PNI shall receive royalty payments and shall maintain the right to use within its platform. Ron Maor, the original inventor of the technology, will head the R&D efforts to further develop and improve this award-winning technology.
The Company wishes to advise shareholders that during the two months of January and February, 2009 transactions and gross dollars processed through its platform, on behalf of its retailers, were up 168 percent and 229 percent, respectively, over the similar two month period of 2008.
PhotoChannel also announces that it has completed the purchase of 100 percent of the issued and outstanding share capital of WorksMedia Limited previously announced February 25th, 2009. Under the terms of the Share Purchase Agreement, PNI will pay the shareholders of WorksMedia Limited $2.1 million in 13 equal monthly installments and issue 750,000 common shares of the Company in three equal installments of 250,000 common shares after 12, 24 and 36 months in exchange for all of the issued and outstanding shares of Works Media Limited. If PNI chooses for whatever reason or does not make a cash payment, the vendors will have the right to the return of the WorksMedia business, and will retain all cash and shares issued to the vendors in connection with the purchase. As further consideration for the purchase, if specific pre-determined annual performance targets are met, the shareholders of WorksMedia will receive up to an additional 900,000 common shares over the next three years.