Investment Criteria and Benefits

CIS Acquisition (i) will primarily use its raised capital and shares (together with a potential use of leverage) to finance a transaction; (ii) will enable the target to become a publicly traded company; (iii) could allow the original owner(s) to maintain significant ownership depending on the structure. CIS Acquisition will deliver financial and strategic support through its team of highly experienced partners and investment professionals to support the growth and strategy of the target company. CIS Acquisition's Board of Directors has identified the following criteria and guidelines that it believes are key in evaluating prospective target businesses. CIS Acquisition expects to enter into a Business Combination with a target business satisfying one or more of the following criteria:

Companies with track records
  • Companies with sound historical financial performance
  • History of strong operating and financial results
Companies with strong free cash flow characteristics
  • History of strong, stable, free cash flow generation
  • Predictable, recurring revenue streams
Strong competitive industry position
  • Operate within industries that we believe have strong fundamentals
  • Competitive dynamics, level of consolidation
Experienced management team
  • Track record of driving revenue growth
  • Enhancing profitability and generating strong free cash flow
Benefits to potential merger company

Strategic
  • Establish a capital market platform for future capital raising
  • Direct access to public market liquidity
  • Leverage public market acquisition currency
  • Optimize stock exchange and economic opportunity timing
  • Access to a network of investors, banks, agents and analysts
Economic
  • Cash at close
  • Potential cash from warrant exercise
  • Accelerated closing time-frame insulates merger valuation from extended market fluctuations
  • Possible Cash Out for the shareholders of Company
Ownership/Control
  • Owner of target is expected to retain majority share ownership
  • Current CEO and Chairman would be expected to continue control of operations of the Company
Time Advantage
  • Merger is not a subject to lengthy SEC review process
  • Approximately three to four months for deal closing