The Lomotif platform is one of the best social media video sharing applications today
Definitive agreement gives majority control interest to ZASH
BETHLEHEM, Pa. and SINGAPORE, February 23, 2021 / PRNewswire / – Vinco Ventures, Inc. (NASDAQ: BBIG) – ZASH Global Media and Entertainment Corporation (“ZASH“), the disruptor of the entertainment industry led by the co-founders Ted Farnsworth, financier and former president of MoviePass, initial investor of Musical.ly (now TikTok) Jaeson Ma, and Triller’s first visionary and board member, Vincent Butta, entered into a definitive agreement to acquire a majority stake in Lomotif Private Limited (“Lomotif“), a Singaporebased on the leading video sharing social networking platform and rising rival of TikTok and Kuaishou (1024.HK on the Hong Kong Stock Exchange). The closing of the acquisition of Lomotif by ZASH is scheduled to occur simultaneously with the closing of the merger and business combination of ZASH with Vinco Ventures, Inc. (“Crease“), which was previously announced in a joint press release on January 2021. The closing of the acquisition of Lomotif is subject to certain customary closing conditions, as described in the final purchase agreement.
Upon completion of the merger between ZASH and Vinco, ZASH will become a public company and controlling shareholder of Vinco, making Lomotif one of the leading pure and global video sharing social networking platforms owned by a publicly traded company from the USA, competing with TikTok and Kuaishou in space.
ZASH believes that Lomotif is one of the fastest growing video sharing social networking platforms in its category in the past three years and in Asia, Europe and South America, Lomotif increased its average monthly community by more than 400 percent in this period. Historically, more than 10 billion atomic clips (User Generated Content (UGC)) have been used to create more than 740 million videos on the platform since its launch.
The following additional data also shows the dominant and global traction of the Lomotif platform user and the range that ZASH believes to demonstrate enormous untapped value and the growth potential of Lomotif:
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Over 10 billion atomic video clips Lomotif
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Over 740 million super video clips created to date
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More than 225 million installations globally (in more than 200 countries in more than 300 languages)
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Lifetime community of over 210 million
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Over 160 million lifetime viewers (iOS / Android)
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Over 120 million lifetime creators
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Over 300 million videos watched on the platform per month
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Over 90 minutes of engagement on average with top users
Founder and CEO of Lomotif, Paul Yang, will continue to lead Lomotif after the acquisition is completed. “With the partnerships that ZASH has established and planned,” said Yang, “we are a natural fit. As an emerging participant in creating user-generated videos, we are excited to be part of the overall content of ZASH and distribution plans and strategies. and we look forward to accelerating the growth and adoption of Lomotif around the world. “
“Lomotif is the key piece of ZASH’s strategy to merge the best media, entertainment and technology companies focused on content globally,” said Ted Farnsworth. “The platform is fun and engaging and its features are unique and innovative. We look forward to expanding the platform in the United States and around the world.”
“Having had experience building another video sharing social networking platform, it quickly became clear that Lomotif’s patented video mixing and editing technology is unmatched.” said Vince Butta. “ZASH will focus Lomotif on an advertising model in the future, as well as other means of monetization in the coming months.”
“Lomotif is a global platform with many followers in Asia and Latin America and together with ZASH, it will replicate that success in the US and other markets, “said Jaeson Ma. “In today’s world of mass-reduced content consumption, we see the addition of Lomotif to the ZASH family as an incredible opportunity to leverage our content in all formats and expand our worldwide distribution platform.”
The investment bank BTIG represented ZASH on the buy side of the transaction. Palladium Capital acted as a consultant in the capital increase to finance the transaction. The media and entertainment team led by Tom K. Ara and including Patrick Anding at the law firm DLA Piper LLP negotiated and advised ZASH about the Lomotif business and is also advising ZASH on its merger with Vinco. Cooley LLP represented Lomotif in the transaction.
For more information on ZASH’s proposed merger with Vinco, see the press release (https://investors.vincoventures.com/press-releases/detail/78/musical-ly-tiktok-triller-and-moviepass -innovators-unite) and the Crease 8-K filed in January 19, 2021 (https://sec.report/Document/0001493152-21-001470/).
About ZASH Global Media and Entertainment Corporation
ZASH Global Media and Entertainment Corporation is an evolving network of synergistic companies that work together to destabilize the media and entertainment industry as we know it today. The ZASH team is managed by a group of smart, if not a little brazen, consummate deregulators. ZASH believes that its management team has an exceptional and incomparable capacity to pivot because its knowledge and experience are constant and inflexible. For additional information about ZASH Global Media and Entertainment Corporation, visit the ZASH website at www.zash.global.
About Lomotif
Lomotif is the leading video sharing social networking platform that is democratizing video creation. Since the company was co-founded by a video enthusiast Paul Yang in 2014, Lomotif received three technology patents exclusively focused on enabling creators to easily share and watch short videos through remix and collaboration. Yang’s bold vision is to build the world’s largest video vocabulary to accelerate the world’s transition to the first expression of the video. Lomotif, available at Apple and Google stores, is an innovative application for downloading hip hop, rap and urban culture across the United States and Latin America. Lomotif is one of five partners selected by Snapchat for bidirectional integration and story posting between the two platforms. For additional information about Lomotif Private Limited, visit the Lomotif website at www.lomotif.com.
About Vinco Ventures, Inc.
Vinco Ventures, Inc. (NASDAQ: BBIG) is a merger and acquisition company with a focus on digital commerce and consumer brands. Vinco’s BIG strategy (Buy. Innovate. Grow.) Will seek acquisition opportunities that are positioned on a scale and will increase these acquisitions through targeted traffic and content campaigns. For more information, see Vinco’s presentation to the investor or visit Investors.vincoventures.com.
Forward-looking statements and disclaimers
This press release contains “forward-looking” statements in accordance with the meaning of federal securities laws. Forward-looking statements include, but are not limited to, statements relating to or implying future financial performance, anticipated product performance and functionality of ZASH products or products that incorporate ZASH products, and industry trends and growth opportunities that affect ZASH. This information is based on beliefs and information currently available for ZASH management, as well as estimates and assumptions made by ZASH management. These statements can be identified by the fact that they are not strictly related to historical or current facts. When used in this presentation, the words “estimate”, “expect”, “intend”, “believe”, “plan”, “anticipate”, “project” and other words or the negative of these similar terms and expressions related to ZASH or ZASH management identifies forward-looking statements. These forward-looking statements include statements regarding potential commercial synergies resulting from the acquisition of Lomotif by ZASH and the proposed merger of ZASH with Vinco, the potential market for ZASH and Lomotif product offerings, customer adoption and use of the Lomotif platform, and ZASH’s ability to monetize product offerings, including the Lomotif platform. Such statements and other forward-looking statements in this press release reflect ZASH’s current view with respect to future events and are subject to risks, uncertainties, assumptions and other factors related to the industries, operations and results of operations of ZASH and Lomotif and any businesses that can be acquired by ZASH. If or more of these risks or uncertainties materialize, or the underlying assumptions are incorrect, the actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Although ZASH believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievements. All forward-looking statements are qualified in their entirety by this precautionary statement. ZASH is providing this information as of the date of this release and assumes no obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
Media contacts
Dennis Dembia / R & CPMK
[email protected]
+1 310 854 8114
Jason Magner / R & CPMK
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+1 310 854 8128
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