TEL AVIV, ISRAEL / ACCESSWIRE / August 26, 2020 / A2Z Smart Technologies Corp. ("A2Z" or the "Company") (TSXV:AZ) (OTCQB:AAZZF), an innovative technology company specializing in state-of-the-art automation and electronics technology, today announces that it has entered into an engagement agreement with Orion Underwriting and Issuances Ltd. (the "Agent"), who will act as agent, to carry-out a best efforts private placement (the "Offering") of up to 19,008,000 subscription receipts (the "Subscription Receipts") at a price of CAD$0.625 per Subscription Receipt (the "Offering Price"). It is anticipated that the Offering will raise aggregate gross proceeds to the Company of up to US$9,000,000. The Agent is entitled to a cash commission equal to 5% of the gross proceeds of the Offering.

The Company intends to use US$2,000,000 of the net proceeds of the Offering to fund the acquisition (the "Acquisition") of a certain amount of securities (the "Target Shares") of a technology company specializing in smart shopping carts technology (the "Target") and the remainder for general working capital. The Company presently owns an option to acquire 19% of the Target. Mr. Bentsur Joseph, the Chief Executive Officer and a director of the Company owns approximately 80% of the Target. After completion of the Acquisition the Company would own at least 51% of the Target.

Each Subscription Receipt will automatically convert into one unit (a "Unit") of the Company on the satisfaction or waiver of all conditions precedent to the Acquisition and certain other ancillary conditions customary for transactions of this nature (collectively, the "Release Conditions"), without the payment of additional consideration or the taking of further action on the part of the subscriber. Each Unit will be comprised of one common shares in the capital of the Company ("Common Shares") and one full non-transferable common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire one additional Common Share (each, a "Warrant Share") at a price of CAD$0.90 per Warrant Share for a period of five years following the closing date of the Acquisition (the "Acquisition Closing").

The Company and the Agent have agreed that should the market conditions require, a certain amount of the Offering may be placed in subscription receipts convertible into an unsecured convertible loan (the "Convertible Securities") instead of Units (the "Note Subscription Receipts"). The Convertible Securities, issuable without payment of additional consideration or the taking of further action on the part of the subscriber upon fulfillment of the Release Conditions, will be exercisable into Common Shares, at an exercise price of CAD$0.71 per Common Share, for a period of five years following the Acquisition Closing. The Convertible Securities will bear interest at a commercially reasonable rate and such interest will be payable in cash.

The issuance of Common Shares and Warrant Shares (collectively, the "Securities") upon conversion of the Subscription Receipts, or the Note Subscription Receipts, if any, to subscribers who will own 10% or more of the outstanding Common Shares, is subject to compliance with the TSX Venture Exchange ("TSXV") rules and requirements regarding 10% shareholders. In the event that these rules and requirements are not met, the TSXV will not allow the Company to issue Securities in excess of 10% of the outstanding Common Shares to such subscribers. In such event, subscriptions by these shareholders will either be reduced to below 10%, withdrawn entirely, or re-allocated in whole or in part to meet the TSXV's requirements.

The gross proceeds of the Offering will be held in escrow pending the satisfaction of the Release Conditions. In the event the event the Acquisition does not occur on or before November 28, 2020, the gross proceeds shall be returned to the subscribers' pro rata without any deduction or interest, and the Subscription Receipts, or Note Subscription Receipts, if any, shall be automatically cancelled.

The Acquisition is a "Related Party Transaction" (as such term is defined in "Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions" (the "Instrument")) as the Target Shares are owned by Mr. Bentsur Joseph the CEO and a director of the Company. The Company will comply with the Instrument but expects to rely on the exemptions available in Sections 5.5 and 5.7 of the Instrument as they relate to the Acquisition.

The Offering is expected to close on or about September 30, 2020, and it as well as the Acquisition are subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approvals of the TSXV.

Disclaimer: The TSX Venture Exchange Inc. has in no way passed upon the merits of the Company has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors – including the availability of funds, the results of financing efforts, the results of exploration activities — that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

Corporate Contact:

Gadi Levin
+972-8-932-4333
gadi@a2zas.com

Investors:

ClearThink
nyc@clearthink.capital

SOURCE: A2Z Technologies Canada Corp.

ReleaseID: 603448

The Filings Monitor module on Kubro(TM) platform by Robotic Online Intelligence (ROI) helps investors and data companies filter and mine the filings in a very customised fashion, whether for desktop, email alerts or via API.

