WASHINGTON, DISTRICT OF COLUMBIA--(Marketwire -05/30/12)- Snipp Interactive Inc. (www.snipp.com), an international provider of mobile marketing solutions listed on the TSX Venture Exchange (SPN.V), and VirKet S.A. de C.V. ("VirKet"), a leading Mexican provider of digital marketing services, today announced an agreement to establish an exclusive strategic partnership to offer mobile marketing services in Mexico. Snipp's "Mobilize Me" technology platform is now available in the Spanish language.
Under the strategic partnership arrangement, Snipp will license its "Mobilize Me" technology platform and provide mobile marketing services with VirKet in the Mexican market on an exclusive basis, and VirKet will correspondingly use Snipp as its exclusive provider of mobile marketing technology. The initial term of the arrangement will be for one year with an option for VirKet to extend for a second year and a right-of-first refusal for an extended exclusive license beyond the initial two-year term, all subject to reaching certain business performance targets. Moreover, VirKet will commit to making investments required to launch Snipp's "Mobilize Me" platform in the Mexican market, while Snipp has granted VirKet up to 3,333,333 warrants to purchase Snipp common shares. The warrants are exercisable at a price of C$0.22 per share and vesting will be subject to VirKet achieving certain agreed business performance targets. The warrants and underlying common shares are subject to a four month hold period and will expire on May 27, 2014. Also, VirKet will provide Snipp with its expertise and comprehensive services for search engine optimization, which will be included during the term of the agreement.
This agreement makes Snipp's mobile marketing technology unique across all of North America. It allows publishers, agencies and advertisers a full suite of mobile marketing tools for seamless implementation and interaction throughout Canada, the United States and Mexico.
Mr. Pedro Quinzanos Cancino, CEO of VirKet said, "With Snipp's mobile marketing platform, we can effectively merge the offline and online marketing solutions we build for our clients across a range of industries in Mexico including some of the leading retail, consumer and publishing brands in the country. More and more clients in Mexico are looking for mobile solutions. Snipp's scalable technology is ideal to support our growth and we really like the dynamic ideas and solutions they can quickly bring to market." Erik Hallstrom, CEO of Snipp noted: "VirKet is a marketing leader in Mexico with an impressive client list, and demonstrated ability to take advantage of emerging technology and marketing trends. This is a key relationship for Snipp as we continue to expand our international market footprint."
About Snipp Interactive Inc.
Snipp Interactive Inc. (www.snipp.com) provides print publishers, advertising agencies and corporate/consumer brands, including Fortune 500 companies, with a full suite of mobile marketing services in North America, and generates revenue by designing, constructing, implementing and managing these mobile marketing services for its customers. Snipp Interactive Inc. is headquartered in Washington, D.C. with international operations in Canada, Mexico and India.
About VirKet S.A. de C.V
VirKet SA. De CV (www.virket.com) is a digital marketing agency that provides telecom operators, publishers, advertising agencies and other companies with a large SMB footprint with digital advertising campaigns and products that are built to increase their ROI and provide additional income channels through their current customer bases. VirKet also specializes in working with government agencies to provide digital platform services that engage SMB's, educate them on the benefits of marketing online and providing tools to get their business online through various VirKet sponsored government programs. VirKet has offices in the United States and Mexico.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect Snipp Interactive Inc.'s current expectations. When used in this press 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. The forward-looking statements and information in this press release include information relating to the closing of the Qualifying Transaction. Such statements and information reflect the current view of Snipp Interactive Inc. 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 our 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.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Snipp Interactive Inc. undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
Snipp Interactive Inc. cautions that the foregoing list of material factors is not exhaustive. When relying on Snipp Interactive Inc.'s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Snipp Interactive Inc. has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these 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.
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