Earlier today Intertainment Media Inc. announced that it has executed a binding Letter Of Intent to sell all the assets of Yappn, an online destination where people can meet, chat, engage and consume content in almost any language, to Brooklyn, New York company Plesk Corp., which is a publicly listed entity on the OTCBB, for the sum of $7 Million USD. The transaction is subject to board and necessary regulatory approvals, including the acceptance of the TSX Venture Exchange.
The arms length transaction is contemplated to close in and around March 31, 2013. Under the terms of the Letter Of Intent, Intertainment and its partners will receive 70 Million shares of Plesk at a value of $0.10 USD per share, with Intertainment controlling a minimum of 60% of the received shares of Plesk following the completion of the transaction. The entity will change its name to “Yappn Corp.” and the parties are currently finalizing financing that will provide Yappn with working capital following the completion of the transaction.
Yappn was initially proposed as a potential long term opportunity in late 2012, by Intertainment CEO David Lucatch, based in part from knowledge gained by Intertainment and its management team through early stage user engagement of its real-time language services platform, Ortsbo. Yappn’s real time multi-language chat platform will be provided through an agreement with Ortsbo.
“Intertainment Media Inc. is focused on incubating unique social media opportunities and innovative technologies, bringing them to a stage where we can create significant shareholder value,” said David Lucatch, CEO of Intertainment Media and founder of Yappn. “Management believes that the best opportunity for its social media success is in the US as the US public markets are showing significant signs of optimism with record market highs. The sale of the Yappn assets to a US publicly listed entity is a key step to achieving our goals.”
In addition to the Yappn asset sale, management continues to work on senior US listing opportunities for other assets including Ortsbo. Management is also exploring various options, such as a special dividend, for the distribution of a portion of the shares it receives from the Yappn sale to Intertainment shareholders. Any distribution will be at a future date and will be subject to board and necessary regulatory approvals and compliance. Further information will follow.
Currently, Yappn is inviting interested people from around the world to sign up to be part of its upcoming beta testing program. Participants in the beta trials will have the opportunity to earn exclusive badges and rewards as part of Yappn’s gamification program.