I-ON Communications Co., Ltd. Announces LOI to Acquire Seoul, South Korea -based H9Pitch
SEOUL, South Korea, June 28, 2019 /PRNewswire/ -- I-ON Communications Co., Ltd. ("I-ON Communications" or the "Company"), www.i-on.net/eng, a wholly-owned subsidiary of I-ON Digital Corp. (OTCQB: IONI) ("I-ON Digital"), a Seoul, South Korea based global enterprise software company focused on delivering leading digital experience, CMS, unstructured data management and digital marketing solutions and services to mid and large private and public sector enterprises, is pleased to announce that it has entered into a binding Letter of Intent ("LOI") to acquire all of the issued and outstanding shares ("acquisition") of Seoul, South Korea-based H9Pitch (www.h9pitch.com), a fast growing traditional and multi-media design studio and agency catering to the domestic amateur and professional sports industry. I-ON has commenced the due diligence process and under the terms of the LOI, a definitive purchase agreement will be executed as soon as practical or no later than third quarter of this year, upon which H9Pitch will become a wholly-owned subsidiary of the Company. The full yet to be disclosed purchase price, which is predicated on H9Pitch's ability to generate double-digit revenue growth over the next twelve months to $2 million while maintaining its relatively low overhead, is expected to be financed primarily with I-ON's balance sheet, which was recently shored up by an investment from Seoul-based UTC Invest. In addition, because no shares of I-ON Digital will be issued as part of the transaction, there will be no dilution to I-ON Digital's OTCQB listed shares and the deal should be immediately accretive to earnings as a result.
Since its founding in 2013 and followed by their successful launches of domestic football apparel brands such as Forward and Over The Pitch (OTP), H9Pitch has expanded its portfolio of products and services beyond just concept origination, creative direction and fashion to include lifestyle products and technical gear, digital media including videography and photography, as well as event planning and exhibition services for major sponsors. H9Pitch's diverse and growing clientele comprises of professional Korean football teams such as Seongnam FC and Jeju United, clubs such as the Adidas Tango League, as well as high profile events and exhibitions associated with the Seoul Marathon, Mizuno and Nike among others.
"We are very pleased and excited to have entered into this binding LOI with H9Pitch and excited to have the opportunity to secure additional infrastructure and talent as we continue to broaden out our sports tech franchise" said James Oh, Chairman and CEO of I-ON Communications. "This transaction represents a significant opportunity for us to incorporate, for example, our innovative and data driven wearable devices and technology into H9Pitch's next generation uniforms uniquely addressable to the domestic sports sector, in particular Korea's wide-reaching amateur and pro football clubs and leagues in which H9Pitch has established a strong foothold in recent years. Their attributes and services will be complementary and instrumental as part of our ongoing and previously announced engagements with the KLPGA and Pacific Pro Football, along with the Korean Federation of Motorcycle Sports, Korea's junior and mid-amateur golf federations and Korea's Amateur Baseball League. H9Pitch will now have access to these leagues as well to enhance their footprint and we look forward to working closely with their solid and dedicated team to execute on our combined growth plans, in part as it relates to the imminent launch of our sports data management platform offering, which will offer a unique blend of turn-key solutions geared for organizers, teams and audiences of live events."
About I-ON Digital Corp.
I-ON Digital Corp. (www.i-on.net/eng) is a Seoul, South Korea-based software and solutions developer as well as provider founded in 1999.After being awarded its first of six key patents by 2003, I-ON has sold to over 1,600 clients across numerous verticals in both the private and public sectors, primarily throughout South Korea, Japan and Southeast Asia. The Company's core offerings include DXP (Digital Experience Platform) and revolve around unstructured data management, Sports data software and Energy ICT solutions.
Forward Looking Statements
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the Securities and Exchange Commission ("SEC"). There may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.
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I-ON Digital Corp.
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SOURCE I-ON Digital Corp.
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