DATABLE TECHNOLOGY ANNOUNCES LOI TO ACQUIRE LOCAL MARKETING SOLUTIONS GROUP

VANCOUVER, B.C., Sept. 30, 2022 /CNW/ - Datable Technology Corp. (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable") the developer of a proprietary, SaaS-based Consumer Lifecycle and Data Management Platform called PLATFORM3, announces that it signed an LOI ("LOI") to acquire (the "Acquisition") 100 percent ownership of Local Marketing Solutions Group, Inc.("LMSG") on September 23, 2022. Under the LOI, Datable will also enter into a partnership (the "Partnership") with MoneyMailerUSA, Inc. ("Money Mailer"), a company affiliated with LMSG, to cross sell current products, and develop a version of PLATFORM3 for the U.S. small and medium sized business ('SMB") market.

LMSG's management estimates revenues of over C$14 million and positive EBITDA in 2022 and has commenced an audit of its financial results pursuant to the Acquisition. The combined company is expected to have pro-forma 2022 consolidated revenues of over C$18 million and be positioned for strong growth and positive EBITDA in 2023.

LMSG provides marketing solutions and technology to national and international brands that drive revenue through local sales and marketing channels across the U.S. LMSG offers marketing automation technology and a comprehensive set of supporting marketing services and allowing corporate marketing control of brand image while facilitating dissemination of product and service content and materials for local channels. LMSG's customers include some of the largest global companies and thousands of SMBs across the U.S.

Money Mailer is a full-service marketing company providing premiere print and digital marketing solutions to local and national businesses and is a recognized leader in the direct marketing industry. Money Mailer delivers the best local deals from thousands of SMBs to affluent neighborhoods across the U.S. Today, Money Mailer reaches approximately 21 million consumers in over 8 million homes through a monthly red, white and blue shared mail envelope and digitally, through offer-based websites, a mobile coupon app, online advertising, and social media. In 2021, Money Mailer generated approximately US$41 million in revenues.

• The acquisition of LMSG will add a national sales and operations team in the U.S. and a complementary portfolio of marketing technology products and services. LMSG adds new large enterprise customers to Datable's growing customer base of the world's leading consumer goods companies and a customer base of thousands of SMBs. Datable and LMSG are now working on a version of PLATFORM3 that will provide compelling value to SMBs via a software-as-a-service subscription offering.
  
  
• New Revenue Streams. In addition to adding a channel for the U.S. SMB market, the Partnership with Money Mailer brings access to a national consumer community of approximately 21 million consumers with local demographic data. Datable's enterprise level customers have large annual budgets for targeted marketing to local communities. The combined company will have the critical scale to offer enhanced consumer data products that leverage PLATFORM3's tools to collect, analyse and monetize consumer data, LMSG's SMB customers, and Money Mailer's U.S. consumer community.
  
  
• Increased scale to enhance access to capital and human resources. The combined company is expected to have pro-forma 2022 revenues of close to C$18 million and be positioned for strong growth in 2023 and beyond. Datable believes that a larger scale provides easier access to lower cost growth capital. LMSG brings a strong team with a track record of managing growth in the U.S. consumer marketing space, and an infrastructure to attract and retain senior sales and product development professionals.

Under the LOI, Datable will acquire LMSG at a base value of C$14,350,000 by paying the owners of LMSG 287,000,000 common shares (the "Shares") of Datable at a deemed price of C$0.05 per Share. The LOI also contemplates the completion of the private placement first announced on June 20, 2022 and extended to October 4, 2022 pursuant to the press release dated September 1, 2022. The Definitive Agreement is expected to include terms customary to an acquisition including, but not limited to:

• A concurrent financing of C$2.0 million to fund the growth of the combined company,
  
  
• Employment agreements, including equity incentives for key members of the LMSG management team; and,
  
  
• Two of five directors of Datable to be appointed by LMSG.

Under the LOI the Definitive Agreement is to be signed no later than November 15, 2022 and the Acquisition is to be closed no later than March 15, 2023, unless extended by mutual agreement.

After the execution of the Definitive Agreement, it is expected the Acquisition will be subject to TSXV approval, completion of the financing set out above, and delivery of audited financial statements for LMSG.

"The acquisition of LMSG provides Datable with a national sales force, complementary products, thousands of SMB customers and the scale that facilitates access to capital and human resources," said Rob Craig, CEO of Datable. "We have been looking for the right partner to leverage the value of our SaaS consumer marketing and data platform. We can increase the scale and scope of our relationships with leading consumer brands using the products and services of LMSG and Money Mailer. In addition, we are already working on a version of PLATFORM3 that fits the budgets and needs of the thousands of SMBs that LMSG brings to the combined company."

"After another year of phenomenal growth and being named to the Inc 5000 Honor Roll of the fastest growing companies for five consecutive years, we are excited and ready to launch a new path of growth. The expanded reach into the greater North American Market and the access to capitalization as a public company will help us continue the growth and realization of servicing all the marketing needs of every company in North America, both at the National Brand and SMB levels," said Al Croke, President & CEO of LMSG. "Datable's solutions and team mesh with our product and service strategy perfectly and will provide greater opportunities to expand the solution sets with our current clients and open doors to additional client brand relationships."

Datable has developed PLATFORM3 a proprietary Consumer Lifecycle and Data Management Platform that is sold to global consumer brands. PLATFORM3 is delivered as a subscription service (Software as a Service model) and used by some of the worlds' most valuable consumer brands to access new consumer communities and engage them while collecting, analyzing, and managing their first-party data. PLATFORM3 incorporates proprietary technology to monetize the consumer data, including demographics and purchasing behaviour, by sending consumers targeted offers by email and text messages. For more information, visit datablecorp.com.

Local Marketing Solutions Group (LMSG), a holding company, was formed in 2012 by the executive management team of JGSullivan Interactive Inc. The purpose of the holding company, through merger and acquisition activity and organic growth, is to continue the expansion of offering the broadest and most efficient marketing solutions to national and international brands that drive revenue through local sales and marketing channels. LMSG provides marketing automation technology and a comprehensive set of supporting marketing services capabilities, allowing corporate marketing control of brand image while facilitating dissemination of product and service content and materials for local channels.

For additional information about the company please visit www.sedar.com. The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds and the results of financing efforts, – that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Datable Technology Corp.

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