WeCommerce Will Conduct an Investor Presentation When Its Stamped Acquisition Closes
03/09/2021
VICTORIA, British Columbia--(BUSINESS WIRE)-- WeCommerce Holdings Ltd. (“WeCommerce”or the “Company”) today announced that it plans to host an investor presentation and Q&A session for shareholders shortly after the closing of its recently announced acquisition of the assets of Stamped.io Pte. Ltd. (“Stamped”), which is estimated to occur within the next 45 days. Because of confidentiality restrictions in the acquisition agreement and the pending completion of audited financials for Stamped, we are currently limited in the disclosure we can provide to shareholders.
The Stamped acquisition is expected to be accretive to WeCommerce’s consolidated revenues, organic revenue growth, and operating margins while substantially increasing the proportion of our revenues that is generated from recurring, SaaS revenue streams. As the acquisition is being funded primarily with cash on hand and borrowings under the Company’s proposed credit facility led by JPMorgan Chase Bank, we expect that the transaction will increase intrinsic value per share for our shareholders.
Stamped offers a leading suite of software which enables Shopify merchants to collect and feature customer reviews and product ratings, and to create their own loyalty and rewards programs, which facilitate customer conversion and retention. Despite Stamped’s leadership position, we believe there are substantial opportunities to optimize the company by accelerating customer acquisition and deploying WeCommerce best practices at the company.
“The Stamped acquisition meets all of our strategic and economic objectives. We are looking forward to sharing the merits of this highly strategic and value-creating addition to WeCommerce once the transaction closes,” said Chris Sparling, CEO of WeCommerce.
About WeCommerce Holdings Ltd.
WeCommerce is a Canadian ecommerce technology holding company that owns a family of companies and brands in the Shopify partner ecosystem, including Pixel Union, Out of the Sandbox, Yopify, SuppleApps, Rehash and Foursixty. The Company’s primary focus is to build, grow and acquire businesses that serve the Shopify Partner ecosystem. These businesses consist largely of SaaS, Digital Goods and Services businesses. Generally, these businesses build Apps and Themes and run Agencies that support Shopify merchants.
WeCommerce is focused on acquiring businesses with growth potential, a sustainable competitive advantage and that are, or have the potential to become, a leader within their particular market. The Company targets businesses within the Shopify ecosystem due to its confidence in the Shopify platform, the fragmented nature of the ecosystem and the attractive economics that the businesses generally exhibit. As one of Shopify’s first partners since 2010, WeCommerce believes it is well positioned to continue to identify acquisition opportunities in the Shopify Partner ecosystem.
For more about WeCommerce, please visit https://www.wecommerce.co/ or refer to the public disclosure documents available under WeCommerce’s profile on SEDAR at www.sedar.com. Further information regarding the Company’s strategic rationale for the acquisition of Stamped are contained in a presentation prepared by the Company, available at https://investors.wecommerce.co/.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and forward-looking statements in this news release includes, but is not limited to, information and statements regarding: whether and when the acquisition of Stamped will be consummated; the anticipated benefits of the acquisition of Stamped; the Company’s revenue, cash flow and operating margin upon completion of the acquisition of Stamped, including the Company’s expectation that the acquisition will substantially increase the proportion of its revenue generated from recurring subscription revenue; the expected completion of the audited financial statements of Stamped; the Company’s belief that there are substantial opportunities to optimize its existing business by accelerating customer acquisitions; the Company's belief that the acquisition of Stamped will be highly accretive to shareholders; the Company’s ability to satisfy the conditions to drawdown under the credit facility; the Company obtaining and/or satisfying customary approvals and conditions for the acquisition of Stamped and the closing of the credit facility; and expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: the parties' ability to consummate the acquisition of Stamped; the ability to receive, in a timely manner and on satisfactory terms, all necessary regulatory, and other third party approvals; the ability of the parties to satisfy, in a timely manner, all other conditions to the closing of the acquisition of Stamped; the diversion of management time on the acquisition of Stamped; assumptions concerning the acquisition of Stamped and the operations and capital expenditure plans of the Company following completion of the acquisition; credit, liquidity and additional financing risks for the Company and its investees; stock market volatility; changes in e-commerce industry growth and trends; changes in the business activities, focus and plans of the Company and its investees and the timing associated therewith; the Company's actual financial results and ability to manage its cash resources; changes in general economic, business and political conditions, including challenging global financial conditions and the impact of the novel coronavirus pandemic; competition risks; potential conflicts of interest; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; the risks and uncertainties associated with foreign markets; and the other risk factors more fully described in the Company's filing statement dated November 30, 2020 prepared in connection with its qualifying transaction, which has been filed with the Canadian securities regulators and is available on the Company's profile on SEDAR at www.sedar.com
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.
Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210309006107/en/
Evan Brown, Chief Financial Officer
evan@wecommerce.co
250-888-9424