Logiq Reports Continued Progress with Major Corporate Initiatives, with Strong Outlook for 2023 on Track
NEW YORK, Aug. 25, 2023 (GLOBE NEWSWIRE) — Logiq, Inc. (OTCQX:LGIQ), a leading provider of digital consumer acquisition solutions, provided a shareholder update today on its progress with a number of major corporate initiatives, including its pending merger transaction with ABRI SPAC I, Inc.
Q2 2023 Results: Logiq reported revenues of approximately $4.86 million for the second quarter ended June 30, 2023, increasing 37% sequentially and up 47% compared to results from continuing operations in the same year-ago quarter. A new major consumer product client signed in November 2022 has transitioned to Logiq’s programmatic advertising platform which should generate high-margin revenues. The associated credit facility to enable the ramp up of this business is dependent upon a listing on a senior stock exchange. The company believes the pending SPAC transaction with Abri SPAC I will provide such a listing, with this supporting its continued outlook for the annualized revenue run rate generated by its DataLogiq (DLQ) business to exceed $70 million by year-end.
DataLogiq (DLQ) Subsidiary SPAC Merger: The company has continued to progress toward the completion of the SPAC merger. Logiq and the SPAC have completed their response to an additional round of comments received from the Securities and Exchange Commission (SEC) regarding the merger and Form S-4 filing which was submitted on August 14, 2023. Typical SPAC transactions have been averaging 10-12 months for completion, and the process for Logiq’s SPAC merger is currently at 10 months.
Post-DLQ SPAC Plans: The company believes the currently struggling IPO market increases the attractiveness and value of public reporting companies like Logiq and particularly for M&A candidates looking to access to the capital markets. The previously announced merger exclusivity offered to the PrivCo announced in November expired on December 31, allowing Logiq to pursue negotiations with other potentially more favorable private companies looking to go public. The ideal target would enable Logiq to qualify for a listing on a senior stock exchange. Management is currently in late-stage discussions with several target companies that are greater in valuation than the aforementioned PrivCo.
Strategic M&A: Over the last several years, Logiq has pursued an aggressive strategic M&A program, with two acquisitions under DLQ which were accretive and have continued to scale. Battlebridge, for example, secured a major customer win late in 2022 that is contributing significantly to revenues, and with this driving a substantial margin expansion. The current industry environment continues to present accretive M&A opportunities that could contribute to significant revenue growth if completed. Given the ‘target-rich’ landscape, the company is evaluating several potential acquisitions that could create an exciting platform for customers, strategic partners and investors.
Park Place Payments: Business is solid, although the funding environment has been challenging and growth is dependent upon funding. The SPAC transaction is expected to bring better funding opportunities as well as jumpstart growth across the board. Park Place’s model is highly transferrable to emerging markets and there are several opportunities Logiq is exploring in SE Asia and two African nations. Additionally, there are two new product lines Logiq is planning to launch through Park Place’s nationwide sales force later this year, including a new SME loan program.
According to Logiq CEO, Brent Suen: “We continued to be in active discussions with M&A targets involved in Adtech, direct-to-consumer sales, specialized digital advertising, and performance marketing. All are generating revenue growth and are break even to profitable. Our goal with the acquisition of such targets are for Logiq to realize revenues well in excess of current levels.”
Logiq Inc. is a U.S.-based provider of e-commerce and digital customer acquisition solutions by simplifying digital advertising. It provides data-driven, end-to-end marketing through its results solution or providing software to access data by activating campaigns across multiple channels.
The company’s Digital Marketing business includes a holistic, self-serve ad tech platform. Its proprietary data-driven, AI-powered solutions allows brands and agencies to advertise across thousands of the world’s leading digital and connected TV publishers. For more information, visit www.logiq.com.
Important Cautions Reading Forward-Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the Safe Harbor created by those sections. This press release also contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation that relate to Logiq’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release. Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In particular and without limitation, this press release contains forward‐looking statements regarding the consummation of our DataLogiq segment’s proposed SPAC merger, our products and services, the use and/or ongoing demand for our products and services, expectations regarding our revenue and the revenue generation potential of our products and services, our partnerships and strategic alliances, potential strategic transactions, the impact of global pandemics (including COVID-19) on the demand for our products and services, industry trends, overall market growth rates, our growth strategies, the continued growth of the addressable markets for our products and solutions, our business plans and strategies, and other risks described in the Company’s prior press releases and in its filings with the SEC including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation that are available on www.sedar.com, including under the heading “Risk Factors” in the Company’s Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Logiq to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
Brent Suen, CEO
Logiq Investor Relations:
Tel (949) 432-7566
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