Logiq Initiates Major Restructuring Designed to Expand DataLogiq Business Unit and Unlock Value of Emerging Markets Initiatives
NEW YORK, Sept. 27, 2021 (GLOBE NEWSWIRE) -- Logiq, Inc. (NEO: LGIQ) (OTCQX: LGIQ), a global provider of award-winning e-commerce and fintech solutions, forecasts strong growth ahead driven by both strategic M&A that will accelerate growth in its DataLogiq business, and the strategic spinoff of its emerging markets business units.
Over the past year, Logiq has acquired and integrated into DataLogiq three leading e-Commerce platforms. Through these key acquisitions, DataLogiq has become an e-Commerce industry leader in data-driven consumer intelligence and automated marketing technology.
These business units, led by Logiq Consumer Marketplace (LCM), are gaining traction on the customer front while also exploring steady opportunities on the strategic partnership and potential mergers and acquisitions side.
“Logiq, by way of the three recent acquisitions of Push Interactive, Fixel AI, and Rebel AI, has built an enviable platform for small to medium-sized businesses and is positioned to grow this business significantly over the next few years,” commented Brent Suen, president of Logiq. “Our feedback from customers, partners, research analysts and investors is highly encouraging yet a common theme is that they desire to see us operating at a larger scale – this combined with a promising pipeline of possible candidates for merger or acquisition opens up substantial opportunity.”
Tom Furukawa, CEO of Logiq, commented: “There are a large number of peers operating in our industry segment that are privately-held, generating solid revenue, operating profit and even net income, that could be acquired for compelling valuations while at the same time, offering accretive revenue growth, margins and earnings potential. We’re looking at a number of them currently and the pipeline is growing. Though we do not have any definitive agreements in place to make any such acquisitions at this current time, we firmly believe that growth through accretive acquisition is a strong path forward and endeavor to execute on it.”
As part of its M&A strategy, Logiq has begun to assess strategic alternatives, including a possible spinoff of its AppLogiq business within the next few months so it can better focus on DataLogiq’s abundant growth opportunities while AppLogiq focuses on the burgeoning emerging markets fintech opportunity. AppLogiq is the company’s mobile commerce platform-as-a-service (PaaS) and proprietary mobile fintech solutions that have been deployed in emerging international markets, primarily in Southeast Asia.
AppLogiq includes the PayLogiq™ e-Wallet, GoLogiq™ hyper-local food delivery, and other mobile eCommerce solutions, as well as a recently announced mobile fintech platform for microlending.
While AppLogiq’s business was severely impacted by the global pandemic, the last few quarters have seen a significant turnaround as it focuses on higher margin direct sales and delivering new mobile fintech services under major exclusive partnerships. In the company’s second quarter of 2021, AppLogiq gross profit increased 38% to $901,000 or 31.7% of revenue from $653,000 or 11.6% of revenue in the same year-ago quarter—a nearly 3x lift in gross margin.
Matthew Brent, chief strategy officer at AppLogiq, commented: “As the result of this strengthening momentum in key areas of its business, combined with the presence of PayLogiq and GoLogiq in Indonesia, we believe AppLogiq is now ready to stand on its own — where it would be in a better position to attract the right growth capital, along with investors who appreciate the vast opportunities it enjoys in today’s emerging markets.”
“Recent transactions between emerging markets companies and U.S.-listed SPACs, IPOs in the U.S., and merger and acquisition activity with notable companies, such as Grab Holdings and Altimeter Growth Company, FinAccel and Victory Park Capital, Bukalapak, SEA Holdings, Jumia and others, demonstrate valuations that firmly reflect the significant opportunity abroad,” continued Brent.
Furukawa added: “Given that we believe the equity markets have significantly undervalued AppLogiq’s proprietary IP and its turnaround, as well as our investment and shareholdings in Weyland Indonesia Perkasa (WIP), we believe it is in the best interests of our shareholders to realize the value of what AppLogiq has achieved by evaluating strategic alternatives, including through a possible strategic spinoff. We expect to make additional announcements in the near future as definitive plans are made under the guidance of expert advisors in such transactions.”
Logiq Inc. is a U.S.-based leading global provider of e-commerce and fintech business enablement solutions. Its DataLogiq business provides a data-driven, end-to-end e-commerce marketing solution. Its AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend. The company’s Fixel technology offers simplified online marketing with critical privacy features.
In its AppLogiq business, Logiq’s platform-as-a-service, branded as CreateApp™, enables small- and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. CreateApp™ empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way. CreateApp™ is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia. The company’s PayLogiq, branded as AtozPay™ in Indonesia, offers mobile payments, and GoLogiq, branded as AtozGo™ in Indonesia, offers hyper-local food delivery services. Connect with Logiq: Website | LinkedIn | Twitter | Facebook.
Important Cautions Regarding Forward-Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This press release also contains forward‐looking statements and forward‐looking information within the meaning of Canadian securities legislation that relate to Logiq’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward‐looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release. Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In particular and without limitation, this press release contains forward‐looking statements regarding our products and services, the use and/or ongoing demand for our products and services, expectations regarding our revenue and the revenue generation potential of our products and services, our partnerships and strategic alliances, the impact of global pandemics (including COVID-19) on the demand for our products and services, industry trends, overall market growth rates, our growth strategies, the continued growth of the addressable markets for our products and solutions, our business plans and strategies, our competitive position in our industry, our ability to successfully locate and consummate the contemplated strategic transactions, if any, and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation that are available on www.sedar.com, including under the heading "Risk Factors" in the Company's Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Logiq to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward‐looking statement. Any forward‐looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
Brent Suen, President
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