HONG KONG SAR, CHINA / ACCESSWIRE / August 26, 2020 / With the use of regular expressions (Regex), Kubro(TM) allows users to specify more complex queries applied to the contents of the documents. Regex can be a powerful tool in mining the text documents – (ref. a note on this topic https://lnkd.in/euEbRVr).

Current coverage includes: 10-K, 10-K/A, NT 10-K, 10-Q, 10-Q/A, NT 10-Q, 20-F, 20-F/A, NT 20-F, 6-K, 6-K/A, 8-K, 8-K/A, F-1, F-1/A, S-1, S-1/A, 13F-HR, 13-HR/A, 13F-NT, 13-NT/A, D, D/A, SC 13D, SC 13D/A

SCREENSHOT FROM KUBRO(TM):

Public filings are a very rich source of market intelligence, not only about the company who files but also, often even more so, on the specific sector overall. Aggregate statistics derived from the analysis of the text of the filings can illuminate broader macro trends. 

For example, we compared the number of mentions of words related to Covid-19 in the 10-Q SEC filings for Q1 and Q2, for a consistent set of companies. There was an 18% increase overall, and among 2,750 companies (dots on the chart below), the median of the percentage increase of mentions in Q2 vs Q1 was 16% or 74 mentions. On the chart, the ones above the 45 degree line saw an increase in Q2 vs Q1:

The Filings Monitor is available as a standalone module or as an add-on to Kubro(TM) – the market intelligence engine by Robotic Online Intelligence.

Free trials available for institutional players, email support@roboticonline.ai

== END ==

ABOUT ROBOTIC ONLINE INTELLIGENCE LTD

Robotic Online Intelligence (ROI), founded in 2017 and based in Hong Kong, provides AI-powered tools for data, research and investment firms, helping them save a significant amount of time in research of publicly available intelligence – through automation and workflow tools for data teams – in the search, collection, filtering, and communication of information.

Robotic Online Intelligence was selected to Cyberport Incubation Programme in Hong Kong in 2019 and is based in Cyberport, Hong Kong SAR.

MORE INFORMATION

Request info or contact: support@roboticonline.ai
Website: http://www.roboticonline.ai
Follow on Twitter: @ROI_infobesity
Connect on LinkedIn: Connect with Robert Ciemniak / ROI
Ms Lijun Cao
+852 817 01 421

SOURCE: Robotic Online Intelligence Ltd

ReleaseID: 603442

Name Change, Reverse Stock Split, and Other Planned Corporate Actions Highlight Focus on Enhancing Shareholder Value

CLEVELAND, OH / ACCESSWIRE / August 26, 2020 / NovAccess Global Inc. (OTC PINK:XSNX), today effectuated a 1-for-1,000 reverse stock split in conjunction with its new name, in order to prepare for the business model being implemented by it's new Chairman of the Board, Dan Martin.

Mr. Martin purchased a controlling preferred interest in XsunX in June, 2020. The Company is coming off a decade of steady business performance, but with limited returns in the public market for its shareholders. Since his takeover, the Company's stock and market cap have appreciated by several hundred percent, a sign that the market is enthusiastic about these and other forthcoming changes.

"While the name change and reverse stock split actions are important and foundational, I am even more thrilled to move forward with the true value that will be achieved with developments detailed in the Company's filings with the Securities and Exchange Commission. In particular, the pending acquisition of StemVax Therapeutics from Innovest Global, the anticipated nomination of new executives, and the brand launch will truly position NovAccess for a successful, long-term business that improves lives and brings novel technologies to market.

Mr. Martin is the founder and Chairman of the Board of Innovest Global, Inc. (OTC PINK:IVST). Innovest launched in 2017 with $50,000 in sales and had a market cap at that time of $300,000. It generated $6.5 million in sales in 2018 and $40 million in sales in 2019, and has recently expanded, providing meaningful solutions to industrial and commercial customers. It's significant stake in NovAccess upon completion of the StemVax spinout is expected to achieve significant balance sheet milestones for Innovest, required for its eventual plan to apply for NASDAQ listing.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the OTC Markets. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Business Contact:

Chris Tyson
Senior Managing Director
MZ Group – MZ North America
949-491-8235
IVST@mzgroup.us
www.mzgroup.us

SOURCE: NovAccess Global Inc.

