Logiq Reports Progress with Major Corporate Initiatives, Sees Strong Outlook Ahead for 2023
NEW YORK, March 22, 2023 (GLOBE NEWSWIRE) -- Logiq, Inc. (OTCQX:LGIQ), a leading provider of digital consumer acquisition solutions, provided a shareholder update today on its progress with a number of major corporate initiatives.
“We have been preparing to report our 2022 results along with a detailed corporate update,” stated Logiq CEO, Brent Suen. “However, given the disclosure of a number of positive events over the past week, including the Form 4 filing of my large purchase of shares, we would like to take this opportunity to address some of the investor questions we’ve been receiving lately. In all, the recent events have been very positive and our goals are well on track.”
Ionic Share Purchase Agreement: Logiq received a $3 million investment from Ionic Venture under a $40 million share purchase agreement initiated in March 2022. On March 16, 2023, both the Ionic share purchase agreement and the associated S-1 registration were mutually terminated. Given the company’s progress over the last several months and positive outlook ahead, Logiq management believes it was in the best interest of shareholders to eliminate the funding program. Of the remaining shares held by Ionic, 2,255,000 shares were purchased by Logiq CEO, Brent Suen, with the balance purchased by a group of private investors.
Q4 Financials: The company reiterates that it expects to report revenues of approximately $7.5 million for the fourth quarter ended December 31, 2022, increasing more than 83% sequentially and up more than 9% over the same year-ago quarter. A major new consumer product client, which was onboarded in November 2022, is transitioning to Logiq’s programmatic advertising platform which would generate high-margin revenues. The company continues to estimate that Logiq’s annualized revenue run rate now totals about $40 million.
DataLogiq (DLQ) Subsidiary SPAC Merger: The company believes it is making good progress toward the completion of the SPAC merger and remains confident in completing a successful transaction. Logiq and the SPAC are processing the second round of comments they have received from the Securities and Exchange Commission (SEC) regarding the merger and Form S-4 filing. The company is also in the process of completing the audit of DLQ’s 2022 financial results on a stand-alone basis. The audited results will be added to the Form S-4 and submitted to the SEC along with the company’s response to the comments.
Post-DLQ SPAC Plans: The company believes the current struggling IPO market increases the attractiveness and value of public reporting companies like Logiq for potential M&A candidates looking to gain access to the capital markets. The previously announced merger exclusivity offered to the PrivCo announced in November expired on December 31, allowing Logiq to pursue negotiations with other potentially more favorable private companies looking to go public. The ideal target would enable Logiq to qualify for a listing on a senior stock exchange.
Strategic M&A: Over the last several years, Logiq has pursued an aggressive strategic M&A program, with two acquisitions under DLQ which were accretive and have continued to scale. Battlebridge, for example, secured a major customer win late in 2022 that is contributing significantly to revenues, with this driving a substantial margin expansion. The current industry environment continues to present accretive M&A opportunities that could contribute to significant revenue growth if completed. Given the ‘target-rich’ landscape, the company is evaluating several potential acquisitions that could create an exciting platform for customers, strategic partners and investors.
According to Suen: “We are in active discussions with targets engaged in Adtech, direct-to-consumer sales, specialized digital advertising, and performance marketing. All are generating revenue growth and are break even to profitable. If such a transaction would be completed, we would expect the combined scale to propel our growth exponentially in 2023.”
About Logiq
Logiq Inc. is a U.S.-based provider of e-commerce and digital customer acquisition solutions by simplifying digital advertising. It provides data-driven, end-to-end marketing through its results solution or providing software to access data by activating campaigns across multiple channels.
The company’s Digital Marketing business includes a holistic, self-serve ad tech platform. Its proprietary data-driven, AI-powered solutions allows brands and agencies to advertise across thousands of the world’s leading digital and connected TV publishers. For more information, visit www.logiq.com.
Important Cautions Reading 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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 the consummation of our DataLogiq segment’s proposed SPAC merger, 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, potential strategic transactions, 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, and other risks described in the Company’s prior press releases and in its filings with the 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.
Company Contact
Brent Suen, CEO
Logiq, Inc.
Email contact
Logiq Investor Relations:
Ron Both
CMA Investor Relations
Tel (949) 432-7566
Email contact
Logiq Media & ESG Contact:
Tim Randall
CMA Media Relations
Tel (949) 432-7572
Email contact
