Significant developments in the second quarter of 2018 In April 2018, the Company executed a non-binding letter of intent to acquire Stratus Data Systems Inc, a US-based MLS software provider with a technology platform used by real estate boards and brokers in Canada and the US.
In April 2018, the Company executed a consulting agreement with Cherre, Inc (“Cherre”), a US-based developer of an inter-connected market platform that provides residential real estate data to investors and brokerage firms. Under this agreement, Cherre will work collaboratively with iLOOKABOUT on the development of a platform to facilitate a real estate data marketplace utilizing blockchain technology. Under the terms of the consulting agreement, Cherre will receive a fixed monthly fee as well as 1,000,000 stock options, such options having an exercise price of $0.30 and vesting on mutually agreed upon milestones.
In April 2018, in accordance with an executive employment agreement, the Company issued 1,000,000 stock options to the Company’s Chair of the Board and CEO, such options having an exercise price of $0.20 and vesting 25% upon grant and 25% on each of the three anniversaries of the grant thereafter and an expiry five years after the grant date.
In June 2018, the Company announced its intent, subject to regulatory approval, to commence a normal course issuer bid. The Company intends to purchase up to 5,674,609 Common Shares in the capital of the Company (the “Common Shares”), representing approximately 6.7% of the Company’s issued and outstanding Common Shares and 10% of the Company’s “public float” (as such term is defined under the TSX-V Corporate Finance Manual).
Significant developments subsequent to the second quarter of 2018 include:
In July 2018, the Company received approval from the TSXV with respect to the Company’s normal course issuer bid application.
In July 2018, the Company purchased 84,000 of its Common Shares at a price of $0.175 per Common Shares, which Common Shares were subsequently cancelled.
** Also former Altus Group team (T.AIF)
In July 2018, the Company announced the appointment of Mr. Jordan Ross as Chief Operating Officer of the Company. The Company issued 850,000 Stock Options, with an exercise price of $0.20 and vesting 50% upon grant and 25% on each of the two anniversaries of the grant thereafter, which options will expire on the fifth anniversary of the date of issuance if not then exercised, to Mr. Ross pursuant to the terms in his employment agreement.
In the second quarter of 2018,
significant increases in professional service fees (i.e. legal and consulting) were incurred,
primarily to support the development of a platform to facilitate a real estate data marketplace utilizing blockchain technology (the “ReBloc Platform”) and related infrastructure. Such expenses primarily included (i) legal fees with respect to development of an appropriate corporate structure and supporting contractual agreements related to the ReBloc Platform; and (ii) consulting fees with respect to development of the ReBloc Platform.
These expenses totalled approximately $250,000 for the three months ended June 30, 2018, and have been included as nonoperating and/or non-recurring items in the calculation of Adjusted EBITDA (see the “Adjusted EBITDA” section herein). Included in the total Adjusted EBITDA adjustment with respect to share-based compensation expenses, is approximately $33,000 related to a grant of options for the development of the ReBloc Platform.
In the fourth quarter of 2017,
the Company incurred out of the ordinary employment termination-related costs of approximately $337,500. These termination-related costs were included as a non-operating and/or non-recurring item in the calculation of Adjusted EBITDA for the three months and year ended December 31, 2017.
https://globenewswire.com/news-release/2018/04/12/1469293/0/en/iLOOKABOUT-Announces-Joint-Venture-with-Cherre.html Cherre has been engaged as a consultant of iLOOKABOUT to work collaboratively in the development of the joint blockchain initiative. Under the terms of the Consulting Agreement, Cherre will receive a fixed monthly fee as well as 1,000,000 stock options, such options having an exercise price of $0.30 and vesting on mutually agreed upon milestones. The Agreement also contains certain participation rights of each of the parties should the joint initiative result in an initial coin offering, with iLOOKABOUT retaining 70% ownership of such an initiative.