Cellular Tower of Babel: Pair of TSX-V Companies Partner for Seamless Translation

In order to eliminate the problem of messages that are lost in translation, Synchronica PLC (TSX-V:SYN) signed a letter of intent to integrate its flagship messaging platform, Mobile Gateway, with Intertainment Media’s (TSX-V:INT) Ortsbo experiential language technology. The pairing enables Mobile Gateway the ability to seamlessly provide real-time translation between more than 50 languages potentially across Synchronica’s platoon of international clients that today totals over 100 mobile operators and device manufacturers.

Angus Dent, CEO of Synchronica, said of the deal "Ortsbo complements Synchronica Mobile Gateway, and together we're able to provide a unique possibility for our customers to position themselves as the hub for social interaction, regardless of geographical or language limitations."

The strategy going forward is to have both parties form a joint venture between Synchronica, Intertainment Media and its subsidiary Ortsbo Inc. in order to license their respective intellectual properties to a newly formed subsidiary. Doing so will allow each party to further develop each other’s products jointly through shared research and development efforts, with the intention to drive revenue and profitability for both companies with the unveiling of new projects.

The companies have intimated that a demonstration of the Ortsbo technology, fully integrated with Mobile Gateway will be ready to be unveiled in time for the Mobile World Congress 2012 held in Barcelona in late February.

As per the structure of the pairing’s transaction, Intertainment Media will invest up to $10-million in Synchronica (subject to SYN shareholder approval) at a minimum price of $0.16 per unit (current price at publication: $0.23), with the added perk of warrants at $0.40 per share. Completion of satisfactory due diligence is required for the legal execution of the agreements at this time.

Around the corner will be Synchronica’s seeking of shareholder approval for Intertainment Media’s first investment of $1-million, to be used for the integration measures for the Ortsbo/Mobile Gateway integration. The next investment from Intertainment Media is scheduled to come in March for between $1-million to $5-million.

From Intertainment’s point of view, the partnership opens up a new source of clientele. David Lucatch, CEO of Intertainment Media and Ortsbo said, "Synchronica Mobile Gateway has strong sector revenue and is already used by more than 100 of the world's most successful mobile operators and device manufacturers. Several of Synchronica's customers have multinational properties, and by providing on-the-fly translation with Ortsbo, they add even greater value to their service offerings and sector leadership.”

“Intertainment Media is all about investing, nurturing and developing leading edge technologies, digital and social media platforms. Synchronica ticks all of these boxes, and we're excited about the prospects of our cooperation and a strong future together."

In order to meet the expectation of integrating Ortsbo with Mobile Gateway in time for the Mobile World Congress, the partnership has work to do over the next coming weeks. Going forward, once the partnership has completed the integration of Ortsbo and Mobile Gateway, the final product should offer consumers a more wide-open world, with language being less of a barrier than before.

Geoff Woade
VantageWire

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