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WirelessDevNet.com Press Release
Wireless Age to Acquire Function Mobile
Wireless Age Communications, Inc. announced today that it has agreed on the terms and conditions to acquire Function Mobile Inc. ("Function Mobile").
Function Mobile is a development stage company focused on incorporating mobile media into the everyday lives of consumers. With operations in several jurisdictions across North and South America, they create innovative media channels, marketing solutions and advertising opportunities for brands to interact with consumers anytime, anywhere.
Wireless Age has agreed, subject to various terms and conditions including regulatory and board of directors approval, to acquire a 100% interest in Function Mobile Inc. for 3,500,000 restricted common shares of Wireless Age and an earnout provision of 10% gross margin on CAD$1,000,000 and 20% on gross margin over $2,000,000 for a period of five years. As part of the transaction, the Company agreed to provide a 10% carried interest in the resulting new entity to certain shareholders of Function Mobile in the event Function Mobile is disposed of by way of a going public transaction, or to grant a 10% interest in Function Mobile prior to a private sale of the company.
In addition, a few members of Function Mobile's executive team, including their CEO/Founder Marc Askenasi, along with COO/Co-Founder Felix Gelt, will stay on with Wireless Age, for a minimum one-year period, to grow both Function Mobile's business and assist Wireless Age with their existing operations and identifying new opportunities.
Closing is subject to the completion of definitive documentation and necessary approvals but is scheduled to occur prior to fiscal year end.
John G. Simmonds, Wireless Age CEO stated: "We view this as an excellent opportunity to expand beyond our retail operations. Remaining invested in the mobile/wireless game we are now growing into the emerging mobile media, marketing and advertising markets. The ability to capitalize on both transactional and advertising revenue will prove to be a very lucrative industry and we look forward to doing so with Marc and his team."
Marc Askenasi, Function Mobile CEO/Founder stated: "As mobile handset functionality continues to increase, so too will consumer dependency for data related services. This coupled with the resources of Wireless Age and the successful track record of their management team, creates an opportunistic environment to fast track our growth initiatives and build upon our success."
About Wireless Age
Wireless Age Communications ( www.thewirelessage.com), through its 99.7% owned subsidiary, Wireless Age Communications Ltd., is in the business of operating retail cellular and telecommunications outlets in cities in western Canada. Through its other wholly owned subsidiary, Wireless Source Distribution Ltd., the company distributes two-way radio products and wireless accessories in Canada.
About Function Mobile
Function Mobile ( www.functionmobile.com) is currently positioned in the mobile space where it operates in Canada, Peru, and is in the process of expanding into Ecuador and other Central and South American markets. It is partnered with leading mobile application solution providers, aggregators, and distributes its mobile games through telecoms, advertising agencies and brands that use and offer its proprietary software and services.
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