Mr. Cameron Watt reports

INTOUCH INSIGHT LTD. ANNOUNCES A DEFINITIVE AGREEMENT TO ACQUIRE ALTA360 OF TOLEDO, OHIO

On Sept. 15, 2023, Intouch Insight Ltd. entered into a definitive agreement to acquire all outstanding shares of Brand Equity Builders Inc. (BEB), the parent company of both Alta360 Research Inc. and its sister company, Ardent Retail Services Inc., subject to TSX Venture Exchange approval. Alta is a U.S. customer experience measurement company that has provided services across the United States since 1999. Ardent is a new venture offering in-store services such as merchandising and rebranding. The letter of intent was signed on June 2, 2023, and the targeted closing date is Oct. 1, 2023.

"Of all the acquisitions we have done, this one may have me the most excited. The value in an acquisition is not only the customers and revenues but also the reputation and talent that comes with the acquired company. The Alta team has a great deal of tenure and knowledge at all levels and the current owner, Stan Hart, is also the current president of the industry association, the MSPA. Having served on the MSPA board of directors with Stan in the past, I can attest to his abilities and character, and I am very pleased to be able to team up with him and his company," said Cameron Watt, president and chief executive officer of Intouch.

Alta had calendar 2022 annual revenues of $5-million (U.S.) and EBITDA (earnings before interest, taxes, depreciation and amortization) of 8 per cent. Intouch will not assume any long-term debt from the vendor and the transaction is arm's length from Intouch. The purchase price for the acquisition is a combination of cash and a promissory note. The purchase price is $3,125,000 (U.S.) in cash, of which $1.5-million (U.S.) is payable at closing, along with a promissory note for $500,000 (U.S.), and $1,125,000 (U.S.) is payable over the next four years based on achievement of Alta revenue targets and Ardent gross profits. Intouch plans to finance the acquisition with a five-year term bank loan for $2-million and from its existing cash resources. No finder's fees are payable by Intouch. Upon closing, Stanley Hart, the chief executive officer of BEB, Alta and Ardent, will be joining Intouch, with a focus on assisting with revenue growth.

"Selling my business was not a decision that I took lightly but I am very pleased with the outcome and that my customers and my employees will have such a great new home. When you look at the technological advantage that Intouch has in the industry and then get to understand its leading culture and capabilities, you cannot help but want to join forces and work towards industry domination," said Mr. Hart.

"This acquisition is in line with our overall growth strategy and will not only add velocity to the growth of our services revenues but will also provide us with an avenue for accelerated growth through Ardent. It also provides a customer base to whom we will be able to sell additional products and services, including our SaaS [software as a service] offerings. Between the incoming revenues, the potential new opportunities and the additional skilled labour, this acquisition is expected to be a springboard for Intouch in 2024," said Mr. Watt.

About Intouch Insight Ltd.

Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America's most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, geolocation data capture, and event marketing automation solutions.

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