“Launched in February 2017, Advertiise, one of the Top10 Canadian Startups (2017) now has over 25,000 users in over 40 countries worldwide. They have been ranked #1 in Google SEO for 3 years in a row and were selected as a finalist (2016) in StartUp Canada. With over 135 million daily advertising impressions and growing, we strongly believe that this acquisition is fulfilling our commitment of creating an unparalleled digital experience. We are constantly evolving, growing and looking to expand our portfolio of interconnected tech platforms. With Advertiise and their exceptional team joining the Intema family, we are creating an ecosystem that will allow us to attract, engage and retain advertisers, affiliates, publishers, players and casual gamers,” said Laurent Benezra, President and CEO of Intema.
Advertiise is recognized as one of the first movers in peer-to-peer advertising marketplace development. As global technologies continue to develop, Advertiise has been implementing some of the latest tech, namely artificial intelligence (AI) and blockchains, to evolve the advertising industry. By connecting buyers and sellers through an online marketplace, Advertiise intends to make advertising more accessible, efficient, and cost effective. The company’s online marketplace enables media sellers to list, price and promote real-time inventory of assets including asset attributes like traffic and views. On the other hand, media buyers gain the advantage of being able to access a real-time array of tailored media assets.
I’m no advertising expert, but for a company focused on advertising, the name “Advertiise Technologies” comes across as a little…bland? However, the two ‘ii’ in ‘Advertiise” actually have a purpose, making my baseless skepticism even more shameful. According to Advertiise, the two i’s are intended to represent the company’s buyers and sellers as well as the supply and demand that keeps them connected. For the most part, Advertiise’s entire brand is centered around this symbolism as seen on their website.
With that fun fact out of the way, lets talk about what this means for Intema. Through acquiring Advertiise, Intema solutions will have gained an invaluable marketing asset. Advertiise has amassed over 25,000 users from 40 different countries, over 150,000 global advertising listings, and over 135 million daily advertising impressions. Moreover, the company ranked #1 in Google SEO for 3 years in a row and was selected as a finalist in 2016 for StartUp Canada, and as one of the Top10 Canadians Startups in 2017.
“We are excited to join the Intema team and their portfolio of companies. This partnership aligns with our strategic vision in working alongside strong digital media assets. Market conditions changed dramatically and suddenly in 2020. Nevertheless and against the pandemic headwind, Advertiise still managed to double its revenues and acquire strategic assets. We strongly intend to keep pushing and continue scaling revenues and customer acquisition in 2021 with a dedicated focus on digital media assets within the Esports media category,” said Mark Vella, CEO of Advertiise Technologies Inc.
For the year ended March 31, 2020 Advertiise’s non-audited financial statements reported total revenues of US $110,000 and net profits of US $46,000. Additionally, as of March 31, 2021, the company had total assets of US $263,000 and total liabilities of US $380,000. With this in mind, Advertiise’s current liabilities outweigh its assets, indicating that the company is unable to generate enough profits to repay its debts or amounts owing. Mr. Vella attributes Advertiise’s deficit to the variability of current market conditions and the “pandemic headwind”.
Since the middle of March 2020, the economic recession has caused the ad market to plunge both in the U.S. and globally. However, according to Forbes, digital media and ad spending, which currently accounts for over 50% of ad spending, is expected to rebound and will continue to increase at a rate greater than traditional media. With this in mind, it would be unreasonable to expect advertising companies to come out of the pandemic unscathed.
However, by partnering with Intema, Advertiise will have access to funding dedicated to the company’s operations. This will enable the company to continue scaling revenues and customer acquisition in 2021. According to the acquisition terms outlined in the LOI, Intema will issue 2 million common shares of the Corporation and pay a maximum earnout of CA $2 million. Additionally, in order to assist in the attainment of yearly revenue targets, Intema will allocate a minimum working capital of CA $2 million to the operations of Advertiise. Intema and Advertiise intend to make efforts to close this acquisition on or before April 30, 2021.
Intema’s share price opened at $0.52 this morning and is currently up 10.64%. Intema’s share price sits at $0.52 as of 9:30AM ET.