Montréal, QC – Siyata Mobile Inc. (TSX-V:SIM | OTCQX: SYATF) (the “Company” or “Siyata”) is pleased to announce it has entered into an agreement with an Israel based technology company for the acquisition (the “Transaction”) of distribution rights of an enterprise workforce hardware and software that will be embedded on the Company’s connected in-vehicle and rugged portfolio of devices.
The software will be pre-installed on Siyaya’s portfolio of 4G connected in-vehicle and rugged devices and the Company expects to be earning recurring revenue from the enterprise workforce software as early as Q1 of 2018.
Marc Seelenfreund, CEO and Chairman of Siyata, commented, “This is a very important transaction for Siyata as it will allow us to achieve software based recurring revenue on our devices. This is the second transaction that involves a recurring revenue stream, and this gives us an important software advantage to our hardware initiatives, which will contribute to our top line sales and profitability. Our continued objective is to use our innovative devices in order to leverage partnerships and compete on similar potential acquisitions to build a substantial software recurring revenue stream.”
Pursuant to the terms of the Agreement, and subject to the approval of the TSX Venture Exchange (the “Exchange”), the Company shall issue the Vendor that number of common shares equal to US$700,000 (the “Shares”). The number of Shares to be issued shall be based on the average closing price of the Company’s common shares in the 30-day period prior to the completion of the Transaction.
In addition, on a quarterly basis commencing Q4 2017, the Company has agreed to pay quarterly earn-out payments for the achievement of certain agreed upon profitability milestones. Such earn-out payments, if applicable, will continue quarterly until March 31, 2020.
The Transaction is an arm’s length transaction and remains subject to the approval of the Exchange.
Siyata Mobile Inc. is a leading global developer and provider of cellular communications systems for enterprise customers, specializing in connected vehicle products for professional fleets, marketed under the Uniden® Cellular brand. Since developing the world’s first 3G connected vehicle device, Siyata has been a pioneer in the industry, launching the world’s first 4G LTE all-in-one fleet communications device in 2017. Incorporating voice, push-to-talk over cellular, data, and fleet management solutions into a single device, the company aims to become the connected vehicle communications device of choice for commercial vehicles and fleets around the world.
Siyata also offers rugged phones for industrial users and signal boosters for homes, buildings, and fleets with poor cell coverage. Siyata’s customers include cellular operators, commercial vehicle technology distributors, and fleets of all sizes in Canada, the U.S., Europe, Australia, and the Middle East.
On Behalf of the Board of Directors of:
SIYATA MOBILE INC.
Glenn Kennedy, VP Sales
Siyata Mobile Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.