Alanco Technologies announced that it has executed a
definitive agreement to merge with YuuZoo Corporation,
a global provider of mobile targeted social networks, targeted advertising and
mobile payment systems.
Since its founding in 2007, YuuZoo has grown rapidly and
profitably, reporting preliminary, unaudited sales and net income of $17.0
million and $1.0 million, respectively, for its prior fiscal year 2010, ended
December 31, 2010, compared to sales of $2.0 million, and a loss in 2009. Sales
for the current fiscal year 2011 are projected to exceed $30 million, with
continued profitability growth.
YuuZoo’s technology provides a platform and internet content
developed specifically for access via mobile phone handsets.
YuuZoo’s subsidiary YuuPay enables mobile consumers to
pay directly to mobile merchants, eliminating expensive carrier-billing.
YuuPay, in 2010, processed worldwide transactions averaging more than $100
million per month.
YuuZoo’s strategic focus has been on the world’s
fastest-growing and most populous markets: India, China, South East Asia, the Middle
East and Africa. In these markets mobile phone market penetration is
accelerating far beyond land line utilization. The mobile phone, therefore, has
become the most economical and, usually, sole link with the internet for
hundreds of millions of consumers.
YuuZoo has created a unique franchise and license program
for the mobile world, which enables the Company to launch its services with
both minimal upfront costs and immediate profitability, in any local market
YuuZoo already has approximately two million registered
users in over 150 countries worldwide, and license agreements in place for more
than 30 countries, including the Middle East, India, Indonesia, the UK, Saudi
Arabia, Australia, the Philippines and, recently, the USA, with a combined
consumer base of more than 1 billion people.
YuuZoo has established strong partnerships with leading
local players in key markers. This has given the Company a first-mover
advantage, and has created strong barriers to entry for any competitor trying to
duplicate YuuZoo’s market entry model.
Under terms of the definitive merger agreement, Alanco
will issue approximately 34 million common shares to YuuZoo shareholders in
exchange for 100 percent of outstanding YuuZoo equity interests, resulting in
Alanco shares outstanding totaling approximately 39 million.
Upon close of the merger transaction, current YuuZoo and
Alanco shareholders will own 88 percent and 12 percent, respectively, of the
new company’s outstanding common stock.
This merger represents a unique opportunity for Alanco’s
approximately 2,700 shareholders to participate in one of the fastest-growing
market opportunities of our lifetime – the mobile internet. Our merger partner,
YuuZoo Corporation, is a global pioneer in this new market with a world-class
management team, and a brief, but convincing, track record of strong growth and
profitability,” said Robert R. Kauffman, chairman and CEO, Alanco.
We are truly excited with this opportunity to showcase
our unique business plan and proprietary technology to U.S. investors and a
broader global business audience that will be available to us through a NASDAQ
listing. YuuZoo management and board are fully committed to maximizing our
long-term shareholder value, and we believe that YuuZoo will perform quite well
in the U.S. public market,” said Thomas Zilliacus, executive chairman and CEO
By Telecomlead.com Team