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NEW YORK, Nov. 02, 2021 (GLOBE NEWSWIRE) -- Logiq, Inc. (OTCQX: LGIQ, NEO: LGIQ), a global provider of award-winning customer acquisition solutions, announced its board of directors has approved a plan to separate its DataLogiq and AppLogiq businesses into two independent publicly traded companies.
Following a strategic review of the company's growth strategies and structure, the board determined that creating two standalone businesses would best position DataLogiq and AppLogiq to capitalize on their respective growth opportunities in the rapidly evolving global e-commerce and fintech landscape, and would be the best path to creating shareholder value.
The plan calls for the AppLogiq business to be acquired by another existing or newly formed publicly traded company. The AppLogiq segment includes mobile e-commerce solutions, a recently announced mobile fintech platform for microlending, and the company’s beneficial stake in PT Weyland Indonesia Perkasa (WIP). WIP is the operator of the AtozGo™ food delivery service and AtozPay™ mobile e-wallet.
The separation of the two businesses is expected to result in shareholders of Logiq receiving shares in the company that acquires the AppLogiq business upon consummation of the transaction. However, the final structuring of the transaction remains subject to execution of definitive agreements and may change, as well as to subject to satisfaction of market, regulatory and other customary closing conditions.
“We believe separating AppLogiq and DataLogiq into two ‘pure-play’ publicly-traded companies would unlock additional value for our shareholders,” stated Brent Suen, president of Logiq. “As independent companies, each would have a sharper focus and greater flexibility to pursue M&A opportunities in their respective markets for e-commerce in the U.S. and fintech markets in Southeast Asia.
“We see this also enabling considerably higher peer valuations compared to where Logiq is at today with AppLogiq and DataLogiq combined. As one analyst recently pointed out, for Logiq, ‘the sum of the parts is greater than the whole.’ Based on comparable public market valuations and private equity funding for companies in the emerging markets fintech sector, it would imply that AppLogiq’s standalone valuation could justify $100 million.”
There are several companies that Logiq has partnered with in emerging markets that are currently reviewing a potential acquisition of, or merger with, AppLogiq. Such a transaction could form a substantial platform for digital services to be offered in high-growth emerging markets.
Logiq recently announced engaging a leading U.S. investment bank, The Benchmark Company, to assist Logiq with this transaction and potentially others. Logiq plans to complete the separation before the end of the year, subject to customary conditions and approvals.
Logiq Inc. is a U.S.-based leading global provider of e-commerce and fintech business enablement solutions. Its DataLogiq business provides a data-driven, end-to-end marketing and consumer acquisition solution. Its AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend and personalization. The company’s Fixel technology offers simplified online marketing with critical privacy features.
In its AppLogiq business, Logiq’s platform-as-a-service, branded as CreateApp™, enables small- and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. CreateApp™ empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way.
CreateApp™ is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia. The company’s PayLogiq, branded as AtozPay™ in Indonesia, offers mobile payments, and GoLogiq, branded as AtozGo™ in Indonesia, offers hyper-local food delivery services. Connect with Logiq: website | LinkedIn | Twitter| Facebook.
Important Cautions Regarding Forward-Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This press release also contains forward‐looking statements and forward‐looking information within the meaning of Canadian securities legislation that relate to Logiq’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward‐looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release. Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In particular and without limitation, this press release contains forward‐looking statements regarding our products and services, the use and/or ongoing demand for our products and services, expectations regarding our revenue and the revenue generation potential of our products and services, our partnerships and strategic alliances, the impact of global pandemics (including COVID-19) on the demand for our products and services, industry trends, overall market growth rates, our growth strategies, the continued growth of the addressable markets for our products and solutions, our business plans and strategies, the proposed separation of Logiq’s AppLogiq and DataLogiq business into two public companies, including, without limitation, our ability to successfully locate and consummate the contemplated strategic transactions, the structure of any such transaction, timing of such transaction, and the valuation of the businesses after completion of any such transaction, if any, and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation that are available on www.sedar.com, including under the heading "Risk Factors" in the Company's Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Logiq to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward‐looking statement. Any forward‐looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
Brent Suen, President
Media & Investor Contact
Ronald Both or Justin Lumley
CMA Investor & Media Relations
Tel (949) 432-7566