Star Metro - AirIQ Announces Strategic Acquisition

The acquired customers have over 1,000 devices that generate approximately $450,000 in total annual recurring revenues with margins of more than 70%. In addition, approximate hardware revenues of $300,000 have been generated by the acquired assets of the business during the previous twelve months. The acquired assets have generated approximately $225,000 in EBITDA during the previous twelve months. The amounts have not been audited.

The purchase price for the acquisition is up to a maximum of $850,000, with $600,000 paid in cash on closing, with $150,000 held in escrow. The transaction also includes a potential earn-out of up to $100,000 provided that certain increases in gross profit dollars are achieved during the twelve-month period following the date of closing. The acquisition is being funded by operating cash on hand. The acquisition price does not include closing costs.

The Company also entered into a Transition Services Agreement with the principals of the acquired asset business for a period of one year to ensure a smooth transition of customers, know-how, operating processes and sales growth.

"We are pleased to have been able to acquire these strategic assets. The immediate positive impact of the acquired base of customers with high margin recurring revenues provides another significant step forward in our growth strategy," stated Mike Robb, President & Chief Executive Officer of AirIQ. "The acquired assets also include a new video telematics solution offering for which the Company has immediate demand from customer opportunities in our growth channels", continued Mr. Robb.

All dollar amounts set out herein are in Canadian dollars.

About AirIQ

AirIQ (TSXV:IQ) was founded in 1997 and is a pioneer in IoT based asset management solutions. AirIQ's solutions allow commercial businesses to reliably, effectively and efficiently monitor assets in near real time. The Company develops iOS and Android mobile and web-based applications, and cloud-based solutions that stand-alone or that can be readily integrated with existing software. AirIQ solutions are mixed fleet capable and provide fleet reporting, maintenance, compliance, safety and analytics utilizing multiple hardware options including a fully integrated video telematics camera solution and a battery powered solution for non-powered assets. For additional information on AirIQ please visit the Company's website at www.airiq.com or follow us on LinkedIn.

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

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For more information please contact:

AirIQ Inc.,
Michael Robb, President and Chief Executive Officer,
(905) 831-6444
[email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: AirIQ, Inc.

View the original press release on ACCESS Newswire

J.Hall--SMC