Benzinga | Mar 30, 2021 02:21PM EDT

Logiq Shares Are Trading Higher Following Q4 Results, Rebel AI Acquisition

* E-commerce and fintech solutions provider Logiq Inc (OTC: LGIQ) acquired Rebel AI, a digital marketing solutions innovator. The Rebel AI platform will be named Logiq Digital Marketing and will support the survival of small and medium-sized businesses (SMB) against larger companies for new customers.

* Marketers could advertise across websites and connected TV media destinations through a simplified platform under the arrangement.

* The platform's audience targeting, artificial intelligence algorithms, and blockchain-based security will also reduce customer acquisition costs.

* The financial terms of the transaction were not disclosed.

* Logiq reported a pandemic induced year-on-year revenue decline of 34.3% to $6.6 million in the fourth quarter of FY20, missing the consensus estimate of $6.7 million.

* The company's AppLogiq mCommerce platform-as-as-service (PaaS) accounted for 32.1% of the revenue. The segment revenue declined 78.9% due to the pandemic and the company's transition towards lower revenue and higher-margin business.

* The gross margin expanded 250 basis points to 21.1%.

* Net loss per share rose 8.5% to $0.51, missing the analyst estimate of $0.17.

* Logiq held cash and cash equivalent of $3.5 million as of Dec. 31, 2020.

* The company initiated to up list the stocks on Canada's NEO Exchange.

* Logiq also launched a new food delivery service for Indonesian Pondok Indah Mall shoppers. It appointed Steven J. Hartman as Chief Product Officer.

* Price action: LGIQ shares are trading higher by 3.5% at $6.21.