iSign gets LOI renewal from Canadian c-store giant for Digital OOH network

The company trying to acquire, keep going and then expand a Digital OOH network that’s been running in Canada’s largest C-store chain says it has hit one of its key milestones – a Letter Of Intent to re-up for five years with Mac’s/ Alimentation Couche-Tard Inc.

iSIGN Media Solutions Inc. is pleased to announce that it has completed the key condition to purchase Pinpoint Media Group Inc., by the signing of a Letter of Intent (“LOI”) with Mac’s Convenience Stores Inc.. (Mac’s) and Pinpoint for a new 5 year Virtual Private Advertising Network Agreement.

iSIGN will be issuing 7.5 million iSIGN treasury shares in return for all of the issued and outstanding shares of Pinpoint upon receipt of the signed Purchase and Sale Agreement and TSX approval.

“We have signed an LOI with Mac’s/ Alimentation Couche-Tard Inc. (“Couche-Tard”) to replace the existing VPAN agreement with Pinpoint that sets out the economics of the new agreement,” said Alex Romanov, iSIGN’s Chief Executive Officer. “The new VPAN arrangement will be for a 5 year term with an option for an additional 5 years and sets out the revenue based royalty payments to Mac’s/Couche-Tard. iSign has also agreed, subject to TSX – Venture Exchange approval, to issue warrants to Mac’s/Couche-Tard for 3 million iSIGN shares at an exercise price of $0.50 for 5 years, and to give Mac’s/Couche-Tard the option of converting either 100% or 50% of its cash royalty payments to 5% or 2 1/2% of iSIGN’s outstanding shares subject to TSX – Venture Exchange approval. As per the LOI, a full and complete VPAN and Maintenance and Service Agreement are to be signed within 60 days.”

The warrants thing is a pretty interesting spin on that. It’s been done before (going all the way back to the two original elevator screen networks, and probably others) but is still a departure from the more typical arrangement of a straight revenue share (which still exists here).

I wrote about this network last month and the pending deal. Getting Couche-Tard to re-up is a big moment, but there is a very long way to go before the running assertion about this being “the world’s largest fully interactive digital signage network” will be greeted with much more than an, “Uh-huh.”

It would be great, actually, to see the spread of mobile interactive into retail and watch the reaction from consumers and brands.