Pittsburgh, PA, April 20, 2023 (GLOBE NEWSWIRE) -- FOMO WORLDWIDE, INC. (US OTC: FOMC) has agreed to acquire Business Media Solutions, Inc., (“BMS”; www.intratrain.com & www.inspectitrac.com) a provider of online learning, digital marketing, education content, and platform management services. BMS serves companies in agriculture, food manufacturing, and animal health by creating customized programs for training staff, distribution, operations business processes, compliance, and safety. The Company’s inspection management systems train and test employees, provide documentation of compliance and corrective actions, mitigate risky outcomes, and reduce unsafe, non-conforming actions and behaviors. BMS’ sales processes, customer service support, and content and delivery systems help adults learn the tools of their trade, engage employee audiences, and enhance knowledge transfer and skills development that are critical to industries often subject to regulation and oversight. These verticals include BMS core competencies in agriculture, food, and beverage that can be applied to manufacturing, K12 and post-secondary education, healthcare, and more.
BMS, which was founded in 1980, has historically generated profitable annual revenues of several hundred thousand dollars with peak top line of $1.2 million. The entity, whose run rate is now below pre-pandemic levels and at break-even, is able to expand to new areas across the United States by adding regional sales and corporate development staff. This should naturally increase business by taking the company’s existing solutions to large agriculture markets such as California and Florida. Management’s near-term goal is to return the business to prior peak business levels aided by such geographical expansion.
The BMS purchase is now a definitive agreement subject to closing next month. Consideration of $285,000 is composed of the following: 1) $110,000 cash due on or before May 17, 2023, 2) $35,000 due July 1, 2023, 3) $75,000 cash due January 1, 2024, 4) a $15,000 performance based earnout driven by expected gross profit improvement with no cap, and 5) $5,000 in Series B Preferred equity priced in common stock at $0.001. To show its commitment to closing the transaction, FOMO has made a non-refundable deposit of $15,000 cash and paid $5,000 in non-cancelable restricted preferred stock to the seller. BMS management has agreed to operate the business for one to two years, but we are interviewing candidates with large corporate experience to strengthen BMS business development and provide a transition plan for the owner. FOMO’s other signed acquisition targets in LMS and enterprise content creation are part of management discussions as a global organization is constructed.
Addressing Multi-Billion Dollar Enterprise E-Learning Market:
According to a comprehensive research report by Market Research Future (MRFR), “Corporate E-learning Market Research Report, by technology, by training type - Forecast till 2030”, this sector will reach a valuation of $117.5 billion by 2030, growing at a 15.6% CAGR during the forecast period (2020-2030):
https://www.globenewswire.com/en/news-release/2022/09/27/2523613/0/en/Corporate-E-learning-Market-Worth-USD-117-57-Billion-at-a-15-60-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html#:~:text=filingsmedia%20partners-,Corporate%20E%2Dlearning%20Market%20Worth%20USD%20117.57%20Billion%20at%20a,by%20Market%20Research%20Future%20(MRFR)
Management Commentary
Said BMS owner Jerry Van Oort: “Adaptability of platforms and content catalogs to new market verticals and geographies positions the combined companies well for growth in this new normal where training programs and compliance and inspection/audit processes are all moving online. Growing sales in each new market vertical and geography should be accelerated by creating packages of products and services from the brands to fit the target market segment. Further, we will pursue a dual-pronged strategy of selling through established distributors and consultants and a direct B2B channel of sales using business development specialists. Customizing courses, materials, and platform features to create each solution will add to the value proposition. Combining BMS with FOMO and its series of planned acquisitions will help set BMS on a course to achieve its true upside potential as part of a much larger organization serving multiple industries in multiple markets in the U.S. and abroad.”
Said Vik Grover, FOMO’s CEO: “The BMS purchase provides our Company accretive revenues and margin, a platform for growth and expansion into high growth markets, and potential synergies with our portfolio of investments. We intend to leverage BMS as a beachhead into online training and compliance and expand into new verticals worldwide to multiply its scope and scale. We are pot committed to this purchase as a major step towards building this FOMO business unit into a contender in the online training, content, and compliance vertical. I have now asked our other acquisitions under letter of intent to open up their engines and disclose their business plans publicly to our investors. BMS is the first in a series of planned transactions that marks a new period for our organization as we transition from value-added solutions for K12 schools to online enterprise content, training, and compliance generating high margin recurring contractual revenues supporting strong growth and a higher valuation multiple.”
About FOMO WORLDWIDE, INC.
FOMO WORLDWIDE, INC. (https://www.fomoworldwide.com/) 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 targets access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.
About Business Media Solutions, Inc.
Business Media Solutions, Inc. (www.intratrain.com & www.inspectitrac.com) is a training, testing, inspections and management systems company specializing in helping companies in the food, agribusiness, animal health and nutrition, and general industries, grow and realize a positive return on their investment. The BMS approach can result in better trained employees, reduced risk, lower costs, and improved ROI.
About SMARTSolution Technologies L.P.
SMARTSolution Technologies L.P. (https://smarterguys.com/), a wholly owned subsidiary of FOMO WORLDWIDE, INC., is a Pittsburgh, PA–based audiovisual systems integration company that designs and builds presentation, teleconferencing and collaborative systems for businesses, education, and nonprofits including almost 200 school districts with hundreds of buildings and 200,000 students. SST is a leader in interactive display technologies for use in all types of curriculums and has been providing education technology solutions for over 27 years.
About CLEANSolution Technologies
CLEANSolution Technologies (https://www.cleansolutiontech.com/), also doing business as Energy Intelligence Center LLC, a wholly owned subsidiary of FOMO WORLDWIDE, INC., has over 10 years of experience in clean technology and energy efficiency technologies. CST offers clean air disinfection, LED retrofit, and HVAC management technologies and services with a focus on promoting clean air and higher energy efficiency levels in multi-family, commercial, and industrial buildings.
Forward Looking Statements:
Statements in this press release about our future expectations, including without limitation, the likelihood that FOMO WORLDWIDE, INC. will be able to meet minimum sales expectations, be successful and profitable in the market, bring significant value to FOMO’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. Additionally, although the Company has announced letters of intent to acquire additional companies, there is absolutely no assurances that any such transactions will result in a completed acquisition. 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.
FOMO WORLDWIDE, INC.
Investor Relations
(630) 708-0750
IR@fomoworldwide.com
