TORONTO, ON & NEW YORK, NY / ACCESSWIRE / May 26, 2015 / Intertainment Media Inc. (TSXV: INT) (PINKSHEETS: ITMTF) (I4T.F) ("Intertainment" or "Company") is pleased to announce that it has signed a non-binding letter of intent with its language technology and services partner Yappn Corp. (OTCQB:YPPN) ("Yappn") pursuant to which Yappn has offered to purchase key assets of Ortsbo Inc. including US Patent No. 8,983,850 B2, proprietary language services technology assets, know how related to Ecommerce and Customer Care and business contracts for a total purchase price of US $17 Million. The terms of the agreement include the transfer of up to US $1 Million in debt and US $16 Million in Yappn equity. The transaction and terms are subject to the execution of definitive agreements between the parties and both parties will be required to obtain all necessary approvals, including shareholder approval, if required, and the approval of the TSX Venture Exchange.
Under the Services Agreement, as subsequently amended October 24, 2013, between Yappn, Intertainment and Intertainment's Ortsbo subsidiaries (Ortsbo, Inc., a corporation organized under the laws of Canada ("Ortsbo Canada"), and Ortsbo USA, Inc., a Delaware corporation ("Ortsbo USA" and, collectively with Ortsbo Canada, "Ortsbo"), Yappn was granted the first right of refusal to purchase the Ortsbo platform and all its assets and operations for a period of two years from the date of the amendment.
Yappn is negotiating for the purchase of the aforementioned assets along with a concurrent preferred share financing of up to a maximum of US $6 Million, supported by its secured line of credit holders, and has executed a non-binding letter of intent with Winterberry Investments Inc. a private company, led by Mr. David Berry, to facilitate this transaction. As part of the transaction, Intertainment will be seeking to retire certain Ortsbo related financing obligations and minority shareholder interests.
In the past several months, Intertainment has branded TranzActive to work with firms seeking to enable language services programs outside of Yappn's current arrangement, including exclusivity pertaining to social media, however with the currently proposed transaction, all these language services related programs will transfer to Yappn. TranzActive will focus on assisting companies seeking development, capitalization and public market programs, providing fee-based consulting services, in cash and equities, to enable emerging Internet and Clean-tech companies to navigate growth programs and opportunities.
"Intertainment remains focused on the incubation of technology assets and this transaction is in line with our strategy to build and develop programs and then create an effective exit strategy," said Mr. Anthony R. Pearlman, President & COO of Intertainment Media Inc. "The relationship with Winterberry and Yappn is key to Intertainment as these will provide an opportunity to create long term value."
About Intertainment - www.intertainmentmedia.com
Intertainment is one of Canada's leading technology incubators and is focused on developing, nurturing and investing in both North American and global technologies and companies that provide technology solutions for brands and consumers alike. Intertainment also owns and operates a number of key properties and has investments in leading edge technologies and social media platforms, including TranzActive, CapThat, theAudience, Lexifone and Yappn Corp (www.yappn.com) (OTCQB:YPPN). For more information on Intertainment and its properties, please visit www.intertainmentmedia.com
Intertainment is headquartered in the Toronto, Canada region, with offices in New York and Los Angeles, CA and is listed on the TSX Venture Exchange under the symbol "INT" (TSXV:INT) and in the US under the symbol "ITMTF". Intertainment is also traded in Europe on the Open Market (Regulate Unofficial Market) of the Frankfurt Exchange under the symbol "I4T".
Contact
Mr. Anthony R. Pearlman, COO
info@intertainmentmedia.com
Forward Looking Information
This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law.
Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.
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SOURCE: Intertainment Media Inc.
