WEST PALM BEACH, FL--(Marketwired - Jan 30, 2017) - iTeknik Holding Corporation (
iTeknik Holding Corporation accessed its recently secured credit facility to draw down $5 million dollars in cash of which $4.1 million was used to acquire assets owned by TCA known as Arrowhead Advertising. In addition, to the cash component, the Company agreed to pay the sellers an additional $1 million dollars in the form of 18 month convertible debt.
The Arrowhead Assets were acquired by the Company's newly formed, wholly owned subsidiary, Big Rhino Corporation, free and clear of any debts and encumbrances. With the acquisition of these assets, Big Rhino will be a full service advertising agency with the initial potential to annually place up to $40 million in traditional media and earn commissions from media placement, digital media and creative work in excess of $4.5 million annually. Big Rhino is expected to earn over $1 million dollars annually, excluding depreciation, amortization, interest and taxes (EBITDA).
Fred Wicks, the Company's Chairman and CEO, said, "This acquisition will provide the basis for future growth both through acquisitions and organic growth. We've hired and assembled a talented and experienced team to manage our new operating company."
Kyle Eng, who was hired as the president of Big Rhino, stated, "By being part of iTeknik I can focus my team on organic growth, and fulfillment to enhance shareholder value and allow Fred and his team to focus on the Company's finances and acquisitions. I'm very excited by what we can achieve together. It's the perfect team that can only get stronger over time!"
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Safe Harbor: This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.