Quepasa Corporation announced that it has entered into a transaction with Mexican and Americans Trading Together, Inc. (MATT) a privately held company focused on investments in the U.S. and Mexico. Under the terms of the transaction, MATT Biz has invested $10 Million dollars in Quepasa and agreed to assist Quepasa in generating advertising revenue in exchange for 1 Million shares of common stock and two ten-year warrants.
The first warrant entitles MATT Biz to purchase 1 Million shares of common stock from the Company at $12.50 per share. The second warrant entitles MATT Biz to purchase 1 Million shares of common stock from the Company at $15.00 per share. Both warrants are subject to price adjustments dependant on advertising and other commercial revenues generated by MATT Biz for the benefit of Quepasa. After all possible adjustments, both warrants have a floor price of $10 per share. MATT Biz also received the right to designate one person for appointment to Quepasa Corporation's Board of Directors.
"Quepasa welcomes MATT Biz's significant capital investment," said Robert B. Stearns, Chairman and Chief Executive Officer of Quepasa Corporation. "This relationship provides Quepasa with superb opportunities to fortify our advertising and product-related revenues from major Mexican and Latin American corporations."
"What this does is give MATT.Org a whole lot of muscle, and enables us to grow immediately into what it would have takes us seven or 10 years. Lionel Sosa is MATT.org's CEO, said that
"Quepasa is primarily entertainment and information now, and with the MATT.Org partnership we add empowerment," Mr. Sosa said. "By adding engagement with entertainment, it makes them more whole, a totally whole Web site, and MATT.org become a service to Quepasa." MATT.Org focuses on political and current events, with a healthy dose of commentary.
In March, Richard L. Scott Investments LLC and Associates acquired warrants with Quepasa that could be exercised at $3, $7 and $11, and in August exercised the first batch for a million shares, providing $2.87 million in liquidity for Quepasa.
For more information: QuePasa's Banner Ad Business Overtakes Search Advertising