iSIGN Media Solutions Inc., the developer of the location-based interactive IMS 3.1 solution, has signed a letter of intent to acquire all of the issued and outstanding shares and secured debt of digital signage network operator Pinpoint Media Group Inc., for the issuance of 7.5 million iSIGN treasury shares. In addition iSIGN will provide a $250,000 secured loan prior to the closing in order to fully recapitalize Pinpoint.

The transaction is subject to executing a legally binding purchase agreement, TSX Venture Exchange approval as well as satisfactory renegotiation of the Virtual Private Advertising Network Agreement (“VPAN”) with Alimentation Couche-Tard Inc., for their in-store digital advertising contract that will utilize iSIGN’s technology.

“We will be acquiring a network of approximately 5,600 digital display units located in a national convenience store chain, as well as the 300 digital display units that will be in the city of Calgary’s municipal buildings. Using the metrics that we are gathering from our installations in the convenience stores, we will be negotiating with advertising agencies and brands that currently utilize the network to grow the $2.2 million in revenues that Pinpoint realized in their last fiscal year. In addition, we will be able to increase the speed of the installations of our patent-pending software into Pinpoint’s network, that will result in a faster realization of our own revenue.”, said Alex Romanov, iSIGN’s Chief Executive Officer.

“This network will be used as a showcase to present to the advertising and retail communities, the power that traditional digital signage, integrated with and enhanced by our IMS 3.1 software solution has and how it can bring to advertising campaigns tremendous benefits that would be realized by other retailers and operators in a variety of vertical markets (ex:restaurants, fast food outlets, shopping malls, car dealerships, theaters, real estate offices, etc).”

Alimentation Couche-Tard Inc is the leader in the Canadian convenience store industry, doing business under the Couche-Tard and Mac’s brands and in the United States, as Circle K.