LAS VEGAS, NV--(Marketwired - Oct 26, 2016) - KSIX Media Holdings, Inc. ("KSIX" and/or "Company") (OTC PINK: KSIX), a Las Vegas, Nevada-based publicly traded company under the ticker symbol KSIX on the OTC, has entered into a Letter of Intent (the "LOI") for a $24 million acquisition of telecommunications company True Wireless, LLC -- an Oklahoma Limited Liability Company. The LOI in connection with the proposed acquisition includes all the assets of True Wireless, LLC.
"We are excited about the opportunities presented by combining the assets and operations of True Wireless with the capabilities of KSIX," said Carter Matzinger, CEO of KSIX. "True Wireless is a current client of ours and we believe it's a fantastic acquisition. Together we'll be able to capture multiple revenue synergies and significantly expand the True Wireless subscriber base. Taking our talents and marketing our own asset is an exciting development for Ksix. We have always been marketing other companies' services and now it's time for us to market our own company. Our ultimate goal is to become one of the leading Lifeline providers in the US, and the first and only 100% automated and completely online compliant Lifeline provider."
The transaction features an investment structure and set of terms that offer the current equity owners an opportunity to realize immediate liquidity as well as allow existing management a meaningful opportunity to participate the upside potential of the new combined entity.
Based on True Wireless trailing nine-month revenues of approximately $8.75 million and net income of approximately $2.4 million during the same period. KSIX will assume all debts and all existing contingent liabilities. The tentative deal terms are made up of three components:
1) Cash payment of up to $6 million through a debt instrument
2) A promissory note of $6 million
3) The issuance of common stock in KSIX totaling 24 million of shares of common stock.
Following the closing of this transaction, KSIX intends to fully integrate the management of True Wireless and keep the company as a wholly owned subsidiary going forward and will retain key True Wireless management positions. The new combined headquarters will operate out of the existing KSIX facility in Las Vegas, NV. The management anticipates having approximately 75 million shares outstanding post close of the transaction.
ABOUT KSIX MEDIA HOLDINGS
KSIX Media Holdings, Inc. (OTC PINK: KSIX) is an SEC fully reporting media and Internet company located in Las Vegas, Nevada. Currently, there are three divisions, KSIX, LLC, DigitizeIQ, LLC and Blvd Media Group, LLC, and KSIX, LLC is a digital advertising network utilizing proprietary technology and intellectual properties designed to create revenue streams for their affiliate clients and to provide advertisers with increased measurable audience. KSIX provides performance-based marketing solutions to drive traffic and conversions within a Cost-Per-Action ("CPA") business model. KSIX has an online advertising network that works directly with advertisers and other networks to promote advertiser campaigns. KSIX manages offer tracking, reporting, and distribution on the third-party platform.
ABOUT TRUE WIRELESS
True Wireless is an eligible telecommunications carrier ("ETC") providing discounted and subsidized wireless (cell phone) service. True Wireless was founded in 2008 to provide Lifeline assisted wireless services to eligible Americans in 5 states: Texas, Oklahoma, Arkansas, Maryland, and Rhode Island. True Wireless utilizes all 4 major wireless carrier networks to assist those who qualify for the Federal Lifeline Program. Customers are able to choose from a wide variety of phones.
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