ReleaseID: 603155

VANCOUVER, BC / ACCESSWIRE / August 26, 2020 / Perk Labs Inc. (CSE:PERK)(OTCQB:PKLBF)(FKT:PKLB) ("Perk Labs" or the "Company") the parent company of Perk Hero, the all-in-one mobile ordering, contact-free payments and loyalty app, announced new m-commerce features are now available on the Perk Hero platform with the addition of support for dropshipping merchants. Perk Hero's mobile commerce capabilities, also known as mobile eCommerce or simply m-commerce, enables businesses to use the Perk Hero platform to create and manage their mobile storefront and sell their products to consumers purchasing via a mobile device.

"Our new m-commerce feature allows us to enter into the fast growing vertical of direct-to-consumer goods and offer exciting new high quality and niche products to our customers," says Perk Labs CEO, Jonathan Hoyles. "We empower businesses to provide their customers with an engaging mobile shopping experience and give them access to a new stream of revenue by selling their products through the Perk Hero platform. We further drive engagement and loyalty with our cashback rewards on every purchase."

By incorporating the dropshipping business model, Perk Hero now has the capability to enable both brick & mortar and e-commerce businesses to sell their products through the Perk Hero app, without having to add any inventory or shipping capabilities. Perk Hero provides merchants a mobile storefront and digitally notifies the business of orders placed through the app, including shipment details. The merchant then ships the products directly to the customer. As part of its digital loyalty flywheel, Perk Hero promotes its m-commerce merchants to customers with targeted digital advertising, increasing direct customer acquisition and product sales.

The latest news and information about Perk Hero's features can be found at www.perkhero.com and stakeholders can read about the Company's strategy and ongoing advancements in technology on the company blog, which can be viewed at https://medium.com/@perk_labs.

About Perk Labs Inc.

Perk Labs Inc. is the owner of Perk Hero, a digital loyalty management platform that enables merchants to provide their customers with contact-free payments, digital rewards and a more engaging and convenient customer experience. For more information about Perk Labs, please visit www.perklabs.io

For more information contact:

Jonathan Hoyles, CEO
Perk Labs Inc.
(833) 338-0299
investors@perklabs.io

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "may", "believe", "thinks", "expect", "exploring", "expand", "could", "anticipate", "intend", "estimate", "plan", "pursue", "potentially", "projected", "should", "will" and similar expressions, or are those, which, by their nature, refer to future events. These forward-looking statements, which involve risks and uncertainties, relate to, among other things, the discussion of the Company's business strategies and its expectations concerning future operations, that the combination of our m-Commerce feature and dropshipping business model provides Perk Hero a potentially lucrative advantage in one of the fastest growing markets for the sale of consumer goods. Although the Company considers these forward-looking statements to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking statements. Undue reliance should not be placed on such forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.

SOURCE: Perk Labs Inc.

ReleaseID: 603396

SINGAPORE / ACCESSWIRE / August 26, 2020 / Cryptocurrency derivatives exchange Bybit announced today the launch of onramps for Japanese yen and South Korean won, along with more than 20 other newly supported fiat currencies, on the Bybit Fiat Gateway. Also announced was the debut of Vietnamese language support.

The Bybit Fiat Gateway was introduced on June 22, enabling users to buy crypto (BTC, ETH and USDT) directly on the Bybit platform in just a few clicks and start trading in no time. The Bybit Fiat Gateway offers a variety of payment methods (including Visa and Mastercard), all at an ultra-low transaction fee. The addition of JP¥ and KR₩, along with more than 20 newly supported fiat currencies, brings the total number of supported fiat currencies to 43.

The new Bybit Fiat Gateway onramps were created in partnership with MoonPay, a financial technology company that builds developer tools for fiat-to-crypto payments.

In addition to the new fiat onramps, Bybit also announced the debut of sitewide Vietnamese language support.

"We are pleased to bring on MoonPay as a service provider to the Bybit Fiat Gateway to make buying crypto easier for our users who use JP¥ and KR₩, while the newly launched in-language support allows us to better serve our Vietnamese-speaking users," said Ben Zhou, Bybit CEO. "These efforts deepen our ties with Asia, and demonstrate our continued commitment to better serve our users in more and more localities."

About Bybit

Bybit is a cryptocurrency derivatives trading platform established in March 2018. The company is registered in the British Virgin Islands (BVI), and provides online trading services to individual retail clients as well as professional derivatives traders.

For more information please visit: https://www.bybit.com

For updates, follow Bybit's social platforms on Twitter and Telegram.

