Vancouver tech deal: LX Ventures to buy Strutta
One Vancouver tech company has agreed to buy another.
The deal, announced today (December 12), will see LX pay $525,000 in cash and issue 4,687,500 common shares to the security holders of Strutta. If Strutta meets certain revenue targets, LX may issue up to 9,375,000 more common shares.
According to a news release from LX, the transaction is subject to final documentation, regulatory approval, and due diligence.
"Strutta's team and technology platform can convert social media traffic at dramatically higher rates than traditional online advertising. The combination of Strutta's monetization engine with Mobio's social traffic positions LX Ventures to have the most valuable ad inventory on the Internet," said Maura Rodgers, who cofounded Strutta with Danny Robinson, in the release.
Mobio, along with Fodio and Sosido, is one of the tech firms owned by LX, whose CEO is Mike Edwards.
This morning, LX shares were down 4.35 percent to 66 cents on the TSX Venture Exchange. At that price, 4,687,500 shares are worth $3 million.