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8-K - CURRENT REPORT - ISSUER DIRECT CORP | isdr_8k.htm |
Exhibit 99.1
Issuer Direct Acquires FSCwire and Expands its ACCESSWIRE Business
in Canada
Acquisition will immediately allow ACCESSWIRE to increase press
release distribution capabilities in Canada and expand the
Company’s customer base by 300
MORRISVILLE, NC / ACCESSWIRE / July 9, 2018 / Issuer Direct
Corporation (NYSE American: ISDR) (the "Company" or “Issuer
Direct”), an industry-leading communications and compliance
company, today announced its acquisition of FSCwire, a privately
held, Calgary based newswire distribution company
(“FSCwire”).
Issuer
Direct’s strategic acquisition of FSCwire will allow the
Company’s ACCESSWIRE business to immediately increase its
press release distribution capabilities in Canada, thus reflecting
the Company’s commitment to growth in Canada. The entire
FSCwire team based in Calgary, Alberta, will stay with the Company
and join the ACCESSWIRE team. In addition to increasing
ACCESSWIRE’s capabilities, global foot print, distribution
and addressable market, the acquisition bolsters ACCESSWIRE’s
editorial strength in multiple locations to handle growing customer
needs.
Moreover,
the acquisition will result in 300 new customers. The Company
anticipates the opportunity to cross-sell its other Platform id.
offerings to these new customers will come next year, as its focus
will first be on integration of systems, teams, processes and
accounting. There will be no disruption to the FSCwire business
during this integration.
FSCwire
specializes in press release distribution to both public and
private companies primarily in Canada. Its customer base includes
public companies of all sizes on all stock exchanges;investor
relations firms, law firms, accounting firms and corporate
secretarial firms in addition to private companies, government
agencies and not-for-profit organizations.
Brian
Balbirnie, CEO of Issuer Direct, commented, “Our industry has
seen significant consolidation since we entered the newswire
business with our ACCESSWIRE acquisition in 2014, and this
acquisition was a natural step for us. We have added our own key
distribution points this year and FSCwire gives us even more points
of delivery for our growing customer base, which now moves us
closer to our stated goal of 2,500 customers by years
end.”
Mr.
Balbirnie added, “This acquisition, while accretive to our
earnings, is far more about distribution and market expansion.
ACCESSWIRE will now be able to expand its distribution with key
exchange partners in Canada and other key access points to all
current and prospective customers.”
“I
am very excited with
the future of the combined companies, as I believe this
acquisition will provide many great opportunities to all of the
staff in providing them with an amazing chance to succeed and grow
inside of a much larger company. This will also be a very positive
step towards offering our clients better options for U.S. and
Global distribution, and also offering many new products and
services that are not currently on our service list,”
commented Fred Gautreau, President, FSCwire, who will be staying
with the company as Director of Corporate Development.
The
purchase price of $1,200,000 consisted of 80% cash at close, 15%
cash held in escrow for eighteen months and 5% in shares of Issuer
Direct common stock.
About FSCwire
FSCwire
("FSCwire") is a North American newswire dissemination, SEDAR /
SEDI, and EDGAR / XBRL service provider. The services FSCwire
provides to publicly traded companies help ensure necessary
compliance is carried out in an efficient and timely manner.
FSCwire is a full service Newswire Disseminator and is fully
approved by all exchanges in Canada and the US. In addition to
providing services to public companies, FSCwire is also able to
complete newswire dissemination for private and not-for-profit
companies. The staff members of FSCwire pride themselves on being
Fast, Friendly, and Courteous. FSCwire has been in full operation
since May 1998.
About Issuer Direct Corporation
Issuer
Direct® is an industry-leading communications and compliance
company focusing on the needs of corporate issuers. Issuer Direct's
principal platform, Platform id., empowers users by thoughtfully
integrating the most relevant tools, technologies, and services,
thus eliminating the complexity associated with producing and
distributing financial and business communications. Headquartered
in RTP, NC, Issuer Direct serves more than 2,000 public and private
companies in more than 18 countries. For more information, please
visit www.issuerdirect.com.
Forward-Looking Statements
This
press release contains ''forward-looking statements'' 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
(the ''Exchange Act'') (which Sections were adopted as part of the
Private Securities Litigation Reform Act of 1995). Statements
preceded by, followed by or that otherwise include the words
''believe,'' ''anticipate,'' ''estimate,'' ''expect,'' ''intend,''
''plan,'' ''project,'' ''prospects,'' ''outlook,'' and similar
words or expressions, or future or conditional verbs such as
''will,'' ''should,'' ''would,'' ''may,'' and ''could'' are
generally forward-looking in nature and not historical facts. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance or achievements to be materially
different from any anticipated results, performance or
achievements. The Company disclaims any intention to and undertakes
no obligation to revise any forward-looking statements, whether as
a result of new information, a future event, or otherwise. For
additional risks and uncertainties that could impact the Company's
forward-looking statements, please see the Company's Annual Report
on Form 10-K for the year ended December 31, 2017, including but
not limited to the discussion under ''Risk Factors'' therein, which
the Company has filed with the SEC and which may be viewed at
http://www.sec.gov/.
For Further Information:
Issuer
Direct Corporation
Brian
R. Balbirnie
919-481-4000
brian.balbirnie@issuerdirect.com
Brett
Maas
Hayden
IR
(646)
536-7331
brett@haydenir.com
James
Carbonara
Hayden
IR
(646)-755-7412
james@haydenir.com