Datable Technology Elects Not to Proceed with Acquisition of Dabbl
March 3, 2022 (Source) — Datable Technology Corp. (TSXV: DAC) (OTCQB: TTMZF) (the “Company” or “Datable”), the developer of a proprietary, SaaS-based Consumer Lifecycle and Data Management Platform called PLATFORM3, announces that it has elected not to proceed with the acquisition of Adjoy, Inc. (DBA Dabbl, “Dabbl”). On November 11, 2021, Datable announced that it had signed a non-binding letter of intent (the “LOI”) on September 8, 2021 to acquire (the “Acquisition”) 100 percent ownership of Dabbl, subject to completion of due diligence, a financing of at least $2.5 million and other terms and conditions customary with an acquisition.
While due diligence and discussions with Datable’s customers support the value proposition for integration of Dabbl’s product with PLATFORM3, Datable elected not to proceed with the acquisition:
- Datable believes that the combined company would need significantly more than $2.5 million in funding to achieve meaningful milestones. Based on current market conditions, Datable believes that a larger new financing would be overly dilutive to current shareholders.
- Datable expects strong revenue growth in 2022, with close to $3 million in revenue under contract for 2022 and future periods. Datable expects gross margin to improve to about 50 percent in 2022, compared with approximately 40 percent in 2021, due to improved operational efficiency and product mix. Datable recently announced an estimated revenue growth of 77 percent to approximately $3.5 million for the year ended Dec. 31, 2021, compared with the same period in 2020, with gross margin expected to be approximately 40 percent (see press release dated Feb. 16, 2022).
- While Datable expects strong organic growth in 2022, it plans to grow by acquisition as well, subject to market conditions. The market for digital marketing and consumer data solutions is large and growing with increasing consolidation opportunities due to the recent changes in regulations and policies governing the use of consumer data.
“While we have elected to not proceed with the acquisition of Dabbl, we see the potential for us to continue working with Dabbl and other sources of first-party consumer data to provide solutions to our customers,” said Rob Craig, CEO of Datable. “Recent changes in consumer privacy laws and new regulations regarding consumer tracking and cookies have created a huge market opportunity for first-party consumer data solutions. PLATFORM3 enables our customers to collect, analyse and monetize first-party opt-in consumer data while rewarding consumers for purchasing and engaging with their brands. We continue to improve our solution and seek partners to address this opportunity and accommodate requests from our largest customers.”
About Datable Technology Corporation
Datable has developed PLATFORM3 a proprietary Consumer Lifecycle and Data Management Platform that is sold to global consumer brands. PLATFORM3 is delivered as a subscription service (Software as a Service model) and used by some of the worlds’ most valuable consumer brands to access new consumer communities and engage them while collecting, analyzing, and managing their first-party data. PLATFORM3 incorporates proprietary technology to monetize the consumer data, including demographics and purchasing behaviour, by sending consumers targeted offers by email and text messages. For more information, visit datablecorp.com.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Certain information in this news release constitutes forward-looking statements and forward-looking information (collectively, “forward-looking information”) within the meaning of applicable securities legislation. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Datable, Dabbl or their respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. These forward-looking statements include, but are not limited to, statements relating to expectations with respect to: the timing and outcome of the Acquisition; the anticipated terms of the Definitive Agreement; the anticipated benefits of the Acquisition to the parties and their respective security holders; the impact of the Acquisition and anticipated growth of the combined entity.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including assumptions as to the time required to negotiate and finalize the Definitive Agreement; the ability of the parties to receive, in a timely manner and on satisfactory terms, the necessary approvals; the ability of the parties to satisfy, in a timely manner, the conditions to closing; other expectations and assumptions concerning the Acquisition; and such risks contained in Datable’s documents filed from time to time on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive.
In respect of the forward-looking statements and information concerning the anticipated benefits and completion of the Acquisition and the anticipated timing for completion of the Acquisition, Datable and Dabbl have provided such statements and information in reliance on certain assumptions that they believe are reasonable at this time. Although Datable and Dabble believe that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release is made as of the date of this news release and Datable and Dabbl do not undertake an obligation to publicly update such forward- looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
There can be no assurance that the Acquisition will occur, or that it will occur on the terms and conditions contemplated in this news release. The Acquisition could be modified, restructured or terminated. Actual results could differ materially from those currently anticipated due to a number of factors and risks.
SOURCE Datable Technology Corp.
For further information: Datable Technology Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, email@example.com
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