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.
- 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.
About Datable Technology
Corporation
Datable has developed PLATFORM3 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.
PLATFORM3 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.
