Calgary’s Times Three Wireless Inc. announced earlier today that it has entered into an agreement to purchase several fundamental patents along with the right to further develop the patent portfolio by filing additional continuing patent applications. Times Three’s proposed acquisition currently includes 4 patents issued and pending in the USA that relate to the essential development platform and tools widely used to create applications (“apps”) for smartphones, tablet computers and other mobile devices.
The purchase agreement requires the Company, on the closing of the transaction, to issue to the seller $1.5 million in common shares priced at $0.11 per share (13,636,364 common shares) and to pay to the seller a minority percentage share of net licensing proceeds generated by Times Three during the life of the subject patent portfolio. The Company will also make certain advance revenue share payments to the seller in the first 12 months after the transaction is completed.
“We are very pleased to enter into an agreement to purchase this foundational and valuable patent portfolio which relates to a large and rapidly growing market for mobile device applications, which has been estimated by ABI Research to be worth US$27 billion in 2013,” said William Middleton, Times Three’s CEO.
The obligation of the Company to close the acquisition is subject to, among other things, its satisfactory completion of further due diligence over the next 40 day period as well as the receipt of all regulatory and third party approvals, including the approval of the TSX Venture Exchange.