Intouch Insight Ltd. Closes SeeLevel HX Acquisition
By: Sarah Beckett October 1, 2021
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S NEWS WIRE SERVICES
OTTAWA, October 1, 2021 – Intouch Insight Ltd., (Intouch or the Company) (TSXV: INX) (OTCQX: INXSF) today announces it has closed the acquisition (Acquisition) of Mystery Researchers, LLC dba SeeLevel HX (SeeLevel), subject to TSX Venture Exchange acceptance. SeeLevel is a US customer experience measurement company who has provided services across the US since 2008. The definitive agreement was signed on September 24, 2021 (see press release dated September 24, 2021).
SeeLevel had calendar 2019 annual recurring revenues of US$5,048,485, gross margin of 39%, compared to Intouch historical margins of 52%, and the transaction is arm’s length from Intouch. The purchase price for the acquisition is a combination of US$2,725,000 in cash of which, US$1,600,000 is payable at closing and up to US$1,125,000 is payable over the next two years based on achievement of revenue targets, and the issuance 1,500,000 Intouch common shares at CA$0.66 per share. The common shares issued have a statutory hold period of four months and one day from the date of issuance. Intouch plans to finance the Acquisition from existing cash resources and with a possible five-year term bank loan for US$1,600,000. No finder’s fees are payable by Intouch.
The offered securities will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of Intouch in the United States.
About Intouch Insight
Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Through its flagship SaaS product, LiaCX®, Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions. For more information, visit intouchinsight.com.
Certain statements included in this news release contain forward looking statements that are made of the date hereof, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company’s current views with respect to future events, including the acquisition, bank financing, future revenues and references to the Company’s expansion and growth of the business and operations, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties. Please refer to the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents that can be found on SEDAR at www.sedar.com. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Chief Financial Officer