VANCOUVER, BC, July 13, 2023 /CNW/ – Datable Technology Corporation (TSXV: DAC) (OTC Pink: TTMZF) (the “Company” or “Datable” or “DTC”), the developer of a proprietary, Software-as-a-Service (“SaaS”)-based Consumer Lifecycle and Data Management Platform called PLATFORM3, provides the following update on operations and the letter of intent (the “LOI”) to sell its SaaS business to Local Marketing Solutions Group, Inc.(“LMSG”) as set out in the press release dated June 16, 2023.
“Despite the challenges of the past several years, we have renewed 100 percent of our long-term SaaS licenses with major enterprise customers and have a number of new large enterprises customers in our sales pipeline,” said Rob Craig, CEO of Datable. “In Q1 of 2023, as we prepare to sell our SaaS business to LMSG, we cut expenses by 50% while maintaining revenues at the same levels as last year. With access to LMSG’s U.S. based sales team and infrastructure, Datable can scale its high-margin SaaS business while owning shares in LMSG, a much larger and profitable company.”
Under the LOI, LMSG will acquire Datable’s SaaS business in return for 15% equity ownership in LMSG. The LOI sets the value of LMSG at $19.7 million, equal to approximately one times LMSG’s 2023 revenues, such that Datable’s 15% ownership of LMSG post acquisition will have a deemed value of approximately $3.5 million.Â
Datable and LMSG are making good progress on mutual due diligence and finalizing the definitive agreement, which is expected to be signed prior to July 31, 2023. Concurrently, Datable and LMSG are in discussions to raise capital to support the acquisition and accelerate growth of the combined company.As of the date of this news release, Datable has agreements, which together with license agreements signed in prior periods amount to approximately $3.6 million in revenue under contract for 2023 and future periods, of which 56% is expected to be recognized as revenue in 2023. This includes approximately $3.2 million in contracted revenues and close to $0.4 million in expected program fees from customers. Datable expects gross margin to be between 40% and 50% in 2023, depending on product mix and an increase and expected improvements in operational efficiency.Due to the continued cost-cutting and improved operational total operating expenses are expected to be reduced by approximately 50% for the year ended December 31, 2023, compared to the same period in 2022.
Datable will provide ongoing updates as it makes progress on the proposed sale of its SaaS business to LMSG.
Datable has developed PLATFORM3Â a proprietary Consumer Lifecycle and Data Management Platform that is sold to global consumer brands. PLATFORM3 is delivered as a subscription service (Software as a Service model) and used by some of the worlds’ most valuable consumer brands to access new consumer communities and engage them while collecting, analyzing, and managing their first-party data. PLATFORM3Â incorporates proprietary technology to monetize the consumer data, including demographics and purchasing behaviour, by sending consumers targeted offers by email and text messages. For more information, visit datablecorp.com.
For additional information about the company please visit www.sedar.com. The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. Neither 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 release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds and the results of financing efforts, – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Datable Technology Corp.