SOURCE: iSIGN Media Solutions Inc.
TORONTO--(Marketwire - Oct 31, 2012) - iSIGN Media Solutions Inc. ("iSIGN" or "Company") (TSX VENTURE: ISD) (OTCQX: ISDSF), a leading provider of interactive mobile advertising solutions that serves advertisers, manufacturers, retailers and advertising agencies throughout North America, and Chinney Concepts Ltd. ("Chinney"), a wholly owned subsidiary of Chinney Alliance Group Limited, are pleased to announce their agreement of expanded terms and conditions contained within a detailed Letter of Intent ("LOI"), prepared and forwarded by Chinney's Canadian law firm, Blake, Cassels & Graydon LLP.
The final LOI outlines the intent of both parties to enter into a strategic licensing and business relationship that will result in an agreement granting Chinney certain exclusive rights relating to iSIGN's Smart Antenna, software and resulting metrics in the People's Republic of China, Hong Kong, Taiwan and Macao.
The intent is to define a five year licensing agreement to be finalized on or before April 30, 2013. This time frame will allow Chinney to complete their assessment and introduction of iSIGN's Smart Antenna to their client base, as well as for any required re-programming of the software and metrics required to suit their specific market needs. This agreement will include key elements that have been agreed to in the LOI, such as Chinney's payment for the manufacturing of all Smart Antenna hardware that is required, the sales and marketing of iSIGN's products in their agreed upon territories at their expense and the sharing of resulting metrics. Chinney will incorporate a Newco at their sole expense to handle the marketing and sales efforts and iSIGN has been granted the option to buy equity by converting licensing fees for shares for a given period of time at a fixed price to be determined.
iSIGN will support Chinney's efforts with ongoing technical support and training to maximize the capture and flow of data and metrics. Both companies are arranging to have the resulting data interpreted and analysed by an accredited independent third party to maximize revenue. Further details to be announced at a later date.
"This will be a major leap forward for us," said Alex Romanov, iSIGN's Chief Executive Officer. "Chinney is a large and well respected company that counts four of Asia's top convenience store chains, totaling approximately 39,000 outlets, among their many clients. The opportunities for us as a result of this relationship will be retail and brand promotion revenue, as well as revenue from the resulting data."
"This agreement gives us an opportunity to capture a major portion of the world's c-store channel," added Mr. Romanov. "We believe that this channel will be the first to receive the benefits offered by our proven Smart Antenna and software to retailers, advertisers and brands throughout Asia while providing significant opportunities to us for revenue from a marketplace (Asia) that we haven't previously incorporated into our projections. We are very pleased with the speed in which this LOI has come together, given that we only met and visited with the Chinney management, technical and sales teams in mid-September -- just one month ago. We are very confident that the final agreement will be completed by or before our next fiscal year-end."
About iSIGN Media
iSIGN Media is a North American leader in multiplatform advertising solutions that utilize Bluetooth, Mobile, WiFi and Location-Aware technologies to deliver rich media, permission-based messages to engage consumers more deeply and cost-effectively. The resulting business intelligence and real time metrics, gathered through iSIGN's patent-pending advertising platform, deliver insights into emerging consumer behaviors that help advertisers measure their efforts and make better business decisions to increase ROI and customer loyalty. Headquartered in Richmond Hill, Ontario, with R&D and customer support operations in Vancouver, BC and Tampa, FL, the Company has also grown to become the largest owner/operator of in-store digital media in Canada with 5,600 digital signs in 1,400 locations. Partners include: AOpen America Inc. and IBM, with solution distribution by BlueStar Inc. Additional information can be found at www.isignmedia.com.
Chinney is a limited liability company incorporated in Bermuda with its shares listed on The Stock Exchange of Hong Kong Limited. Chinney is an investment holding company. The principal activities of its subsidiaries comprise the trading of plastic and chemical products, provision of building related contracting services, provision of foundation piling works and sub-structure works, building construction works for both public and private sectors and others, which include distribution of aviation system and energy saving products and property holdings. Additional information can be found at http://chinneyalliancegroup.etnet.com.hk/.
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with iSIGN Media's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect iSIGN Media's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. iSIGN Media assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
© 2012 iSIGN Media Solutions Inc. All Rights Reserved. All other trademarks and trade names are the property of their respective owners.
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