VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 25, 2014) - VRX Worldwide Inc. (TSX VENTURE:VRW) (the "Company") is pleased to announce that it has entered into an agreement to sell VRX Studios Inc., its wholly owned subsidiary, to 1008851 BC Ltd., an affiliated company of LHI Local Hospitality Inc., for all cash consideration of $3 million CDN (the "Transaction"). The sale of the Company's photography services business is part of a strategic restructuring of the Company's business to focus solely on its fast-growing, high margin, cloud-based digital asset management software business operating under the brand, MediaValet(R). Upon closing, the Company will be renamed MediaValet Inc. and its trading symbol will be changed accordingly. The Transaction is subject to approval by shareholders and the TSX Venture Exchange.
MediaValet was initially created by VRX Studios to address its own need for a digital asset management system ("DAMS"), but that need was quickly eclipsed by the burgeoning demand for cloud-based digital asset management software by other companies - large and small, in a wide variety of industries and locations around the world. MediaValet was built by the Company from the ground up on Microsoft's enterprise Cloud-platform, Windows Azure, to leverage the unique characteristics built into its core: global accessibility, triple redundancy, geo-replication, multi-tenancy, enterprise grade security and near infinite scalability. To this day, MediaValet remains the only 100% cloud-based DAMS - and the only DAMS available on Windows Azure.
Although the on-premise digital asset management industry is well established, MediaValet is leading an entirely new generation of digital asset management systems forged in the Cloud. Leveraging Windows Azure, MediaValet makes it effortless for companies of all sizes, industries and locations to aggregate, organize, secure and share their digital assets - no matter how many assets they have or where their users are located.
"Born out of our own struggles to find a suitable digital asset management solution for VRX Studios, MediaValet has become the growth engine of our company," says David MacLaren, Founder and CEO, of MediaValet Inc. "We realized early on that MediaValet had the potential to be more than simply an internal tool for our photography business. Three years after creating the first line of code in the Cloud, we're very excited to take this next step in our evolution - as a company, as a team and as fellow investors."
Delivered under a software-as-a-service (SaaS) model, MediaValet's annual recurring revenue has doubled in the last twelve months and continues to grow at a rapid pace. Over the last few months, MediaValet has added customers in industries as diverse as consumer electronics, cosmetics, greeting cards, and online education. Over the next six months, MediaValet will launch the third and fourth major releases of its cloud-based, enterprise class, digital asset management system (DAMS).
Closing of the Transaction is subject to customary conditions, including approval by the Company's shareholders and the TSX Venture Exchange. The Company expects to obtain shareholder approval by written consent. PI Financial acted as financial advisor to the Company and will receive a fee for the successful completion of the Transaction. The Company intends to use the proceeds of the sale to further advance the MediaValet business, reduce debt and financing costs, and for general working capital.
About MediaValet, Inc.
MediaValet stands at the forefront of the emerging cloud-based digital asset management (DAM) industry. With the only 100% cloud-based digital asset management system (DAMS), and the only DAMS built on Windows Azure, MediaValet is the only cloud DAM provider equipped to meet the digital asset management needs of any company, no matter its size, industry or location. Created by marketers for marketers, MediaValet puts product design and support first, ensuring an exceptional customer and user experience at all times.
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Source: VRX Worldwide Inc.