Public Media Works Inc. announced it has signed a Letter of Intent to acquire Cochrane, Alberta, Canada-based Mediamatic Ventures Inc. (dba VideomaticCanada). The companies anticipate the definitive agreement for an all-stock transaction will be executed in the next six to eight weeks pending the completion of PMW's due diligence that is currently underway.
According to company CEO Jeremy Ostrowski, VideomaticCanada has the second largest Canadian network of kiosks that rent and sell DVD movies and video games.
"With more than 67 DVD movie and game kiosk stores currently installed or being staged, and 25 more on order, we expect to have 92 kiosks up and running throughout Canada by August of this year," said Ostrowski.
At its current growth pace, VideomaticCanada's goal is to become the largest Canadian DVD kiosk network by the end of 2010, according to Ostrowski.
According to information from VideomaticCanada, the company began installing fully automated DVD vending machine kiosks in 2006, targeting convenience locations that allow customers access 24/7. With a priority to stay ahead of the curve, the company reports that it is transforming from the traditional disk dispensing kiosk to also allow customers to acquire downloadable content to almost any music or PDA device. Customers can also view titles online and reserve or buy entertainment content at a location of their choice.
The completion of the acquisition is subject to the negotiation and execution of a definitive acquisition agreement and the completion of the audit of VideomaticCanada. Public Media Works cannot provide any assurances that such an acquisition will be completed, or if completed, the timing of such completion.
