"An investment in knowledge pays the best interest."

ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE NEXALOGY ENVIRONICS

 

Everfront Ventures Corp. (EVC.C) has entered into a definitive purchase agreement to acquire 9172-8766 Quebec Inc. (doing business as Nexalogy Environics), a business intelligence and data analysis provider through its artificial intelligence (AI) platform to government agencies and Fortune 500 corporations. Further details were announced in the Company's press release dated July, 4, 2017.

"We are excited to have Nexalogy join our team," said Andrew Ryu, CEO and Chairman of the Company. "The acquisition of Nexalogy is a key strategic step for the Company. The vertical integration of Nexalogy will play an important role in our ability to further develop our technological platform with enhanced artificial intelligence ("AI") capabilities and to significantly expand our presence in the retail and public sector markets."

Details of the Transaction and Conditions to Closing

Pursuant to the Purchase Agreement, Everfront will acquire all of the issued and outstanding common shares of Nexalogy and of 9225-6965 Quebec Inc., an affiliate of Nexalogy, for an aggregate purchase price of $6 million (subject to debt adjustments at closing) of which: (i) $2.7 million in cash and $2.7 million in common shares of the Company (priced at a volume weighted average price of the common shares of the Company for the twenty (20) trading day period prior to closing) will be paid on closing; and (ii) $600,000 will be paid over a three year period upon Nexalogy achieving certain agreed-upon revenue milestones. The Transaction is anticipated to close on or about November 20, 2017.

The completion of the Transaction remains subject to a number of terms and conditions including, among other things:

Everfront and Nexalogy obtaining all necessary consents, orders and regulatory approvals, including the final approval of the TSX Venture Exchange which has granted conditional approval no material change occurring to the business of Everfront or Nexalogy; the delivery by each of the parties of standard closing documents.

Nexalogy Business

Nexalogy's patented solutions provide valuable insight and analysis from a variety of data sources, giving governments and corporations a unique tool to analyze information and make informed decisions in the following areas; policy making, stakeholder analysis, social risk assessment, social license to operate, marketing, and overall operations. Nexalogy's proprietary algorithms, when merged with traditional business intelligence, provide an innovative platform leveraging machine learning, social data intelligence and social Internet of Things ("IOT") technology to redefine data analysis. Nexalogy has key government agencies and corporations as clients and is poised for significant growth.

Nexalogy is emerging as a leader in the Business Intelligence ("BI") marketplace with a strong focus in social data analysis. According to "Markets and Markets", a flagship competitive intelligence and market research firm serving 1700 global fortune enterprises, the Social Media Analytics Market is forecast to grow to 5.4 Billion USD by 2020. This rapid growth is due to the transition from traditional BI techniques to advanced analytics as well as the surge in the number of social media users and data.

Everfront plans to continue developing machine learning models for conversational user interfaces. A unique feature set will leverage the newest technologies with an artificial intelligence ("AI") offering that will provide government agencies key solutions to manage initiatives that are integral to countries across the world as well as to provide a unique offering in areas like the retail market. The Company intends to offer retailers a robust data analysis platform through the combination of its DataTap solution, which captures valuable Point of Sale ("POS") information, and Nexalogy's proprietary software. The combined technology will provide users competitive insight that Everfront believes will become dominant in the retail BI marketplace for years to come.

About the Company

Everfront is the publicly traded holding company of Datametrex Limited ("Datametrex"). Datametrex offers a plug and play solution for vendors. The Company extends the life of POS terminals without having to upgrade to new cloud-based devices through its DataTap technology. DataTap captures all data sent from the POS to the receipt printer and then sends it to the cloud, so it can be presented in a dashboard for management to monitor key pertinent information.