As part of Intertainment’s ongoing strategy to create a richer and deeper relationship with its users across all its divisional lines of business, Commobility offers the addition of key development in the mobile arena, including proprietary intellectual properties extending the reach of Intertainment’s services globally.
Intertainment has acquired all of the issued and outstanding shares of Commobility pursuant to a share purchase agreement between Intertainment and the shareholders of Commobility. In consideration for all issued and outstanding shares of Commobility, Intertainment will issue 6,000,000 common shares at a deemed price of $0.70 per Intertainment Share to the Commobility Vendors over a period of one calendar year from the closing date pursuant to a voluntary escrow agreement, with 48% of the Intertainment Shares having been released upon the closing of the transaction.
The escrow agreement provides that the remaining 3,120,000 Intertainment Shares will be released to the Commobility Vendors in segments of 13% at the end of each of the calendar quarters following the closing date. The acquisition of Commobility provides Intertainment and its subsidiaries, Ortsbo Inc. and Ad Taffy Inc, a platform to operate on mobile devices and access to software and patents in development and developed by Commobility, which will significantly enhance the reach of the translation capabilities of the Ortsbo platform as well as other Intertainment divisional offerings.
Commobility assets include patent applications and software platforms for creating generic communication channels based on device proximity as well as enabling translation between devices in close proximity to each other. With this acquisition, in the near term, Ortsbo’s translation capabilities will span situations where translation occurs on single device, multiple devices that are in proximity to each other and between users that are anywhere in the world on any device through cross-language, cross-device social network and Ortsbo’s cross-social network translation applications.