|By Marketwired .||
|August 13, 2013 04:30 PM EDT||
TORONTO, CANADA -- (Marketwired) -- 08/13/13 -- Intertainment Media Inc. ("Intertainment" or the "Company") (TSX VENTURE:INT)(OTCQX:ITMTF)(FRANKFURT:I4T) is pleased to announce that Mr. David Lucatch, CEO of Intertainment and Yappn Corp. ("Yappn"), has been appointed the President and CEO of Ortsbo Inc. ("Ortsbo"), a subsidiary of Intertainment, replacing Mr. Patrick Bultema effective immediately. All other senior staff at Ortsbo remain in place and active in business activities and client programs.
The transition of Intertainment to a focused strategy of managing technology assets, investments, and incubation, the growth of Yappn, and the natural synergy between Ortsbo and Yappn, has enabled a closer working relationship and an opportunity for greater operational efficiency. As such, at this stage and until Ortsbo operates independently outside of Intertainment, a combined leadership will provide the required support for each of the independent management teams to achieve growth objectives on the most efficient basis.
Ortsbo continues to move forward with its spin out strategy and has recently received both an expression of interest and multiple offers to divest of the division. To date, the Company has found the expression of interest and an offer from a China based company, based on available information, to be substantially below the invested value of the Company which it believes is not in the interest of the shareholders. Management and the board will report on any substantive progress in this area.
The Ortsbo team continues to focus on its core programs including Global Customer Care, Gamification and select social activities, and will also continue to develop key revenue growth areas including broadcast content opportunities given the April 2012 US FCC rule changes requiring closed captioning for an online content broadcast.
To date, contracts between Ortsbo and industry leading clients have been executed and have initiated revenue. Ortsbo has completed its Customer Care proof of concept trials and is in the process of rolling out its first stage clients, of which further information is forthcoming. Ortsbo is also providing development support for a number of new technology and broadcast opportunities which it anticipates will lead to further commercial success.
With the recent development and spin-out of Yappn (www.yappn.com), Ortsbo will also be tasked with providing further support in the development of the consumer side of the global communications arena. The synergies between Ortsbo and Yappn remain strong and Intertainment is looking at further ways to capitalize on this strengthening relationship.
"Ortsbo has the promise of creating a revolutionary change in global communications at both the commercial and consumer level. We have seen success in the entertainment arena with companies like FOX, Disney and Marvel and have recently started to see great opportunities for commercial success," said David Lucatch, President and CEO of Ortsbo. "While Ortsbo has had limited commercial revenue to date, the team believes that it has proven its value proposition across a number of business sectors and our focus is to close deals and create growth opportunities with tangible revenue results."
Intertainment has also been focused over the past several months on streamlining its incubation suite, reducing costs and working to achieve commercial success across all its product lines. These changes include both product and personnel changes across the entire Company. Earlier this year, Intertainment sold one of its earliest programs, itiBiti, to a private technology group and has seen an increase in revenue through that organization and recently sold its interest in Poynt to Sprylogics for a profit. Given the change in programs and the focus towards a streamlined approach to its internal operations of business units, Mr. Brad Parry, the former Chief Marketing Officer of Intertainment, is no longer with the Company. Mr. Kevin Shea has resigned as a director. We wish them well in their future endeavors.
Given the general climate of the Canadian markets, the Company has focused its current interest in the US with Yappn and Ortsbo; however, the Company continues to review its capital strategy programs. The Company has not completed the private placement announced on June 20, 2013 (placement of up to $3,500,000 worth of debenture units); however, the Company is extending the offering, subject to regulatory approval, as it increases its internal funding programs from revenues and sales of assets to further manage the business.
About Intertainment - www.intertainmentmedia.com
Intertainment is one of Canada's leading technology incubators and is focused on developing, nurturing and investing in both North American and global technologies and companies that provide technology solutions for brands and consumers alike. Intertainment also owns and operates a number of key properties including Ortsbo, Deal Frenzy, The Sweet Card and Magnum, with investments in leading edge technologies and social media platforms including theaudience.com, capthat.com and Yappn.com. For more information on Intertainment and its properties, please visit www.intertainmentmedia.com.
Intertainment is headquartered in the Toronto, Canada region, with offices in New York, Los Angeles and San Mateo, CA and is listed on the TSX Venture Exchange under the symbol "INT" (TSX VENTURE:INT) and in the US on the OTCQX Market under the symbol "ITMTF". Intertainment is also traded in Europe on the Open Market (Regulated Unofficial Market) of the Frankfurt Exchange through the XETRA trading platform under the symbol "I4T".
Forward Looking Information
This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law, including statements relating to the expected use of proceeds of the Offering.
Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.