Vancouver, BC, November 13, 2019, Upco International Inc. (CSE: UPCO, OTCQB: UCCPF, Frankfurt: U06) (“Upco”, the “Company”) is pleased to announce that on November 5, 2019, it has successfully signed a non-binding Letter of Intent (“LOI”) to acquire its second target in the telecom industry. The acquisition Target (the “Target”), name undisclosed at this time, is a Germany telecom company with extensive connections and business in Europe. Upco will pay a total consideration of EURO 4,150,000 (CAN$6,017,500) that includes cash consideration and earn out as follows: EURO 3,250,000 (CAN$4,712,500) ) in cash at closing and earn out of EURO 300,000 (CAN$435,000) in Upco stock at the end of the second quarter of 2020 at a price of CAN$0.29 per share and Upco stock in the amount of EURO 600,000 (CAN$870,000) Euros at the end of fiscal year of 2020 at a price of CAN$0.29 per share. With regards to Upco shares, the shareholders of the Target will not sell or transfer shares until January 1, 2021. Upco plans to raise funds in order to satisfy the cash consideration. The CAN$0,29 per share price was negotiated between the Target and Upco.
Upco will conduct further financial and operational due diligence as the next step of the process, which will be led by the Company’s CFO, Ruy Ivaldi, in conjunction with Upco’s US-based investment banking advisor, Bardi Co. LLC. Upon a successful due diligence process and definitive agreement, Upco will focus on integrating its UpcoPay eWallet into the growing Business to Consumer (B2C) mobile payments market.
About Upco International Inc.
Upco International Inc. is a cloud-based mobile service company which provides high-quality voice termination to a market driven by the growing activity in online communications and commerce. Upco is a licensed Global Telecom Carrier within the international VoIP (voice over IP) wholesale business. Upco has designed a software application for Apple iOS and Android, similar to SKYPE and WhatsApp. With the forthcoming addition of the Upco e-Wallet using Blockchain Payment Services, users will be able to: send invoices, approve payments, transfer international funds, convert international currencies, and track transfers and payments. The application will also allow vendors to securely share account information with their clients.
ON BEHALF OF THE BOARD OF DIRECTORS
Andrea Pagani, CEO and Director
212 461 3676
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Except for the statements of historical fact, the information contained herein is of a forward-looking nature. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by statements containing forward-looking information. Such factors include continued availability of capital and financing and general economic, market or business conditions.
Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that statements containing forward-looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on statements containing forward-looking information. Readers should review the risk factors set out in the Company’s Filing Statement as filed on SEDAR.