Xigem Technologies Announces Completion of Acquisition of AI Powered Automotive Shopping Platform EchoDigital
Toronto, Ontario--(Newsfile Corp. - March 8, 2023) - Xigem Technologies Corporation (CSE: XIGM) (FSE: VZ6) ("Xigem" or the "Company"), a technology provider for the emerging remote economy, today announced that the Company has closed the previously announced acquisition of EAFdigital Inc. ("EchoDigital"), an artificial intelligence ("AI") driven, SaaS-fueled automobile shopping and delivery platform for the $1.5 trillion global used automobile market.1 The Company purchased substantially all of the assets of EchoDigital from EAF Group of Companies ("EAF GROUP" or the "Vendor") for aggregate consideration of $892,450 (the "Transaction").
EchoDigital is a SaaS-based platform using its proprietary AI to seamlessly generate leads from traditional sources. The EchoDigital AI assesses and qualifies the lead and determines the lead's psychological aptitude then matching it with the most suitable and qualified customer service/sales representative ("CSR"), as also determined by the AI, to complete the sale. EchoDigital is designed to optimize sales funnels and enhance conversion rates while reducing risk and spending on customer acquisition.
EchoDigital has delivered proven results in the automotive sales sector, and is readily scalable, customizable and applicable to almost any CSR-dependent sales system in a range of industry verticals.
"We expect EchoDigital to make an immediate financial contribution based on its current business, with potential growth from marketing the platform within the automotive sales space as well as other sectors," said Brian Kalish, co-founder and Chief Executive Officer of Xigem. "EchoDigital can be a source of competitive advantage for companies who wish to make use of the most advanced technology to efficiently and effectively increase their sales."
EchoDigital currently supports the EAF GROUP, a vertically integrated automobile sales, leasing, servicing, finance and warranty provider. Echo Auto Group, established in 2006, developed and began commercializing EchoDigital for its own use in 2018. Since then, EchoDigital has acted as the sales engine for several of the EAF GROUP's divisions, proving itself to be a cost reduction and sales driving tool. EchoDigital has been responsible for approximately 60% of the EAF GROUP's overall sales.
On the basis of unaudited financial results for the calendar year ended December 31, 2022, as well as the terms of a management agreement executed by the parties, EchoDigital is projecting receiving gross royalties of approximately $8.2 million, resulting in net royalty revenues of approximately $0.3 million, on EAF GROUP sales for the calendar year ending December 31, 2023.
Transaction Details
The Company has purchased assets of EchoDigital for consideration of 8,924,495 common shares of the Company (the "Shares"), in accordance with terms consistent with the asset purchase agreement (the "APA") executed on February 24, 2023. Based on the closing price of the Company's common shares on February 24, 2023, the Shares are valued at $892,450.
The Shares issued under the Transaction are subject to the customary four (4) month resale restriction under applicable securities laws as well contractual restrictions on trading, such that 50% may not be traded until five months after the closing of the Transaction, and the remaining 50% may not be traded until 10 months after the closing.
In addition to the Shares issued to the Vendor, a finder's fee of 892,450 common shares of the Company, representing approximately 10% of the value of the Transaction (the "Finder's Fee"), has been issued to an arm's-length party and is subject the customary four (4) month resale restriction under applicable securities laws.
EchoDigital will be operated as a wholly-owned subsidiary of the Company. Pursuant to a royalty and service-based management agreement executed by the parties, EAF GROUP will provide management services relating to EchoDigital, while EchoDigital will continue to support the sales efforts of the EAF GROUP, for at least 10 years.
The parties to the Transaction have entered into a voting support and lock-up agreement pursuant to which the recipients of the Shares have agreed to vote any Shares that they then hold in favour of Xigem's board of directors and management for a period encompassing each of the Company's next two annual meetings of shareholders, subject to certain limitations.
About Xigem Technologies Corporation
Established in Toronto, Ontario, Xigem is positioned to become a leading technology provider for the emerging near trillion-dollar remote economy, with software capable of improving the capacity, productivity, and overall remote operations for businesses, consumers, and other organizations. iAgent, the Company's patented technology, FOOi, its proprietary peer-to-peer mobile payments app, and EchoDigital, an AI-powered SaaS automotive shopping platform, are intended to provide organizations, businesses, and consumers with the tools necessary to thrive in a vast array of remote working, learning, shopping and treatment environments, while the Company looks to aggregate a portfolio of innovative technologies capable of disrupting traditional business models.
Instagram: @xigemtechnologies
Twitter: @XigemTech
Facebook: @xigemtechnologies
LinkedIn: www.linkedin.com/company/xigem-technologies
Further Information
The Company and the Vendor will provide further details in respect of the Transaction in due course by way of press release. The Company and the Vendor will make available all information as required by applicable regulatory authorities and will provide, in a press release to be disseminated at a later date, any additional required disclosure. All information contained in this press release with respect to the Company and EAFdigital was supplied by the parties respectively, for inclusion herein, without independent review by the other party, and each party and its directors and officers have relied on the other party for any information concerning the other party.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.
Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward- looking statements contained herein include, but are not limited to, statements regarding: the ability of the Company to continue adding innovative technologies to its portfolio.
Forward-looking information in this news release is based on certain assumptions and expected future events, namely: the Company's ability to continue as a going concern; the continued commercial viability and growth in popularity of the Company's and EchoDigital's applications; the Company's ability to continue to develop and acquire revenue-generating applications; continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the continued development of the Company's and EchoDigital's technologies; and the continued growth of the Company and EchoDigital.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the potential inability of the Company to continue as a going concern; the risks associated with the technology and data industries in general; increased competition in the technology, data and AI markets; the potential future unviability of the Company's and EchoDigital's product offerings; incorrect assessment of the value and potential benefits of the Transaction; risks associated with potential governmental and/or regulatory action with respect to the Company's activities; risks associated with a potential collapse in the value of data-related services; risks associated with the Company's ability to continue generating a profit; the inability of the Company to continue adding innovative technologies to its portfolio; and risks with respect to market demand for EchoDigital's products.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Xigem Technologies Corporation
On behalf of the Company:
Brian Kalish, Chief Executive Officer
For further information:
Phone: (647) 250-9824 ext.4
Investors: [email protected]
Media: [email protected]
Instagram: @xigemtechnologies
Twitter: @XigemTech
Facebook: @xigemtechnologies
LinkedIn: www.linkedin.com/company/xigem-technologies
EAF GROUP CONTINUES SOLIDIFYING STRONG PERFORMANCE AND IMPRESSIVE YEAR-OVER-YEAR MOMENTUM
EAF GROUP of COMPANIES Inc. (EAF) revenue is up 70% year-over-year, contributing $17.8M, as EAF executes ahead of plan.
Third quarter launch of EAF AutoProtect Warranty Division built a retail total of $1.3M which accounted for 7.32% of retail revenues.
TORONTO, CANADA - (MAY 4, 2022) - EAF GROUP of COMPANIES Inc. (EAF) reports strong consolidated financial results for the fourth quarter (Q4) and fiscal year (FY) ended December 31, 2021.
"EAF continued to demonstrate the consistency and dependability of its business model in 2021," highlighted by Themis Georges, EAF CEO and Founder, "Despite the historic impact of the pandemic and a competitive operating environment, we reported our second consecutive year of record revenue.”
“It is a function of both a strong performance and impressive year-on-year momentum improvement,” continued Mr. Georges. “We are uniquely positioned to capitalize on our scale and sustainability strategy.”
EAF AutoProtect Warranty Division accounted for 76% aftermarket product attachment contributing to greater confidence to both our valued customers and lending partners in their purchased assets.
“What EAF has put together isn’t completely revolutionary, however, the ingredients in our recipe are combined in a way that makes us unique,” said Sandy Hum, Director of Marketing & Operations, “The EAF Team has shown tremendous perseverance with strong performance indicators and operating results as we carry our momentum into 2022.”
“These are wonderful results and a credit to the hard work and dedication of all EAF employees.” Mr. Hum continued, “I am extremely proud of our team.”
About EAF GROUP of COMPANIES INC.
EAF GROUP of COMPANIES Inc. focuses on B2B and B2C financial services through divisions ECHO Auto Finance, ECHO Auto Group, AutoProtectTM, Northern Light Debt Relief and EAFdigital, all united in vision. By leveraging all the benefits of eco-system self-sustainability, the GROUP innovates, differentiates and generates sustained value for our clients and business partners.
EAF GROUP of COMPANIES INC. Announces Formation of Credit Counselling Division, Northern Light Debt Relief (NLDR) to its Stable of Companies
Toronto, Canada (Oct 1, 2021) - EAF GROUP of COMPANIES INC. is proud to announce the formation of its latest division Northern Light Debt Relief (NLDR) to its stable of companies.
Recognizing market trends and the contraction in economic activity impacting debt sustainability, particularly in low and middle-income households, the creation of credit counselling division Northern Light Debt Relief (NLDR) was the next step in EAF GROUP’s product offerings.
In addition to providing critical debt relief and liquidity support to consumers, NLDR is a perfect complement to EAF GROUP’s inbound offerings by eliminating the pain points of client acquisition and lowering related resources for even more integrated sustainability.
“We are significantly expanding our reach to deliver a wider range of omnichannel services to our clients,” said Jozef De Ruysscher, NLDR Managing Partner, “We very much look forward to contributing to the long-term growth of the EAF GROUP."
