VANCOUVER, BRITISH COLUMBIA - TheNewswire – Dec 2, 2020 – NameSilo Technologies Corp. (CSE:URL) (CNSX:URL.CN) PINKSHEETS (OTC:URLOF) (the “Company”) is pleased to announce that it has entered into a non-binding letter of intent (the “Letter of Intent”) with WGH Holdings B.V. (the “Buyer”) whereby the Buyer, subject to the entry into a definitive agreement, will acquire all of the Company’s interest in NameSilo LLC.
The transaction consideration will be approximately US$ 30 Million (the “Consideration”). The total consideration was based on a revenue multiple of 1.2 from the estimated 2020 financial year end. Of the Consideration, US$ 15 Million will be paid on closing and the remaining US $15 Million will be satisfied by three annual deferred payments of US$ 5 Million each (the “Deferred Payments”). As the Company currently owns 81.5% of NameSilo LLC, its gross consideration under the transaction is anticipated to be US $24.45 Million.
The Deferred Payments will also be secured by the units of NameSilo LLC. In the event of default by the Buyer, the membership interest in NameSilo LLC will be returned to the Company.
The Buyer will have 60 days to carry out its financial and legal due diligence of NameSilo LLC and, in consideration of which, NameSilo has granted exclusivity to the Buyer.
NameSilo LLC CEO Kristaps Ronka states: “We believe that this potential transaction is a natural evolution for NameSilo and we want to ensure our loyal clients that our team will continue to manage and drive the NameSilo business post-transaction and will continue to work tirelessly to provide our customers with best in class services and support for the years to come.”
Paul Andreola, CEO of NameSilo Tech states: “Since purchasing the company in August of 2018, we have seen significant development in NameSilo including more than a doubling of user count and revenues, and should this transaction close successfully in Q1 2021, we feel that this is a good opportunity to realize a significant return on equity from our original investment.”
Closing of the transaction will be subject to customary conditions to be included in the Definitive Agreement, financing of the Buyer and approval of the Canadian Securities Exchange.
NameSilo Technologies Corp.
Paul Andreola
President, CEO and Director
(604) 644-0072
www.brisio.com
NameSilo LLC
Kristaps Ronka
CEO
pr@namesilo.com
www.namesilo.com
About NameSilo Technologies Corp. and NameSilo LLC
NameSilo Technologies Corp. invests its capital in companies and opportunities which management believes are undervalued and have potential for significant appreciation. The company makes investments in both public and private markets and focuses on opportunities in a wide variety of industries excluding the resource and resource service sectors. Namesilo does not invest on behalf of any third party and it does not offer investment advice.
NameSilo LLC is a low-cost provider of domain name registration and management services. As an accredited ICANN registrar, NameSilo is one of the fastest growing domain registrars in the world with approximately 3.50 million active domains under management, and over 310,000 customers from approximately 160 countries.
Disclaimer for Forward-Looking Information
Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding potential future investments by the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause the Company’s actual results to differ materially from those expressed or implied by the forward-looking statements.
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