Investorideas.com

Call 800 665 0411 to learn about our services

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS



Share on StockTwits

Logiq Board OKs Splitting Into 2 Companies

Source: Streetwise Reports

 

January 7, 2022 (Investorideas.com Newswire) E-commerce customer acquisition solutions company Logiq Inc. plans to separate into two publicly traded companies this month, President and Executive Chairman Brent Suen says.


Logiq Inc. (LGIQ:NEO; LGIQ:OTCQX), the e-commerce customer acquisition solutions company comprising AppLogiq, a mobile app provider, and DataLogiq, an advertising technology platform, recently announced its planned separation into two publicly traded companies on Dec. 30, 2021.

Potential acquisitions are on the table to create rollups in AdTech and Mobile E-Commerce, respectively, according to Brent Suen, president and executive chairman.

AppLogiq, a mobile e-commerce solutions provider, enables small businesses to create a mobile app for their business. This is growing rapidly in developing countries such as Indonesia and Laos where mobile devices are ubiquitous versus desktop and laptop devices in the U.S.

DataLogiq provides customer acquisition solutions for small businesses, including advertising technology, marketing technology, and lead generation in North America, primarily the United States.

On June 30, 2022, the company will distribute to those shareholders who were of record as of Dec. 30, 2021, "pretty close to 1:1 - where shareholders will see that the implied value of the spinoff is equal to our entire market cap now - just on the AppLogiq piece. On the DataLogiq side, based on the growth of the business and the comparable market valuations, it should be equal to $180-$250 million in combined value to shareholders or $6-10 per share," Suen said.

By adding to its scale through rollups, the management expects each of the two companies to qualify for NASDAQ listing by the end of 2022, he said. In the new formulation, AppLogiq will be known as GoLogiq, while Logiq Inc. will house the DataLogiq business. "We have acquired a shell that is fully reporting to the SEC ... with no assets or liabilities, to house the spinoff." The company will put the emerging assets/fintech assets into the shell and issue shares to the public, he explained. "Our goal is to uplist or there is another path where the company .... would go directly to IPO on the NASDAQ, possibly within the next 12 months." Suen said.

The pace of acquisition talks is promising with the company seeking to create rollups in both the advertising tech space for Logiq and mobile e-commerce solutions rollup for AppLogiq.

"We are currently in conversations with 31 potential acquisition targets for DataLogiq and seven on the AppLogiq side," he said.

The company had filed an S3 with the Securities and Exchange Commission (SEC) in late September to signal its intent to raise up to $40 million, which it said was expected to be used for both companies to acquire and roll up other providers in what is an emerging and fast-growing landscape.

"We would hope to do acquisitions with stock as well as cash ... on a case-by-case basis. We are looking to make acquisitions that are accretive ... well over half (of the 31) are profitable right now. We are looking to acquire revenues and earnings. Others are cash-flow positive," Suen said.

Datalogiq's business is concentrated in the U.S., where over 53% of consumer online buying is on the top five platforms: Target, Amazon, eBay, Alibaba, and Walmart. The company intends its products and services to give small and medium businesses similar tools to sell more: lead generation, online marketing and advertising technology, "AdTech, MarkTech and LeadGen."

"We try to level the playing field so that small businesses that have to compete against Amazon and Walmart and Target etc., have the same tools available to them to effectively compete on the advertising and marketing side," Suen said. "It is very much of a little person versus big, David vs. Goliath theme."

The Company taps advertising and marketing agencies who service small business in an efficient sales process to help small businesses level the playing field to compete against the larger players.

"The path that we're following is going to ad agencies that are that are providing small budget services for small businesses. By partnering with them and giving them access to the platform, they in turn, give that access to their small businesses," Suen said. "So instead of having thousands of salespeople, we have a dozen who go to ad agencies that cater to small businesses."

While this sector is not being sought by SPACs or major players in the hedge fund world, many of the smaller investment banks are looking for players in the space.

AppLogiq's business taps into the digital landscape in emerging markets which is smartphone based. Micro and small businesses fulfill their business needs on their phones as opposed to desktop and laptop computers, not as widely used in emerging markets. AppLogiq enables creating an online presence, fulfilling their wants and needs. That includes offering products, accessing supplies and inventory.

Founded in Singapore under a different name, AppLogiq now has a significant headcount of senior-level people on the ground in the emerging markets, which they point to as a strength to digital service providers that want to gain traction there. The U.S.-based teams of their competitors tend to be younger and, during COVID, less likely to be on the ground in the region.

Indonesia is currently the top emerging market as a region. The Company has a 40-person team in Indonesia; three in Ho Chi Minh City, Vietnam; four in Singapore; and five in Myanmar. "We do have significant people there who are both senior-level management and operators."

Disclosure:

1) Gerri Leder compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.

2) As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Logiq Inc. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Logiq Inc., a company mentioned in this article.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits






Tech Stocks - Tech Stocks Directory, Tech Stocks News, Research and Resources

Get more Technology stock investor ideas - news, articles, podcasts and stock directories