Vancouver, British Columbia--(Newsfile Corp. - June 8, 2020) - VPN Technologies Inc. (CSE: VPN) (OTCQB: SRBBF) (FSE: 6GQ1) ("VPN Tech" or the "Company") announces that it has signed a Letter of Intent (the "LOI") to acquire two operating VPN companies; TUNNELLO SAS and PELGO SYSTEMS SAS, both with official corporate offices in France.
The target companies have serviced over one million users and include both Android apps and a chrome extension for fast, secure 4096-bit military grade encryption. VPN Tech has 60 days under the terms of the LOI to reach a definitive agreement. The Company's President and CEO, Paul Dickson, is confident the Company will be on schedule saying, "We held a number of discussions with the owners leading up to executing the LOI and the Company has every opportunity to close this acquisition, subject to a positive due diligence outcome."
Under the terms of the LOI and subject to regulatory approval, VPN Tech will acquire 100% of the target companies, including all proprietary technologies, customer databases, brands, and intellectual property for €350,000 (Approximately CAD$530,000). Upon closing, the acquisitions will provide VPN Tech with an estimated cash flow of $20k-$30k CAD per month and a solid foundation in the fast-developing European market as the Company continues to build out its VPN operations in North America through acquisition and organic growth.
Launched in 2011 and 2016 respectively, Tunnello and VPNVision have quickly grown in popularity by providing an effective virtual private network business. With military-level encryption, cross-device functionality, and fast connection speeds due to an early investment into R&D, the two businesses have demonstrated clear product-market fit and attracted over one million users worldwide.
With over a decade of combined operational history, Tunnello and VPNVision have become reputable players in the VPN space. Earnings for the VPN industry are forecasted to experience robust growth over the next five years with annual sales of $26B in 2018 rising to more than $70B in 2025. VPN Technologies is currently seeking to consolidate the widely segmented VPN business sector.
About VPN Technologies Inc.
A virtual private network (VPN) provides online privacy and anonymity for users by creating a private network from a public internet connection. VPN Technologies Inc is a publicly traded company with a focus on rapid corporate growth within the VPN cyber security sector.
The Company owns the BladeVPN and GamerVPN platforms and now seeks acquisitions to scale up operations and meet increased worldwide demand with more people working remotely due to the current world health pandemic.
On Behalf of the Board,
President & CEO
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business and trading in the common stock of VPN Technologies Inc. The forward-looking information is based on certain key expectations and assumptions made by the company's management. Although the company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the company can give no assurance that they will prove to be correct. These forward-looking statements are made as of the date of this press release and the company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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