Contact:

Dan Edelstein
pr@marketacross.com

SOURCE: Bybit

ReleaseID: 603438

LOS ANGELES, CA / ACCESSWIRE / August 26, 2020 / Data443 Risk Mitigation, Inc. ("Data443" or the "Company") (OTC PINK:ATDS), a leading data security and privacy software company, today announced that CEO Jason Remillard will be presenting at the LD Micro 500 Virtual Conference on Tuesday, September 1st at 2:40 PM ET.

Mr. Remillard will provide an overview of Data443, discussing the recent acquisition of FileFacets®, along with recent contract wins with the NFL's Pittsburgh Steelers and the launch of the first privacy scanner for the world's leading video communications platform, Zoom.

To register for the presentation, visit: https://ld500.ldmicro.com/

"We have been waiting for this moment all year long. Due to COVID, it has been nearly impossible for physical conferences to even take place. I want to show the world that you can still learn, have a great time, and see some of the most unique companies in the capital markets today. All without having to step foot outside. For the first time, LD Micro is accessible to everyone, and we are honored to welcome you to one of the most trusted platforms in the space." stated Chris Lahiji, Founder of LD Micro.

The LD 500 will take place on September 1st through the 4th.

View Data443's profile here: http://www.ldmicro.com/profile/ATDS

Profiles powered by LD Micro – News Compliments of Accesswire

About Data443 Risk Mitigation, Inc.

Data443 Risk Mitigation, Inc. (OTC PINK:ATDS), is the de facto industry leader in Data Privacy Solutions for All Things Data Security, providing software and services to enable secure data across local devices, network, cloud, and databases, at rest and in flight. Its suite of products and services is highlighted by: (i) ARALOC™, which is a market leading secure, cloud-based platform for the management, protection and distribution of digital content to the desktop and mobile devices, which protects an organization's confidential content and intellectual property assets from leakage – malicious or accidental – without impacting collaboration between all stakeholders; (ii) ArcMail ™, which is a leading provider of simple, secure and cost-effective email and enterprise archiving and management solutions; (iii) ClassiDocs™, the Company's award-winning data classification and governance technology, which supports CCPA, LGPD and GDPR compliance; (iv) ClassiDocs™ for Blockchain, which provides an active implementation for the Ripple XRP that protects blockchain transactions from inadvertent disclosure and data leaks; (v) Data443™ Global Privacy Manager, the privacy compliance and consumer loss mitigation platform which is integrated with ClassiDocs™ to do the delivery portions of GDPR and CCPA as well as process Data Privacy Access Requests – removal request – with inventory by ClassiDocs™; (vi) Data443™ Chat History Scanner, which scans chat messages for Compliance, Security, PII, PI, PCI & custom keywords; (vii) DATAEXPRESS®, the leading data transport, transformation and delivery product trusted by leading financial organizations worldwide; (viii) FileFacets®, a Software-as-a-Service (SaaS) platform that performs sophisticated data discovery and content search of structured and unstructured data within corporate networks, servers, content management systems, email, desktops and laptop; (ix) The CCPA Framework WordPress plugin, which enables organizations of all sizes to comply with the CCPA privacy framework; and (x) the GDPR Framework WordPress plugin, with over 30,000 active users it enables organizations of all sizes to comply with the GDPR and other privacy frameworks. For more information, please visit http://www.data443.com

The Data443™ logo, ClassiDocs™ logo, ARALOC™ logo, FileFacets® and DATAEXPRESS® are registered trademarks of Data443 Risk Mitigation, Inc.

All product names, trademarks and registered trademarks are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

All other trademarks cited herein are the property of their respective owners.

For Further Information:

Follow us on Twitter: https://twitter.com/data443Risk
Follow us on Facebook: https://www.facebook.com/data443/
Follow us on LinkedIn: https://www.linkedin.com/company/data443-risk-mitigation-inc/
Signup for our Investor Newsletter: https://www.data443.com/investor-relations/

Investor Relations Contact:
Matthew Abenante
ir@data443.com
919.858.6542

SOURCE: Data443 Risk Mitigation, Inc.

ReleaseID: 603420

BONITA SPRINGS, FL / ACCESSWIRE / August 26, 2020 / Innovative Food Holdings, Inc. (OTCQB:IVFH) ("IVFH" or "the Company"), a nationwide direct provider of unique specialty food and specialty grocery items, today announced that it will be presenting at the LD 500 Investor Conference Thursday, September 3 at 4:00 pm ET. Sam Klepfish, CEO of Innovative Food Holdings will be presenting to a live virtual audience and will be available for virtual 1×1 meetings.

