January 30, 2017 08:26 ET
iTeknik Holding Corporation Completes First Acquisition Using its New $15 million Credit Facility
WEST PALM BEACH, FL--(Marketwired - Jan 30, 2017) - iTeknik Holding Corporation (OTC PINK: ITKH) announced today that on January 3, 2017 it completed its first acquisition by acquiring the assets of Arrowhead Advertising from the TCA Global Master Credit Fund, LP.("TCA" .
iTeknik Holding Corporation accessed its recently secured credit facility to draw down $5 million dollars in cash of which $4.1 million was used to acquire assets owned by TCA known as Arrowhead Advertising. In addition, to the cash component, the Company agreed to pay the sellers an additional $1 million dollars in the form of 18 month convertible debt.
The Arrowhead Assets were acquired by the Company's newly formed, wholly owned subsidiary, Big Rhino Corporation, free and clear of any debts and encumbrances. With the acquisition of these assets, Big Rhino will be a full service advertising agency with the initial potential to annually place up to $40 million in traditional media and earn commissions from media placement, digital media and creative work in excess of $4.5 million annually. Big Rhino is expected to earn over $1 million dollars annually, excluding depreciation, amortization, interest and taxes (EBITDA).
Fred Wicks, the Company's Chairman and CEO, said, "This acquisition will provide the basis for future growth both through acquisitions and organic growth. We've hired and assembled a talented and experienced team to manage our new operating company."
Kyle Eng, who was hired as the president of Big Rhino, stated, "By being part of iTeknik I can focus my team on organic growth, and fulfillment to enhance shareholder value and allow Fred and his team to focus on the Company's finances and acquisitions. I'm very excited by what we can achieve together. It's the perfect team that can only get stronger over time!"
About iTeknik Holding Corporation
iTeknik Holding Corporation's strategy (OTC PINK: ITKH) is to acquire fundamentally sound companies that are market accepted, scalable and demonstrate a quantifiable value proposition. Our focus is in companies that have strong market presence, brand awareness and talented and dedicated management teams with the potential to achieve exceptional performance over time in the Marketing, Advertising and Digital Media space. iTeknik lends its operational support, management approach and financial resources to these companies to achieve improvements in both revenue and earnings growth and positioning in the marketplace. iTeknik Holdings currently operates one wholly owned subsidiary; Big Rhino Corp.