SYDNEY: Artificial Intelligence (AI) and e-Commerce marketing company OpenDNA Limited has executed the definitive Share Purchase Agreement for the acquisition of China market entry and digital marketing company, Quality Brands International Direct (QBID), expanding the Company’s China-focussed digital marketing capability, e-commerce platforms and revenue.

Completion of all conditions precedent to the acquisition is expected to occur within the next 2 days, following which, the issue of $491,667 in fully paid ordinary shares to QBID shareholders at $0.038 and payment of $50k in cash will occur.

The remaining conditions precedent are only administrative in nature including change in office holders for QBID.

 $125,000 of the initially announced upfront cash payment is to be applied as working capital to the QBID business with the company to issue 12,938,605 fully paid ordinary shares to satisfy the acquisition with the shares to be issued under Listing Rule 7.1 and subject to voluntary 12-month escrow provisions.

The acquisition extends the services of OpenDNA’s RooLife business by adding additional China-based digital marketing, translation, logistics, warehousing, trade regulation and e-Commerce platform marketing experience.

QBID, has been successfully driving e-Commerce sales in China for 4 years across a range of well-established e-Commerce platforms and e-Retailers in China including traditional B2B distribution for registered imported products in China.

Partial consideration payable by the Company for the QBID acquisition is milestone-based and aligned with revenue achievement with the Company able to fund the $50,000 cash acquisition component out of its existing cash reserves.

Managing Director Bryan Carr stated, “We have been working closely with the QBID team while concluding this transaction and we are delighted to have John Kilborn, George Panagios Jonathan Cox and Wesley Gao and their teams joining the OpenDNA group.“

“We are excited by the opportunities and projects already underway and those expected to be delivered from December 2019 with QBID.”We confirm our earlier guidance that, with the addition of QBID, we are expecting revenue in excess of $1m in the current quarter and we enter 2020 with an expanded customer, product and revenue base that will contribute to and continue to drive the Company’s growth. Based on QBID’s updated forecasts, revenue contribution from QBID for the balance of FY20 is expected to be approximately $1.2 million.

The Chairman of OpenDNA Grant Pestell commented, “The addition of QBID to our group affirms our announced strategy to rapidly build out the reach and capability of our RooLife platform in China, expand the customer base for our Artificial Intelligence systems and most importantly deliver revenue growth as we drive towards our target of profitability.” QBID founder George Panagios stated “We are delighted to now be part of the OpenDNA group and to be working closely with the OpenDNA team. Together we have an enviable and unique combination of skill sets, networks and delivery capability both locally and in China and with the opportunities ahead of us we are excited by the prospect and to be OpenDNA shareholders.”