Xigem Enters Hospitality Vertical and Adds Important Functionality for Remote Economy
Toronto, Ontario--(Newsfile Corp. - July 26, 2021) - Xigem Technologies Corporation (CSE: XIGM) (FSE: 2C1) ("Xigem" or the "Company"), a technology provider for the emerging remote economy, is pleased to announce that it has entered into a letter of intent (the "LOI") to acquire a 25% interest in FB Labs Corp. ("FB LABS"), a lead generation software company with significant success in the hospitality vertical, for aggregate consideration of $750,000 (the "Acquisition"). On a continuing basis, this investment will allow Xigem to recognize its share of profit (or loss), after the effective date of acquisition, from the results of FB LABS.
FB LABS provides cloud-based software that assists businesses in capturing more leads and converting a higher proportion of these leads into sales. In addition, FB LABS offers a turnkey proposal builder that quickly capitalizes on opportunities with personalized, branded proposals. Businesses using FB LABS' software can increase speed-to-sale, closing rates and workplace efficiencies while obtaining real-time intelligence on the sales pipeline and customer preferences to enable more effective decisions.
Pursuant to the terms of the LOI, signed on July 14, 2021, the aggregate consideration of $750,000 will be satisfied through: (i) $100,000 shall be paid in cash upon closing the Acquisition, and (ii) $650,000 shall be paid in common shares in the capital of the Company (each a "Common Share") on the basis of a deemed price per Common Share equal to the volume weighted average price per Common Share on the Canadian Securities Exchange (the "CSE") for the twenty consecutive trading days preceding the closing of the Acquisition.
In addition, upon closing of the Acquisition, for a period of not less than one year and for as long as the Company holds at least 20% ownership in FB LABS, on a fully-diluted basis, the Company will have the right to appoint one member to FB LABS' board of directors. The Company intends to complete the Acquisition in the next 45-60 days, subject to the execution of a definitive agreement, completion of satisfactory due diligence and receipt of any and all regulatory approvals. The Acquisition is considered arm's length and no finder's fee is payable.
FB LABS has found significant initial success in the roughly USD $100 billion hotel food and beverage vertical, with nearly 50 hotels currently using the FB LABS platform, including hotels operating under the Fairmont, Novotel, Pullman, Sofitel and Swissôtel banners. Food and beverage typically represents 25% of gross revenues for hotels, more than half of which is generated from catering and banquet services. FB LABS' customized client acquisition software helps its hotel clients position their food and beverage offering as a competitive differentiator to attract event and accommodation bookings.
"FB LABS' software helps hotel operators thrive in today's remote economy. This investment aligns perfectly with our strategy of aggregating a portfolio of innovative technologies capable of disrupting traditional customer acquisition and retention business models," said Brian Kalish, co-founder and Chief Executive Officer of Xigem. "We are excited to expand Xigem's potential by both entering the hospitality vertical and integrating FB LABS functionality with our iAgent platform."
Xigem and FB LABS intend to pursue opportunities to integrate their software. The combination of FB LABS' lead generation platform and Xigem's iAgent customer relationship management platform has the potential to provide a seamless customer lifecycle solution from prospect to sale to post-sale servicing. In addition, there are further opportunities to add a payment gateway with FOOi, the peer-to-peer payment app Xigem has proposed to acquire, thereby extending FOOi's customer database as well.
"We look forward to working with Xigem to build on our initial success in the hotel market," said Jonathan Tick, founder and Chief Executive officer of FB LABS. "We have a recurring revenue model and a vision of launching our software at 1,000 hotels within the next three years. Our collaboration with Xigem can help us extend the functionality of our platform to better service our customers and target new markets."
The Company also wishes to announce that it will not be proceeding with its proposed investment in digital logistics platform Shipit.to, as originally announced on April 20, 2021.
About FB Labs
FB Labs is a cloud-based software suite that provides two unique solutions that help hotels and banquet halls sell more events without the traditional back and forth client interaction. FB Labs' software suite includes Lead Engagement Lab, a lead capture system that: (i) improves speed-to-sale by eliminating inherent points of friction; (ii) creates client stickiness by engaging the client in a useful process; and (iii) improves the customer journey, allowing sales teams to close more deals, faster. Proposal Lab is a turnkey proposal builder that: (i) creates workforce efficiencies by crafting beautiful proposals, faster; (ii) reinforces brand by delivering hotel-approved bespoke proposals; and (iii) unifies workflow by storing and securing documents in a central location.
For more information, please see www.fb-labs.com.
About Xigem Technologies Corporation
Established in Toronto, Ontario, Xigem is positioned to become a leading software-as-a-service technology platform for the emerging near trillion-dollar remote economy, with software capable of improving the capacity, productivity, and overall remote operations for businesses, consumers and other organizations. iAgent, the Company's patented technology, will provide organizations, businesses and consumers with the tools necessary to thrive in a vast array of remote working, learning and treatment environments.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.
Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company's future business plans, the anticipated timing and closing of the Acquisition, the parties entering into a definitive agreement, the Company receiving any and all required regulatory approvals, including CSE approval, the anticipated synergies and integration stemming from completing the Acquisition, the ability of the Company to finance the Acquisition; FB LABS' future business plans and their ability to grow in the hotel market upon their anticipated timelines, FB LABS' future growth potential, and the Company's ability to become a leading software as a service technology platform.
Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company's ability to continue as a going concern; the Company's ability to continue to develop revenue-generating applications; continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the continued growth of the Company; the Company fulfilling its future business plans, the Company entering into a definitive agreement and completing the Acquisition upon the terms and in the timelines stated above, the Company achieving the anticipated synergies and integration stemming from completing the Acquisition, FB LABS' fulfilling their future business plans and growing their business in the hotel market upon the terms and in the timelines stated above and the Company becoming a leading software-as-a-service technology platform.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company's inability to continue as a going concern; the Company's inability to continue to develop revenue-generating applications; the Company not receiving approval from the relevant governmental and/or regulatory authorities; the inability of the Company to grow; the Company being unable to fulfill its future business plans, the Company not completing the Acquisition at all or upon different terms and timelines, the inability of the Company to finance the Acquisition, the inability for the Company to achieve anticipated synergies and integration stemming from completing the Acquisition, the inability of FB LABS to fulfill their future business plan or grow their business in the hotel market upon the terms and in the timelines stated above and the inability of the Company becoming a leading software-as-a-service technology platform.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
On behalf of the Company:
Brian Kalish, Chief Executive Officer
 Source: American Hotel & Lodging Association and STR Inc.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/91129