Chicago, IL, Jan. 12, 2021 (GLOBE NEWSWIRE) -- FOMO CORP. (US OTC: ETFM) has agreed to acquire EcoLite Holdings LLC (“EcoLite”; https://www.ecoliteled.com), a Baton Rouge, LA-based provider of smart lighting and Internet of Things (IoT) technology to business, industry and government across the United States. As part of the transaction, FOMO will purchase 100% of the Member Interests of Ecolite for the following consideration, subject to adjustment based on audited results:
- 2,549,383 Restricted 1% Series B Preferred Shares,
- $2,000,000 cash,
- $750,000 two-year 8% redeemable seller note,
- A three-year earn-out of annual profits greater than $960,000, and
- Stock option grants to key employees in admin and sales/marketing.
Estimated existing cash of $750,000 on EcoLite’s books will remain on the balance sheet at closing to fund operations as a wholly owned subsidiary of FOMO. EcoLite is an entity controlled by John Kelly, a FOMO Advisory Board member and owner of PPE Source International LLC (“PPESI”), a business partner of FOMO’s wholly owned subsidiary Purge Virus LLC (“PV”). EcoLite’s unaudited revenues and net income are growing rapidly, aided by strong direct sales, channel partners and planned online sales through global PaaS (platform as a service) providers and B2B marketplaces. Management believes Ecolite, together with the recently announced acquisition target Independence LED Lighting, LLC (“ILED”) which is anticipated to be folded into EcoLite, will enhance FOMO’s prospects to serve the anticipated smart/clean buildings initiative in Commercial, Municipal & Federal buildings throughout the United States. The letter of intent (LOI) was approved by ILED’s Board of Directors and executed by John Kelly and FOMO’s CEO on January 10, 2021.
John Kelly, EcoLite CEO, “My team and I have worked tirelessly for the past 5 years building the most comprehensive & highest quality LED Lighting product solutions in the United States. Always striving to provide the absolute highest efficacy fixtures & most stable products, ALL EcoLite LED products come standard with the industry’s only unlimited 10-year non-prorated product warranty. EcoLite is poised to be one of the fastest growing energy solutions company in America, and we are extremely pleased to be acquired by FOMO Corp. This relationship will help us aggressively exploit our industry leading retrofit lighting products & sports lighting platform. Additionally, we believe there are tremendous synergies to be realized with other FOMO subsidiaries, while building a smart/clean “One Stop Shop” platform for all buildings throughout the United States.”
Said Vik Grover, FOMO CEO: “The planned acquisition of EcoLite promises to bring FOMO a vibrant, rapidly growing smart lighting and IoT provider with a substantial book of business in business, industry and government including high profile installations such as NCAA sports venues and campuses. The transaction, if consummated, is expected to be immediately accretive to revenues and earnings and provide a foundation for the Independence LED Lighting LLC’s (“ILED”) assets, also under letter of intent (“LOI”), to realize synergies. Smart lighting and IoT are cornerstones of our strategy to position FOMO CORP. as a smart/clean buildings provider, including our October 2020 acquisition of disinfection solutions provider Purge Virus LLC.”
About FOMO CORP.
FOMO CORP. is a publicly traded company focused on business incubation and acceleration. The Company invests in and advises emerging companies aligned with a growth mandate. FOMO is developing direct investment and affiliations - majority- and minority-owned as well as in joint venture formats - that afford emerging companies access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.
Forward Looking Statements:
Statements in this press release about our future expectations, including without limitation, the likelihood that FOMO CORP. will be able to meet minimum sales expectations, be successful and profitable in the market, bring significant value to FOMO CORP.’s stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. FOMO’s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing. No information in this press release should be construed in any form shape or manner as an indication of the Company’s future revenues, financial condition, or stock price.
Contact:
Wayman Baker, PhD
EVP Corporate Development & Investor Relations
(630) 286-9560
IR@fomoworldwide.com