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HARRIS TECHNOLOGY GROUP LIMITED — Capital/Financing Update 2011
Feb 7, 2011
65074_rns_2011-02-07_b1e105c6-f107-4957-9226-7e6f1b1421fd.pdf
Capital/Financing Update
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ADEFFECTIVE LIMITED
(ASX: ABN)
ASX and Media Release
8 February 2011
AdEffective Signs MOU with Excite Digital Media for Online Marketing Services
AdEffective Limited (AdEffective or the Company) announces today it has signed a Memorandum of Understanding (MOU) with leading digital marketing and advertising company, Excite Digital Media (Excite).
The Parties have agreed to enter into a Marketing Services Agreement under which Excite will provide marketing services to AdEffective for multiple AdEffective website properties for an initial twelve month period commencing in February 2011 (with options available to the parties to renew the initial term for further twelve month periods).
The key terms of this agreement are as follows:
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The Marketing Services Agreement will be for an initial period from February 2011 to 31 January 2012. The parties will have the option to renew the agreement for a number of further 12 month periods.
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AdEffective expects to spend up to a maximum of $120K per 3 month period on Excite marketing services to deliver $300K per 3 month period in net revenue, starting immediately.
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As results will be monitored on a daily basis, costs are able to be directly linked to revenue, and only incurred accordingly.
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Excite to receive 150m shares in the Company at a deemed price of $0.002 per share in total for delivering $1.2m net revenue to AdEffective over the initial proposed twelve month term of the agreement. The parties have agreed to negotiate in good faith the further consideration to apply to any extensions of the initial term.
This agreement will focus on websites owned and operated by AdEffective in the Asia Pacific region.
“Having had Excite help us successfully launch Footar late last year, we are extremely excited to be working with them again,” said Dean Jones, Managing Director of AdEffective Limited. “Through this expanded partnership, the Company aims to get maximum value from its advertising and website assets.”
It is expected that by 31 January 2012, a total of AUD $1,200,000 net revenue (revenue after advertising costs and after feed provider revenue share) will be delivered to AdEffective as a result of the services to be provided to AdEffective by Excite under the Marketing Services Agreement.
LEVEL 9 1 QUEENS ROAD MELBOURNE VIC 3004 T+ 613 9863 9742 Website: www.adeffective.com.au Email: [email protected]
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Excite will receive 37.5m ordinary fully paid shares in AdEffective at a deemed price of $0.002 per share for every AUD $300,000 in net revenue that is delivered to AdEffective to a maximum of 150m ordinary shares during the initial term of the agreement.
The Parties expect to complete the formal agreement within one week of today’s announcement. The Company will provide an update to the market on the status of the formal agreement on or around Tuesday 15 February 2011.
Dean Jones Managing Director T: + 61 3 9863 9742 M: + 61 414 546 421
About AdEffective Limited
AdEffective is an online advertising business focusing on the distribution of search advertising to publishers and publisher networks and more recently, on the design and development of innovative new platforms and technologies in the online advertising space to help improve advertiser ROI and generate more revenue for its publisher partners.
About Excite Digital Media
Excite specialises in online web-traffic, online search syndication and monetisation, search engine marketing and commercialising traffic for owners of sites and networks. Excite partners with the leading providers of search-based advertising on a global basis.