FOMO Worldwide Inc (IGOT)

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FOMO CORP. UPDATES DUE DILIGENCE ON SMARTGUARD ENERGY DEAL
11:33 AM ET 8/24/21 | GlobeNewswire

FOMO CORP. UPDATES DUE DILIGENCE ON SMARTGUARD ENERGY DEAL

Chicago, IL, Aug. 24, 2021 (GLOBE NEWSWIRE) -- FOMO CORP. (OTC: FOMC) is updating investors on its due diligence for the acquisition of SmartGuard Energy (SGE - https://smartguard-energy.com/). A summary of the due diligence was published on August 23, 2021, via an SEC Form 8-K. Supporting documentation for the 8-K summary may be obtained by executing a non-disclosure agreement.

Background
-- SGE has two entities -- LEDF IV and Lux Solutions;

-- LEDF IV and Lux are managed separately but work closely as a team;

-- LEDF I, II, and III are part of the successful LEDF legacy, but are separately owned and not part of the SGE acquisition;

-- LEDF IV has its own sales team and generates its own energy deals, such
as with Stein Mart, CitiTrends, and many other leading companies;

-- In the U.S., Lux provides lighting, energy audits, and energy management products & services; LEDF IV provides financing for the Lux clients that require it;

-- In Puerto Rico (PR), LEDF IV provides financing for the clients of ESCOPR, the largest energy services company in Puerto Rico. SGE has had a long and productive relationship with ESCOPR.

Summary of Findings

Based on our due diligence and the substantial documentation provided by SmartGuard to FOMO CORP., we have determined that:
-- SGE (LEDF IV + Lux) is a profitable organization;

-- SGE has an exceptionally talented leadership team;

-- SGE has a robust sales funnel;

-- The SGE acquisition is a sizable opportunity for FOMO CORP., especially given the large amount of funding available in LED lighting, energy management, and clean energy; and,

-- Upon completion of the acquisition, FOMO would potentially accrue revenue from current LEDF IV and Lux projects which may be reported on the FOMO 3rd quarter 10-Q, and the FOMO financials would potentially be enhanced.

Highlights for Lux

-- Total LED Project Opportunities for Lux 163
Total Project Value $15,571,775.00
Weighted Project Value $ 7,105,475.00

-- Total Energy Services Opportunities for Lux 41
Total Project Value $ 8,329,125.00
Weighted Project Value $ 1,860,000.00

-- Total Combined Opportunities 204*
Total Potential Project Value $23,900,900.00
Weighted Potential Project Value $ 8,965,475.00


*Does not include stream of annuitized revenues that LEDF can structure for some of the Lux projects.

Highlights for LEDF IV

The LEDF IV As-a-Service model which is expected to be applied to the Claro Projects in Puerto Rico (and elsewhere), is projected to provide 10-year annuitized revenue of $2.8MM. An additional Puerto Rico project referred to as the "PR Treasury and & Lottery Buildings" project is projected to provide an additional $1.4MM of annuitized revenue over 10 years for a total annuitized revenue stream of $4.2MM for just these projects. There are many other opportunities under various stages of negotiation.

Other SmartGuard News

The As-a-Service model is also being offered by SmartGuard's disinfection business (SmartGuard Solutions -- SGS - https://smartguard-solutions.com/) to clients who want to improve their indoor air quality (IAQ). With the spike in COVID from the Delta variant, IAQ has become a critical issue for students returning to school and people returning to work. The SGS UV-C fan, which is being sold to the U.S. Navy under a non-compete bidding status, has helped to streamline the process and UV-C fans are now being sold in San Diego, Guam and Hawaii. In addition, SGS has received an initial order from a large publicly traded REIT on the west coast with over 24MM square feet of commercial office space. The revenue from that order alone using the As-a-Service model would potentially generate over $1MM in revenue over the next four years. The REIT intends to deploy the UV-C fan in the rest of their office space in the U.S. SGS expects its business to continue to grow as IAQ is increasingly important to reduce the spread of COVID and other pathogens.

William Butler, CEO of SmartGuard, commented: "We look forward to joining FOMO at this most opportune time. With the new emphasis on energy management and clean tech and the continued threat of COVID, SmartGuard has experienced a substantial increase in its business in the past several months. Once the SGE acquisition has been completed, our revenues would be reported in the FOMO financial statements which would benefit FOMO shareholders."

Said Vik Grover, FOMO CORP. CEO: "I look forward to completing the acquisition of SGE having executed a thorough due diligence process. While we finalize our analysis, we can see that SGE has a profitable business with an excellent sales funnel. This can create upside for FOMO shareholders. We are extending the closing date to October 31, 2021 under mutual agreement and in discussions with institutional investors to finance this transaction and others underway."