M&A - MODE MOBILE, INC.
Form Type: 253G2
Filing Date: 2025-02-24
Corporate Action: Acquisition
Type: Update
Accession Number: 000149315225007993
Filing Summary: Mode Mobile, Inc. filed Supplement No. 4 to its Offering Circular dated July 25, 2024. The supplement updates the Company’s Risk Factors, Use of Proceeds, and Business Strategy, specifically regarding potential impacts of strategic acquisitions focused on asset acquisitions. The Company has not identified specific acquisition targets or entered any definitive agreements but outlines risks associated with its acquisition strategy, including challenges in successfully integrating acquired assets and the possibility of incurring debt to finance these acquisitions. The acquisitions may lead to significant costs, including professional fees and integration costs, and could result in dilutive issuances of equity securities. The use of proceeds from the Offering is summarized for various raise scenarios, with an emphasis on payroll, product development, marketing/advertising, general & administrative expenses, and asset acquisitions. The strategy aims to acquire complementary assets and technology to enhance growth over the next 6-12 months, emphasizing product compatibility and metrics like revenue growth and user retention.
Document Link: View Document
Additional details:
Risk Factors: ["failure to realize potential benefits from future acquisitions","unable to identify or complete suitable acquisitions","unexpected or additional costs associated with acquisitions","indebtedness incurred for acquisitions","insufficient due diligence on acquisition targets","dilutive issuances of equity securities"]
Use Of Proceeds: [{"max_offering":5000000,"total_gross_cash_proceeds":[20000000,37500000],"to_selling_securityholders":[0,4000000,7500000],"commissions_variable_expenses":[645000,1410000,2302500],"transaction_fee_charged_to_investors":[-100000,-400000,-750000],"fixed_costs":[60500,60500,60500],"total_net_proceeds":[4394500,14929500,28387000],"payroll":[1098625,3732375,7096750],"product_development":[1098625,2985900,5677400],"marketing_advertising":[1098625,2985900,7096750],"general_administrative":[1098625,2239425,4258050],"asset_acquisitions":[0,2985900,4258050]}]
Acquisition Targets: ["business\/apps in rewards & loyalty space","gaming portfolios","launcher and lock screen products","earnings-related verticals"]
Acquisition Criteria: ["product compatibility","year over year revenue growth","current profitability","strong user growth and retention","attractive user acquisition metrics"]
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