VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/03/13 -- LX Ventures Inc. (TSX VENTURE: LXV) ("LXV" or the "Company") and Sosido Networks Inc. ("Sosido") are pleased to announce that LXV has entered into a term sheet to acquire Sosido.
Sosido is an online knowledge exchange community for physicians, nurses, pharmacists and other healthcare professionals. It uses innovative technology to connect and filter knowledge through trusted colleagues, creating a unique communication platform that revolutionizes the way health care professionals share information and collaborate with each other.
Sosido successfully completed their beta rollout last year and have recently commercialized their platform. With an estimated four million healthcare professionals in North America alone who directly influence $1 trillion in healthcare spending annually, Sosido is addressing a large and disruptable market opportunity.
The HealthTech sector as a whole has recently seen a dramatic increase in investment to drive innovation around specific themes. Last month, Nike announced the 10 companies participating in the first class of its TechStars-powered accelerator for health and fitness-related startups. Earlier this year, GE announced a partnership with Startup Health to invest in consumer health startups.
LX Ventures plans to quickly expand and improve upon the Sosido platform to drive user acquisition and revenue growth. "The acquisition of Sosido brings significant synergies to the LXV group. The management team of Sosido, with its strong domain experience, fits perfectly into the expansion strategy for LXV's HealthTech division. Sosido has recently commercialized and is seeing strong growth of its platform and users, so the timing of the acquisition is ideal for LXV," said Mike Edwards, CEO of LX Ventures.
Tanis Steward, Founder and CEO of Sosido, said, "It's exciting to become part of LXV. Their team has the skills and experience to continue to accelerate the expansion of Sosido by leveraging our sector expertise, while further refining our technology and improving our users' experience."
LXV has an exclusive period within which to finalize a definitive agreement. This acquisition is expected to close within the first two weeks of May, 2013. Consideration for the acquisition is contemplated to be 1,166,000 LXV common shares at a deemed price of $0.25 per LXV share.
About LX Ventures Inc.
LX Ventures is a publicly traded incubator that launches, integrates, and acquires early stage high growth technology companies. We are a group of entrepreneurs dedicated to developing the next generation of entrepreneurs by providing funding, resources, mentorship, and access to our global network. We are in the business of building businesses. Our approach is twofold: we either partner with existing companies to assist with distribution and scaling or we internally innovate from idea generation through to launch and exit. For further information about LX Ventures, its technology, collaborations and partnerships, please visit: www.lxventures.com.
ON BEHALF OF THE BOARD
LX VENTURES INC.
Mike Edwards, President & CEO
CAUTIONARY NOTE: FORWARD-LOOKING STATEMENTS. Other than statements of historical fact, all statements included in this news release, including, without limitation, statements regarding future plans and objectives of LX are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those expected by LX are those risks described herein and from time to time, in the filings made by LX with Canadian securities regulators. Those filings can be found on the Internet at http://www.sedar.com.
Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
LX Ventures Inc.
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