Local Marketing Solutions Group Inc. signed a letter of intent to acquire Software-as-a-Service business from Datable Technology Corporation (TSXV:DAC) for $3.5 million on June 15, 2023. Under the LOI, LMSG will acquire Datable's SaaS business in return for 15% equity ownership in LMSG. The LOI sets the value of LMSG pre-Transaction at $19.7 million, equal to approximately one times LMSG's 2023 revenues, such that Datable's 15% ownership of LMSG post-Transaction will have a deemed value of approximately $3.5 million.

The LOI is non-binding and subject certain conditions, including due diligence. The Definitive Agreement is expected to include terms customary to an acquisition including, but not limited to: A concurrent financing of CAD 2 million to fund the growth of the combined company, with terms under discussion to be disclosed at a later date; Employment agreements to retain key members of the Datable management team; and, Shareholder and stakeholders' approval as required by regulatory authorities. After the execution of the Definitive Agreement, it is expected the Acquisition will be subject to TSXV approval.

Under the LOI, a definitive agreement is to be signed no later than July 31, 2023, and the Acquisition is to be closed no later than November 30, 2023, unless extended by mutual agreement. As of February 20, 2024, Datable and LMSG are in discussions to restructure the proposed Transaction due to material changes in the businesses of Datable and LMSG coupled with changing market conditions. Further they have agreed to extend the deadlines for reaching a definitive agreement and for closing dates to be determined by the structure of a revised transaction.