International Display Advertising, Inc. (PINKSHEETS: IDAD) ("Display Ads") The Company is excited to announce that it has restructured a new agreement with Display Point Technologies LLC (Display Points) that will modify the licensing fee structure to provide a net 400% increase in revenue over its existing agreement.
In the previous contract, IDAD was to receive 4% of all gross Ad Network revenue from international venues outside of the United States. With the new arrangement, IDAD will now receive 20% of all gross Ad Network revenue and subsequently pay a 20% royalty to Display Point Technologies, LLC which allows IDAD to keep a net 16% of total International Ad Network gross revenue. For example, IDAD's existing licensing agreement with Bamboo Beat Media in South Africa will now yield projected annual revenues of $20 million USD annually instead of $5 million that was anticipated under the previous agreement.
Display Points feels that IDAD is better equipped to serve the diverse needs of the international community due to its unique positioning and upcoming personnel appointments. The new agreement will allow Display Points to focus primarily on network infrastructure support while IDAD will focus on licensee evaluation, training, marketing and maintaining good licensee relations. In each market that IDAD expands the Display Points Network they will be establishing satellite offices to assist country licensees, their advertisers and venues in optimizing the network capabilities.
Dave Hazzard, President of International Display Advertising, Inc. stated, "Although this new agreement has led to the issuance of 56.25 million restricted common shares to Display Point Technologies and consequently increases IDAD's share capital by approximately 129%, I believe very strongly that the compensatory 400% increase in revenues to the Company will boost shareholder value far more than ever could have been done under the previous contract. I am truly elated for the future prospects of major success marked for IDAD regarding profitability, growth and optimization to shareholder value!"