"This is an exciting milestone for our next chapter of growth," said Themis George, CEO & Founder of EAF GROUP of COMPANIES INC., "The combination of NLDR with our other offerings such as ECHO Auto Finance, AutoProtectTM, ECHO Auto Group and EAFdigital complements and continues to create significant value for all stakeholders."
"NLDR is a compelling opportunity for growth and market expansion," said Sandy Hum, Director of Marketing for EAF GROUP and Co-Founder of EAFdigital. "As NLDR transitions to complement all our offerings to drive sustainable, long-term growth for this exciting sector."
Visit: https://www.nldr.ca
About EAF GROUP of COMPANIES INC.
EAF GROUP of COMPANIES Inc. focuses on B2B and B2C financial services through divisions ECHO Auto Finance, ECHO Auto Group, AutoProtectTM, Northern Light Debt Relief and EAFdigital, all united in vision. By leveraging all the benefits of eco-system self-sustainability, the GROUP innovates, differentiates and generates sustained value for our clients and business partners.
ECHO GROUP of COMPANIES INC. introduces EAFdigital to it’s Family
Toronto, Canada (Oct 1, 2021) - EAFdigital is the connective arm that binds the ecosystem of the EAF GROUP OF COMPANIES INC.. Instead of a cycle of outside dependency, EAFdigital is the fintech solution provider that spearheads a wide range of self-sustaining services -- agency marketing, information architecture, content creation, design, and more -- dedication to improving operations with the express goal to support, sustain and holistically drive growth within all divisions.
EAFdigital supplies all divisions of the EAF GROUP with data-driven, customized focused solutions. Instrumental in streamlining processes and cost-efficiencies in each division, thus eliminating redundancies. EAFdigital’s fluidity to each division allows quick turnaround for stimulating all processes and capturing data to continually drive the EAF GROUP forward.
EAFdigital is a division of EAF GROUP OF COMPANIES INC.
About EAF GROUP of COMPANIES INC.EAF GROUP of COMPANIES Inc. focuses on B2B and B2C financial services through divisions ECHO Auto Finance, ECHO Auto Group, AutoProtectTM, Northern Light Debt Relief and EAFdigital, all united in vision. By leveraging all the benefits of eco-system self-sustainability, the GROUP innovates, differentiates and generates sustained value for our clients and business partners.
ECHO Auto Finance Announces Its Transformation into a Holding Company (EAF GROUP of COMPANIES INC.) and launching FinTech solutions company, EAFdigital
- Five subsidiaries under the umbrella of the new GROUP, focused on growth and innovation
- The transformation will reinforce EAF GROUP’s position as an attractive investment destination for investors
- This transformation establishes the necessary platform to realize the GROUP's strategic objectives and strengthen its infrastructure
Toronto, Canada (Oct 1, 2021) - EAF GROUP of COMPANIES INC. today announced its transformation into a holding group structure and reinforcing its capabilities in technology innovation by launching a dedicated applied fintech solutions division, EAFdigital. This transformation marks a new chapter in the Group's history and signals its readiness for expansion.
The EAF GROUP of COMPANIES INC., will become the parent company with a starting portfolio of five divisions: ECHO Auto Finance, a dedicated B2B dealer finance division, ECHO Auto Group, the company brick & mortar automotive inventory provider, AutoProtectTM, warranty product offering, Northern Light Debt Relief (NLDR) and EAFdigital -- a new innovative fintech services division, focusing on providing innovation and nascent solutions through pragmatic innovation.
The GROUP will benefit from the integration and synergies between its subsidiaries, ensuring efficient intra-group operations across the organization. The operational independence of each subsidiary will create an agile, fluid environment supporting rapid responses to evolving market trends. It will also facilitate the introduction of best-in-class services to all market participants, diversification of investment opportunities, and the continued development of its infrastructure, and future product offerings.
Themis Georges, Founder and CEO, said: "The transformation into this new structure under EAF GROUP OF COMPANIES INC., will support the continued growth of all subsidiaries and reinforce its position to achieve successful delivery, while aligned with the GROUP’s strategy."
"The transformation into a GROUP is part of our continuous development evolution. The development is focused on enhancing offerings, attracting investments and diversifying our portfolio,” said Sandy Hum, Director of Marketing and Co-founder of EAFdigital, “while supporting subsidiaries to achieve their ambitions, and providing access to attractive investment opportunities."
ECHO Auto Finance announces the launch of a new automotive warranty product, AutoProtect™ This new product means clients can purchase comprehensive warranty protection along with their vehicle purchase during the sales lifecycle.
AutoProtect™ initial launch will provide three comprehensive warranty plans for consumers to choose from to suit their needs during the vehicle purchase lifecycle.
