Published On: Mon, Oct 6th, 2014

Single Touch Systems Inc. (OTCBB:SITO): Bolsters Balance Sheet with $11 Million in Financing

Single Touch Systems Inc. (OTCBB:SITO) secured $11 million in financing, including $1 million in equity investment and $10 million credit facility from Fortress Investment Group. The credit facility is backed by SITO’s intellectual property portfolio. In exchange, SITO will issue approximately 2.62 million new shares of common stock at $0.3817 per share to Fortress. The new investment will help the company retire its current debt, fuel its operations and continue IP monetization.

SITO’s interim CEO, Jerry Hug, mentioned the fresh investment will help the company embrace it potential in the rapidly evolving mobile advertising and marketing space. The financing will help SITO deepen the reserves, drive the next stage of product development and organic growth. In addition, it will also allow flexibility for selective acquisitions. Hug noted that the investment will strengthen SITO’s balance sheet and eliminate chances of future dilution. The financing underscores the company’s commitment to improving operational plans and deliver shareholders’ value.

Single Touch Systems Inc. (OTCBB:SITO) is a mobile location-based advertising platform serving several brands and advertisers. The company leverages it patented technologies and easy-to-use platform. Its solutions help customers create targeted content for key audiences based on their location, behaviors, interests and loyalty. SITO allows marketer to deliver actionable content in real-time to ensure consumer engagement. In addition, the company’s solutions also help marketers make informed decisions using key measurements and analytics for a particular campaign. Its text-messaging service allows businesses to be more intimate and personal while engaging with their consumers. SITO’s mobile platform allows sending highly personalized reminder messages base on consumer’s purchase history and preferences.

Fortress Investment Group LLC (NYSE:FIG) is a diversified investment management firm with close to $64 billion in assets under management. The company manages assets on behalf of private investors and institutional clients across a range of liquid hedge funds, private equity, credit and traditional asset management.

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