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Bitzio, Inc. Announces New Funding(January 18, 2012)
SAN DIEGO, CALIFORNIA -- (Marketwire) -- 01/18/12 -- Bitzio, Inc. (OTCBB:BTZO) ("Bitzio" or "the Company") is pleased to announce that it closed a series of private placements and debt financings as of the fourth quarter of 2011, for gross proceeds to the Company of $482,500.
In addition, key executives of the Company have entered into a series of agreements with Bitzio to waive compensation for 2011 or 2012 to an aggregate value of over $1 million in exchange for preferred shares and options in the Company. Further, the Company has agreed to a deferred compensation plan for key executives in 2012 on cumulative salaries of $567,000 to be repaid over a 12-month period beginning in Q3 of this year.
The proceeds received by the Company will be used to fund continued development of the Bitzio platform (a suite of tools, processes and methodologies that enables app developers to develop, deploy and optimize their apps), and to execute the next stage of Bitzio's aggressive acquisition strategy.
"We are delighted at having secured this funding and even more pleased that most of the support came from management of the Company," said Gordon McDougall, CEO of Bitzio. "Our management team is comprised of highly respected, seasoned business veterans who know how to build companies and some of the most brilliant young thought-leaders in the mobile applications industry. Simply put, this is a validation of the confidence this best-in-class team has in our plans for Bitzio and the growth potential of the mobile applications industry as a whole."
About Bitzio, Inc.
Bitzio's mission is to help mobile app developers get the full potential of their mobile apps by increasing consumer reach, conversion rates and bottom line profitability. Bitzio's strategic arsenal of methodologies and technologies allows mobile app developers to quickly develop, market and monetize their apps. Our goal is to be responsible for the download of 1 Billion apps by 2014. For more information on the company, visit us at www.bitzio.com. To learn more about Bitzio, watch the video.
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to earnings expectations for the 4th quarter and the full fiscal year; The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission. (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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