"We couldn't be more excited to launch this great product", said Themis Georges, CEO & Founder of ECHO Auto Finance. "At ECHO, we are thrilled to offer AutoProtect™, our first (of many) product lines. As more customers rely on their vehicles during these unprecedented times, we're happy to provide our customers the opportunity to protect their purchase now and into the future. AutoProtect™ will play a big role in our ecosystem and helps us further our commitment to consumers."
"At ECHO we believe in the power of having strong relationships with our customers", said Sandy Hum, Director of Marketing. "We're extremely excited to launch new product opportunities, we feel AutoProtect™ is a wonderful match for consumers.”
ECHO Auto Finance and AutoProtect™ are divisions of EAF Group of Companies Inc.
For more info, visit: https://autoprotectwarranty.com/
ECHO Delivers Impressive 2020 Financial Results
Stronger Together...It has been a wild ride this year!
TORONTO, CANADA - (NOVEMBER 12, 2020) - Navigating a second year is always challenging, coupled with an unprecedented crisis like COVID-19 can have devastating impact on every part of the business. Reliable data underpins both crisis planning and response. The outcome? Wider and longer-term perspectives have helped ECHO’s emergence from the crisis even stronger and more sustainable.
ECHO demonstrated outstanding execution in a challenged environment with total sales of $10.5 million, an increase of 15% with only a 6% drop in funded vehicles.
"I would like to thank our talented employees for their commitment and focus to our customers during the global pandemic," Themis Georges, ECHO CEO and Founder. “The world has changed, yet I am singularly proud that ECHO did not lay off any talent during this crisis. Rather, ECHO added a second location and additional staff to continue momentum to grow, generate sales, and remain committed to our proven Total Growth Strategy."
“These record results demonstrate the strength and resiliency of our ECHO Team,” said Sandy Hum, ECHO Director of Marketing. “Supported by a predictable revenue framework, that we believe positions ECHO very well for future growth and market share gains."
“I am proud of the company's performance, we demonstrated outstanding execution in a challenged environment,” said Georges. “The guiding principles we established at the onset of the pandemic, combined with our ability to innovate rapidly, strong relations with Financial Institutions & Dealer Partners provided confidence in our robust operating outlook. Our strategies are working and I am confident that ECHO will emerge from the pandemic as a stronger and even more resilient company.”
I would like to thank our talented employees for their commitment and focus to our customers during the global pandemic, the world has changed, yet I am singularly proud that ECHO did not lay off any employee during this crisis. Rather, ECHO added a second location and additional staff to continue momentum to grow, generate new product platforms, and remain committed to our proven Total Growth Strategy.
I am proud of the company's performance, we demonstrated outstanding execution in a challenged environment. The guiding principles we established at the onset of the pandemic, combined with our ability to innovate rapidly, strong relations with Financial Institutions & Dealer Partners provided confidence in our robust operating outlook. Our strategies are working and I am optimistic that ECHO will emerge from the pandemic as a stronger and even more resilient company.
Stronger Together...
Strong Growth and Expansion for ECHO Auto Finance
TORONTO, CANADA - (JULY 21, 2020) - ECHO Auto Finance, a leading provider for alternative automotive lending in Ontario experienced record growth in 2020. The company is now expanding with more staff and a new second location.
This continued company momentum speaks to significant market opportunity and demand delivered by ECHO Auto Finance. ECHO’s continued growth directly ties to the strategic initiatives set in place, which has been increasing a robust customer sales base and delivery footprint along with expanding product portfolio and brand partnerships.
ECHO continues to work on innovative sustainable strategies that have allowed ECHO to retain and grow employee talent despite the current economic climate.
“ECHO’s unwavering commitment to engaging the dealer automotive sector has enabled us to grow more effectively,” said Themis Georges, CEO of ECHO Auto Finance. "Even during these unprecedented times, we continue to successfully execute our growth strategy. This expansion presents ECHO with a unique opportunity to significantly expand our footprint and continue strong momentum.”
ECHO’s rapid growth and expansion has positioned itself to meet massive shifts in mobility and consumer behavior. The deliberate approach ECHO has taken to bring solutions to targeted markets will continue to allow ECHO to thrive far beyond operating roadmap.
“ECHO has quickly become the trusted industry lender in Ontario, because of its dedication to its dealer partner network,” said Sandy Hum, Director of Marketing. “ECHO’s aggressive growth parallels what I experienced at Trend Financial when I joined. As a result, ECHO has emerged as an essential lender in Ontario. I’m very excited where ECHO occupies the auto lending sector in the coming months.”
About ECHO Auto Finance
Established in 2018, ECHO Auto Finance is a leading alternative automotive lending provider in Ontario with two locations in Ontario. A boutique automotive financial services company, "Finance Magic Happens Here", ECHO has quickly entered into a period of rapid growth and expansion. For more information on ECHO Auto Finance, please visit our website at www.ECHOautofinance.com
Contact
Mr. Sandy Hum
Director of Marketing
[email protected]