces First Initiative in Its North American Growth Strategy Via Acquisition of Open Decisions Inc., - Also Announces Appointment of Greg Wade to Advisory Board and Terminates Previous Announced Financing
Toronto, Ontario (FSCwire) - Ellipsiz Communications Ltd. (formerly NXA Inc.) (TSXV: ECT) (the “Company” or “ECL”) announced today that it has entered into an agreement to acquire all of the issued and outstanding shares of Open Decisions Inc. (“Open Decisions”) for total consideration of $848,000. Open Decisions is a corporation based in Markham, Ontario, with demonstrated expertise and a track record in providing IT products to customers in North America since 2009, including products in the telecommunications field. The Company will pay $398,000 in cash and issue 9,000,000 common shares of Ellipsiz at a price of $0.05 per share. The securities issued pursuant to this acquisition are subject to a four month hold period. The transaction is anticipated to close by June 30, 2018 subject to obtaining final approval from the board of directors.
Sam Tan, CEO and Chairman of Ellipsiz, said, “This acquisition is a significant strategic advancement for the Company. Ellipsiz’s’s subsidiary in Taiwan and Open Decisions have similarities and complementary strengths in their businesses that willpromote increased operating efficiencies and produce significant synergies. Most importantly, the geographical coverage of the Company’s services will be immediately and dramatically expanded to cover North America through leveraging the resources and relationships of Open Decisions. This is the first step in our ongoing North American expansion and we look forward to making further new announcements soon.”
Mr. Benjamin Liang, currently CEO of Open Decisions, and part of the current team at Open Decisions, will continue their services and will work as part of the Company’s team to develop and execute strategies formulated by the Company.
The acquisition and arrangement with Mr. Benjamin Liang is subject to acceptance by the TSX Venture Exchange.
The Company also wishes to announce that Mr. Greg Wade has agreed to join ECL’s advisory board. Mr. Wade has over 28 years of experience as a technology executive and Chief Digital Officer. He was the Vice President- Enterprise Business of Samsung Electronics and Senior Vice-President & Regional Managing Director – Asia Pacific of BlackBerry. The Company anticipates that Mr. Wade will be able to provide strategic advice for the development of its business.
Finally, the Company wishes to announced that it has terminated its previously announced (see Press Release dated March 1, 2018) financing.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Eric Chan, CFO
T: 416 977-3223
Investor Relations
Andreas Curkovic, Proconsul Capital
416-577-9927
To view the original release, please click here
Source: Ellipsiz Communications Ltd. (TSX Venture:ECT)
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