For Immediate Release
Waterloo, Ontario, February 4, 2015: SponsorsOne Inc. (CSE: SPO), (“SponsorsOne” or the Company”), the Company that has developed the SponsorsCloudTM platform, is pleased to announce it has entered into a definitive term sheet to acquire 100% of the assets of JWALK NY LLC (“JWALK”), one of the leading full service creative agencies in the USA. JWALK has distinguished itself as a sought-after partner for its nimble and creative solutions to clients’ business problems. JWALK specializes in culturally connecting lifestyle brands with consumers and has an industry focus on retail/fashion, beauty, hospitality, spirits and Consumer Packaged Goods.
“We are very excited about the acquisition of JWALK,” stated Myles Bartholomew, Founder and CEO of SponsorsOne. “The JWALK team has operational management excellence, a host of top 100 brands as clients, full digital creative services, and a proven track record of build- ing a strong agency both organically and through acquisition.”
SponsorsOne now enters the commercialization stage with the execution of its acquisition strategy. Adding talent to the Company from the management team of JWALK will acceler- ate the adoption of the SponsorsCloud using JWALK’s brand relationships to integrate SPO’s social sponsorship technology into existing marketing initiatives. The competitive advantage of social sponsorship blended with the traditional digital marketing approach should deliver a higher ROI for the brands. This technology advantage reshapes the earnings model of a creative agency from a labor based – contract-to-contract model – to a recurring revenue, high earnings model that should improve brand retention year over year. Over its existence, JWALK’s client base has represented some of the top 100 women’s lifestyle brands globally such as Lacoste USA, bebe, bareEscentuals and Gucci, along with clients such as Microsoft, Equinox and Samsung.
“We have consistently focused on delivering a superior ROI to our clients resulting in a steady annual growth rate within our customer base”, stated Doug Jacob, Founder of JWALK. “We believe adding a strategic and proprietary technology to the overall offering will continue to drive higher ROI to our clients and give us a strategic advantage when deal- ing with our brands. As technology has become a part of everyday life, the retail and cus- tomer acquisition environment has become more and more competitive for brands. We feel
SponsorsOne”s technology offers an innovative solution for our brands to interact with their customers through social media on a verifiable basis providing rather than simply advertising to them, giving them with a competitive advantage.”
The JWALK team will lead the build up of the sales and service delivery organization for SponsorsOne and will manage the roll out of the SponsorsCloudTM platform and social spon- sorship product to future and existing clients in 2015. As social sponsorship becomes a larger component of the brand’s overall marketing campaigns, it is anticipated that the earnings of a full service creative agency will increase based on strong recurring revenue. The proposed transaction provides that SponsorsOne will acquire 100% of the assets of JWALK for USD$6 million, in a combination of cash and common shares of the Company .
The acquisition is scheduled to close March 30, 2015 and is subject to financing, regulatory approval, and the completion of due diligence and definitive agreements.
About JWALK NY LLC
Founded in 2010, JWALK is a full service creative agency focused on lifestyle-driven brands within the fashion/retail, beauty, hospitality, spirits and COG sectors. With offices in NYC and LA, JWALK capabilities include:
360 Advertising
Digital
TV/Commercials
Brand Strategy
Branding
Experimental
Culture
Access
Social
Content Creation
Connection
About SponsorsOne (CSE: SPO)
SponsorsOne is positioned to become the leader in the next evolution of digital marketing, enabling one-to-one, authentic engagement between brands, influencers and their online enthusiasts through social sponsorship and commerce. With the SponsorsCloudTM platform, brands and influencers can identify and sponsor their fans. SponsorsOne is the creator of a proprietary social sponsorship currency that gives consumers real compensation for their authentic social media engagement (blogs, videos, tweets, pins and posts). With SponsorsCloud™ and the social sponsorship currency, the Company is building the engine to change and drive the social economy.
ON BEHALF OF THE BOARD
“Gary Bartholomew”
Gary Bartholomew, Executive Chairman
To learn how to get your online enthusiasts working for you, visit https://sponsorsone.com
For more information, please contact: Investor Relations at SponsorsOne Email: info@sponsorsone.com
Twitter: @SponsorsOne
The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this press release.
Forward-Looking Statements
This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this news release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology, are intended to identify forward-looking statements and information. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with marketing and sale of securities; the need for additional financing requirements and access to capital, reliance on key personnel; the potential for conflicts of interest among certain officers or directors with certain other projects; the volatility of the volume and price of the Common Shares, the failure of the business strategy, the integrity of the Company’s patents and proprietary intellectual property and competition. The Company cautions that the foregoing list of risk factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events, including the risk factors set out in the Company’s Listing Statement. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events.
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