TORONTO – iSIGN Media Solutions Inc. won’t be acquiring POS Canada Inc.
iSIGN, a provider of interactive mobile advertising solutions, announced yesterday that the deal with privately held POS Canada, a point-of-sale supplier to the corporate hospitality and retail industry, is dead.
Announced in late May, the agreement called for a straight stock exchange of iSIGN shares for POS Canada shares. iSIGN noted a delay in the deal in late July, as “there are a number of documents to be finalized, as well as a number of outstanding matters relating to the Definitive Purchase Agreement.”
However, iSIGN said, in a news release yesterday, that both sides couldn’t agree on the number of iSIGN shares to be issued for the acquisition “without unduly diluting the stock relative to the current book value of the assets being acquired.
“There were, in addition, other operational, economic and funding conditions affecting the financial viability of the acquisition that were not satisfactorily settled,” the statement continued.
“We are disappointed that the negotiations went on for so long and that ultimately we were unable to come to terms on this acquisition,” said Alex Romanov, iSIGN CEO. “Acquiring POS would have been mutually beneficial for both of us. Unfortunately, the decrease in our share price at the start of last week did not help us in regards to moving forward with the acquisition.”
In addition to its mobile-advertising solutions, iSIGN also operates iSIGN Media Network Corp., which owns and services a digital-signage network with 6,000 digital screens in Canada and the United States. It connects to more than 1,400 locations and broadcasts to a wide range of businesses and municipalities.
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