Public Company Adds Popular Suite of Travel Apps and Online Business Directory to its IP Portfolio
SAN CLEMENTE, Calif., August 12, 2013 - Monster Arts, Inc. (OTCQB: APPZ), formerly Monster Offers, a leading mobile marketing and app technology innovator focused on mobile advertising consulting, Daily Deal aggregation, and more, announced today that it has acquired from Iconosys, Inc. the Travel America Visitor Guide brand and related assets, including a suite of travel apps, e-commerce website and an online directory that connects consumers with member businesses for a purchase price of $250,000.00; under the parties' deal terms, this purchase price will be paid by Monster Arts partly in cash ($50,000.00), including a cash payment within five business days of closing in the amount of $5,000.00 and the purchaser's issuance of a $45,000.00, 1-year promissory note, and partly in the form of 1,052,632 shares of restricted, Rule 144 Monster Arts common stock (valued at approximately $200,000.00, based on the closing trading price of Monster Arts common stock on the OTC Bulletin Board Exchange as of the date of closing). With the recent finalization of the company's name change and new ticker symbol (APPZ), Monster Arts sees the investment and acquisition as an opportunity to diversify its business and to create additional, recurring revenue streams.
With approximately six out of ten mobile users now using travel apps like Trip Advisor and Yelp, the acquisition of Travel America Visitor Guide (TAVG) positions Monster Arts to take advantage of this emerging consumer trend, and within the still high-growth travel app segment of the mobile communications sector. Indeed, in the US, travel apps were seeing the highest year-over-year growth of any industry or product-related app category in May 2012, at an impressive 116%, well above the growth in overall mobile app use (84%), according to a May 2012 Nielsen study "Courting Today's Mobile Consumer." Travel apps are proving profitable even at the so-called "freemium level," as upgrade potential and coupon sharing programs open up additional revenue building opportunities.
Introduced and conceived by Iconosys in December of 2011, Travel America Visitor Guide and its more than 200 associate Smartphone apps and websites connects users on all major mobile platforms with member businesses all across the United States. Its newly redesigned website also serves as an online business directory that can be searched by category, keyword, location, and more. The directory features participant profiles that contain not only descriptive business information, but also pictures, videos, links to members' social media pages and websites, as well as turn-by-turn directions for the consumer/user based on GPS. Businesses can manage their own profiles and keep their information up to date with a unique backend component that also offers extensive analytics and customer analysis regarding app usage.
During its first year alone, Travel America Visitor Guide brought in over $120,000 in recurring revenue from businesses paying for premium listings and purchases of various advertising campaigns, and now has approximately 3000 paying businesses as subscribing members. Travel America Visitor Guide members ordinarily sign a perpetual recurring billing agreement where they pay an annual or semi-annual or monthly fee for services or to be listed in or on TravelAmericaVisitorGuide.com, the mobile website and inside the app on iTunes, Windows Phone, Amazon Appstore, Android markets. As an example, in the last 20 days, 12 major hotel brands signed on to be members of the TAVG properties. Monster Arts believes that with additional capital expenditures in the areas of sales and marketing, new product development and R&D, the TAVG recurring revenue model has much potential for continued, long term growth, and should prove to be a reliable foundation for the company's top line and bottom line growth, all while at the same time maintaining the company's overall focus on mobile marketing.
Commented Monster Arts' CEO, Wayne Irving II, "The acquisition of Travel America Visitor Guide makes perfect sense for us at this stage in our business timeline. Irving continued by observing, "We see a lot of potential to build on this already popular brand, as well as many ways to tie in existing Monster Arts apps with those of Travel America Visitor Guide, as part of a larger plan to create even more exciting possibilities for mobile users. One example that comes to mind is the way this acquisition enables us to integrate offerings and coupons with directory listings via a Monster Offers/Dealies app integration."
About Monster Arts
Monster Arts (formerly Monster Offers) is a public company recently created from the merger of Ad Shark, Inc., an innovative leader in mobile marketing advertising consulting, with and into Monster Offers, a leading daily deal analytics provider and aggregator. More information about Monster Arts can be found by visiting the company's website located at www.monsterarts.net, or at http://www.monsterdailydeals.com/.
About Travel America Visitor Guide
Travel America Visitor Guide, now itself a division of Monster Arts, is committed to providing its membership with the ability to develop and maintain an intimate connection between their businesses and potential consumers or customers who look to have the best experiences while traveling, in terms of purchasing information and options. With apps on the Android and Apple markets, TAVG is becoming a "go to" or must-have option for the vacationer who is looking for up to date resources during their trips or stays. For more information, visit http://www.travelamericavisitorguide.com/.
Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including, but not limited to, the risks associated with the management appointment described in this press release, and other risks identified in the filings by Monster Arts, Inc. (APPZ), with the U. S. Securities and Exchange Commission. Further information on risks faced by APPZ are detailed in the Form 10-K for the year ended December 31, 2012, and in its subsequent Quarterly Reports on Form 10-Q. These filings are or will become available on a website maintained by the U. S. Securities and Exchange Commission at http://www.sec.gov. The information contained in this press release is accurate as of the date indicated. Actual results, events or performance may differ materially. Monster Offers does not undertake any obligation to publicly release the any revision to these forward-looking statements that may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements.
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