Sharkreach Inc (OTCMKTS:SHRK) has reached an agreement for the acquisition of Mastermind Involvement Marketing LLC. News of the acquisition first erupted on April 7, 2016 after the millennial influence marketing company announced it had entered into an offer letter to purchase 100% stakes. The cash and stock transaction calls for the merger of the two companies in a transaction that will result in the advertising and marketing agency operating as a subsidiary of the parent company.
Terms of Agreement
In a press release on July 17, SharkReach says it paid $16 million to acquire 100% rights into Mastermind Involvement Marketing. The transaction is still dependent on SharkReach entering into definitive employment agreements as well as lock up agreements with MIM’s principals. The deal will also close on the completion of an ongoing audit.
Mastermind will join SharkReach having operated as an independent company for over 30 years with important business connections that should benefit the parent company. The advertising company boasts of business connections with the likes of Home Depot Inc (NYSE:HD), Macy’s Inc (NYSE:M) and Georgia Pacific.
Buoyed by the acquisition SharkReach CEO, Steve Smith, expects MIM acquisition to provide them with immediate access to Fortune 100 clients in a variety of Industries. The same should lead to exciting opportunities in the marketing and integrated data services business. Smith also expects the transaction to bolster the parent company’s cash flow given the acquisition’s steady revenue stream and stellar management team.
Separately SharkReach has confirmed the appointment of Mark J. Gustavson and Jake Kovalcik as new board members. Kovalcik joins the company with vast experience in media startups. He is expected to play a key role in product and business development as well as sales. In a press release on July 13, 2016, the company confirmed that the two would serve the board on one-year terms each.
Gustavson who is to double up as Sharkreach Inc (OTCMKTS:SHRK) chief financial officer joins the board with 17 years’ experience in business development, transactional and alliance management. He joins the company having spearheaded more than a dozen transactions worth more than $180 million.
SharkReach acquisition drive has hit top gear, the advertising company having confirmed the signing of a letter of Intent on August 29, 2016 for the acquisition of a second full service advertising agency. The company is to pay $13 million for the unnamed advertising agency based in Boston.
The cash and stock transaction is made up of $7 million in earn outs and an additional $5 million in stock to be paid over a three year period.