AdSupply, Inc. made a formal proposal to acquire Adaptive Medias, Inc. (OTCPK:ADTM) for $35 million in cash on January 27, 2016. AdSupply will pay $1.5 per share of Adaptive Medias. AdSupply, Inc. signed a letter of intent to acquire Adaptive Medias, Inc. (OTCPK:ADTM) in cash and stock on March 28, 2016.

Under the terms, $8 million cash will be paid along with the common stock issuance. Unless AdSupply can structure a deal where AdSupply can finance the transaction through internal cash flows, AdSupply intend to engage an investment bank to raise the necessary capital. Adaptive Medias' Board of Directors will form an advisory committee to evaluate AdSupply's proposal and make a recommendation to Adaptive Medias' shareholders.

AdSupply's proposed offer is subject to the negotiation of definitive merger agreement, Board approvals, completion of confirmatory due diligence, obtaining financing and approval by Adaptive Medias' shareholders. The transaction is expected to close in the second quarter.