Iteknik Holding Corp (OTCMKTS:ITKH) shares were flat on Monday at $0.00270 as investors have yet to react to the company’s latest acquisition. Share prices have been trading in a 52-week range of $0.00 to $0.00. The company has a market cap of $642,201.00 at 202.61M shares outstanding.
Iteknik Holding Corp is a company that was formed to acquire fundamentally sound companies that are market accepted, scalable and demonstrate a quantifiable value proposition. The company’s 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 Holding Corp also 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.
In a press release this week, Iteknik Holding Corp announced that it completed its first acquisition by acquiring the assets of Arrowhead Advertising from the TCA Global Master Credit Fund. These assets were acquired through the formation of a new subsidiary called Big Rhino Corporation, which 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. This subsidiary is projected to make $1 million annually and has acquired the assets free and clear of any debts and encumbrances.
“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,” said Iteknik Holding Corp CEO Fred Wicks.
“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!” said newly-hired President of Big Rhino Kyle Eng.
The acquisition was funded through $4.1 million from the $15 million credit facility that Iteknik Holding Corporation previously secured. In addition, the company will use $1 million to pay the sellers in the form of 18 month convertible debt. This credit facility was secured in December last year and will provide multiple advances as requested and approved for individual or multiple acquisition over 20 months.
“With access to the amount of capital provided under this facility we believe that we will be able to secure a number of significant acquisitions to build shareholder value. In conjunction with securing this funding we have developed a new strategy to focus in the media and advertising space,” remarked Fred Wicks on this facility.