Visionstate Finalizes Terms for the Acquisition of Artificial Intelligence Developer, Chatbot Incubators
EDMONTON, ALBERTA December 20 2017 -- Visionstate Corp. (TSX VENTURE: VIS) ("Visionstate" or the "Company") is pleased to announce that it has finalized the terms for the acquisition of Montreal-based 10384801 Canada Inc., doing business under the name “Chatbot Incubator” (“Chatbot”) (the “Transaction”).
The terms of the proposed Transaction include the issuance of common shares of Visionstate to the shareholders of Chatbot Incubator as consideration for the acquisition. Approximately 30% of the shares held by Chatbot shareholders will be purchased in exchange for 4,000,000 common shares of Visionstate at a deemed price of $0.065 per common share, for the consideration of $260,000. Visionstate will have the option to acquire the remaining 70% of the shares held by current Chatbot shareholders in exchange for a further 9,000,000 common shares of Visionstate, also at a deemed price of $0.065 per share for further consideration of $585,000. The total acquisition price will be $845,000 in the event Visionstate exercises its option which will expire in 180 days after the closing of the initial 30% purchase. The parties are at “arm’s-length” and no insiders will be created as a result of this Transaction.
The Transaction marks Visionstate’s first move towards growing the business through M&A activity. "We are extremely pleased to have finalized the terms of this transaction with Chatbot Incubator,” said Visionstate Corp. CEO, John Putters. “This deal sets the stage for the aggressive growth strategy we are putting in place that will focus on identifying and developing relationships for potential mergers and acquisition deals with up and coming companies working in emerging industries.”
Chatbot Incubator specializes in applications for artificial intelligence (AI), particularly in customer service delivery and sales and marketing. AI technology from Chatbot Incubator will be leveraged for Visionstate's CINDI product, a digital in-room device that delivers concierge services to customers and tracks guest supplies used by housekeeping staff. Visionstate will also explore and develop opportunities to bundle the AI with its interactive directories to replicate customer service in the retail and office building environments.
“We couldn’t be happier with this deal,” said Chatbot Incubator founder, David Weiser. “Not only does it bring our corporate structure to a whole new level, but it also allows us to be a part of what looks to be a promising ecosystem of companies. We will be able to leverage each others’ skill sets to accelerate the growth of each business entity, while contributing to Visionstate’s overall success.”
Visionstate Corp.’s objective is to diversify the Company’s product portfolio by investing in high growth opportunities in areas such as artificial intelligence. The Company looks for technologies that are synergistic to Visionstate’s existing product portfolio in analytics, interactive customer service, and IoT applications designed to streamline operations.