Jerrick Media Holdings, Inc. Announces Letter of Intent to Acquire E-Commerce Agency Seller's Choice
Jerrick to Present at 9th Annual LD Micro Conference in Los Angeles
FORT LEE, N.J., May 22, 2019 /PRNewswire/ -- Jerrick Media Holdings, Inc., (OTCQB: JMDA) (the "Company" or "Jerrick") is pleased to announce that it has signed a letter of intent (the "LOI") dated May 21, 2019 to acquire the assets of e-commerce marketing agency Seller's Choice in a tuck-in acquisition that should fundamentally fortify Jerrick's revenue initiatives.
Seller's Choice, established in 2016 and founded by CEO Jay Goldberg, is an e-commerce digital marketing solution provider based in Fort Lee, NJ. Seller's Choice leverages their platform and professional services to advance the reach of both B2B and B2C product and service brands. Utilizing their integrative next-gen marketing platform, Seller's Choice focuses cohesively in the four key factors of online sellers–sell-through, differentiation, community and compliance–to help e-commerce businesses establish their brand identity and realize profitable and sustainable growth while maximizing customer engagement and retention. The purchase of Seller's Choice with its team of seasoned marketing, e-commerce strategy and sales professionals supporting 100+ customer relationships represents a complementary acquisition for Jerrick, and positions its content studio, Vocal for Brands, for growth through broadening its existing capabilities in sales and marketing resources.
The transaction creates a distinctly new value proposition for Jerrick's flagship product Vocal and Seller's Choice's established and recurring brand relationships. Seller's Choice will benefit from Vocal for Brand's proven branded content and business intelligence methodologies. At the same time, Jerrick can leverage Seller's Choice's established reputation as a premier destination for e-commerce sellers to introduce new capabilities to its expanding network of creators and brands.
"In partnering with Jerrick and aligning our premium service offering with Vocal for Brands, Seller's Choice will further its significant reach, engagement and transactional growth for our valued brand partners and expanding account base," said Seller's Choice CEO Jay Goldberg.
Pursuant to the terms of the Letter, Jerrick will acquire all of Seller's Choice assets in a two-phase transaction, for an aggregate purchase price of $2,000,000 (the "Purchase Price"), to be satisfied through a combination of cash and equity considerations. Jerrick and Seller's Choice expect to enter into a Purchase Agreement to purchase 14% of the assets in early June, for a purchase price of $280,000 in equity, calculated as 933,333 restricted shares of Jerrick Common Stock at a price of $0.30. The remainder of the purchase is expected to take place during the summer of 2019.
"This agreement represents the culmination of months of work between the talented management team at Seller's Choice and our internal acquisitions group at Jerrick Media Holdings," said Jerrick CEO Jeremy Frommer. "I look forward to keeping our shareholders updated on the execution plan, revenue integration and milestones the Company has outlined."
Additionally, the Company today announced that it will be presenting at the 9th Annual LD Micro Invitational on Tuesday, June 4th at 9:20AM PST/12:20PM EST. Jeremy Frommer, Founder and CEO of Jerrick, will present an overview of the Company's growth strategy and a comprehensive business update. Jerrick will be available during the conference for one-on-one meetings.
For more information please review Jerrick's Investor Presentation: https://jerrickmedia.docsend.com/view/6pdcppw
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SOURCE Jerrick Media Holdings, Inc.