"I am excited to update the investment community on our recent progress, including additional details on how the COVID-19 pandemic has accelerated our ongoing transformation to a digitally-enabled, e-commerce-centric, direct-to-consumer and direct-to-chef company as second quarter e-commerce sales increased over 317% to a second quarter record $7.5 million," stated Sam Klepfish, CEO of Innovative Food Holdings.

The LD 500 will take place on September 1, 2020 – September 4, 2020. For those interested in having a meeting with IVFH, please contact David Scher at david@ldmicro.com or visit https://ld500.ldmicro.com/ to register for the event.

About Innovative Food Holdings, Inc.

Innovative Food Holdings, Inc. is an interconnected data driven platform of small, specialty food companies serving business and consumer customers. The platform offers efficient, cost effective, and transparent sourcing of over 7,000 specialty food products including proprietary branded products. Sales channels on the platform include specialty foodservice channels and data driven DTC e-commerce channels including leading specialty food direct-to-consumer e-commerce websites www.igourmet.com and www.mouth.com as well as a strong specialty food omnichannel offering via www.amazon.com, www.ebay.com and www.walmart.com.

About LD Micro

Back in 2006, LD Micro began with the sole purpose of being an independent resource to the microcap world. What started as a newsletter highlighting unique companies, has transformed into the pre-eminent event platform in the space. The upcoming "500" in September is the Company's most ambitious project yet, and the first event that is accessible to everyone.

Forward-Looking Statements

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the "Company") that are based on the current beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "should," "could," "will," "anticipate," "believe," "intend," "plan," "might," "potentially", "targeting", or "expect." Additional factors that could also cause actual results to differ materially relate to the global COVID-19 crisis. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein.

Company Contact:
Ronit Wallerstein
Innovative Foods Holdings, Inc.
(718) 645-1755
rwallerstein@IVFH.com

Investor and Media Contact:
Andrew M. Berger
Managing Director
SM Berger & Company, Inc
(216) 464-6400
andrew@smberger.com

SOURCE: Innovative Food Holdings, Inc. 

ReleaseID: 603383

LOS ANGELES, CA / ACCESSWIRE / August 26, 2020 / electroCore Inc, (NASDAQ:ECOR), a commercial-stage bioelectronic medicine company, today announced that it will be presenting at the LD 500 investor conference on Thursday, September 3rd at 6:20 AM PST / 9:20 AM EST. Dan Goldberger, Chief Executive Officer of electroCore, will be presenting to a live audience.

Register here: https://ld-micro-conference.events.issuerdirect.com/

"We have been waiting for this moment all year long. Due to COVID, it has been nearly impossible for physical conferences to even take place. I want to show the world that you can still learn, have a great time, and see some of the most unique companies in the capital markets today. All without having to step foot outside. For the first time, LD Micro is accessible to everyone, and we are honored to welcome you to one of the most trusted platforms in the space." stated Chris Lahiji, Founder of LD.

The LD 500 will take place on September 1st through the 4th.

View electroCore's profile here: http://www.ldmicro.com/profile/ECOR

Profiles powered by LD Micro – News Compliments of Accesswire

About electroCore, Inc.

electroCore, Inc. is a commercial-stage bioelectronic medicine company dedicated to improving patient outcomes through its platform non-invasive vagus nerve stimulation therapy initially focused on the treatment of multiple conditions in neurology. The company's current indications are the preventative treatment of cluster headache and migraine and acute treatment of migraine and episodic cluster headache.

For more information, visit www.electrocore.com.

About LD Micro

Back in 2006, LD Micro began with the sole purpose of being an independent resource to the microcap world.

What started as a newsletter highlighting unique companies, has transformed into the pre-eminent event platform in the space.

The upcoming "500" in September is the Company's most ambitious project yet, and the first event that is accessible to everyone.

For those interested in attending, please contact David Scher at david@ldmicro.com or visit www.ldmicro.com for more information.

Contact:

Name: Hans C. Vitzthum
Company: LifeSci Advisors, LLC.
Phone: 617-430-7578
Email: hans@lifesciadvisors.com

SOURCE: electroCore, Inc. via LD Micro

ReleaseID: 603389

TORONTO, ON / ACCESSWIRE / August 26, 2020 / Route1 Inc. (OTCQB:ROIUF) and (TSXV:ROI) (the "Company" or "Route1"), an advanced North American provider of data-centric business empowerment solutions, today reported its financial results for the three- and six-month periods ended June 30, 2020.

Statement of operations

In 000s of CAD dollars

 
 
Q22020
 
 
 
Q12020
 
 
 
Q42019
 
 
 
Q32019
 
 
 
Q22019
 
 
 
Q12019
 

Revenue

Subscription and services

 
 
2,489
 
 
 
1,958
 
 
 
2,511
 
 
 
2,136
 
 
 
1,610
 
 
 
1,576
 

Devices and appliances

 
 
4,477
 
 
 
4,401
 
 
 
5,891
 
 
 
6,576
 
 
 
1,819
 
 
 
1,883
 

Other

 
 
3
 
 
 
4
 
 
 
1
 
 
 
2
 
 
 
1
 
 
 
3
 

Total revenue

 
 
6,969
 
 
 
6,363
 
 
 
8,403
 
 
 
8,714
 
 
 
3,430
 
 
 
3,462
 

Cost of revenue

 
 
4,188
 
 
 
3,997
 
 
 
5,653
 
 
 
5,953
 
 
 
1,672
 
 
 
1,700
 

Gross profit

 
 
2,781
 
 
 
2,366
 
 
 
2,750
 
 
 
2,761
 
 
 
1,758
 
 
 
1,762
 

Operating expenses

 
 
2,570
 
 
 
2,334
 
 
 
2,360
 
 
 
2,336
 
 
 
1,824
 
 
 
1,694
 

Operating profit (loss) 1

 
 
211
 
 
 
32
 
 
 
390
 
 
 
425
 
 
 
(66
)
 
 
68
 

Total other expenses 2, 3

 
 
271
 
 
 
215
 
 
 
(120
)
 
 
424
 
 
 
487
 
 
 
580
 

Net income (loss)

 
 
(60
)
 
 
(183
)
 
 
510
 
 
 
1
 
 
 
(553
)
 
 
(512
)

1 Before stock-based compensation

2 Includes stock-based compensation, AirWatch litigation, gain on acquisition and foreign exchange

3 The reimbursements received from Bench Walk pursuant to its investment have been accounted for as a long-term non-monetary liability within the consolidated financial statements, not as a reduction to patent litigation expense. All such amounts are non-recourse to the Company. In connection with the terms of the agreement, the Company does not have a present obligation to pay any amounts until such time as the litigation has been settled or an event of default has occurred. In the event of an award or settlement of the litigation, the Company will be obligated to pay Bench Walk the greater of 10% of such award or settlement and $2,000,000 or $3,000,000 if the litigation proceeds to trial.

Subscription and services revenue

in 000s of CAD dollars

 
 
Q22020
 
 
 
Q12020
 
 
 
Q42019
 
 
 
Q32019
 
 
 
Q22019
 
 
 
Q12019
 

Application software

 
 
1,665
 
 
 
1,217
 
 
 
1,202
 
 
 
1,182
 
 
 
1,196
 
 
 
1,186
 

Technology as a service (TaaS)

 
 
315
 
 
 
321
 
 
 
353
 
 
 
322
 
 
 
311
 
 
 
307
 

Other services

 
 
509
 
 
 
420
 
 
 
956
 
 
 
632
 
 
 
103
 
 
 
83
 

Total

 
 
2,489
 
 
 
1,958
 
 
 
2,511
 
 
 
2,136
 
 
 
1,610
 
 
 
1,576
 

Adjusted EBITDA

in 000s of CAD dollars

 
 
Q12020
 
 
 
Q12020
 
 
 
Q42019
 
 
 
Q32019
 
 
 
Q22019
 
 
 
Q12019
 

Gross Profit

 
 
2,781
 
 
 
2,366
 
 
 
2,750
 
 
 
2,761
 
 
 
1,758
 
 
 
1,762
 

Adjusted EBITDA 4

 
 
556
 
 
 
358
 
 
 
676
 
 
 
743
 
 
 
200
 
 
 
322
 

Amortization

 
 
346
 
 
 
326
 
 
 
286
 
 
 
318
 
 
 
266
 
 
 
254
 

Operating profit (loss)

 
 
211
 
 
 
32
 
 
 
390
 
 
 
425
 
 
 
(66
)
 
 
68
 

4 Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, stock-based compensation, patent litigation, restructuring and other costs. Adjusted EBITDA does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA allows Route1 to compare its operating performance over time on a consistent basis.

Balance sheet extracts

In 000s of CAD dollars

Jun 30

2020

Mar 31

2020

Dec 31

2019

Sep 30

2019

Jun 30

2019

Mar 31

2019

Cash

 
 
107
 
 
 
116
 
 
 
126
 
 
 
320
 
 
 
702
 
 
 
367
 

Total current assets

 
 
5,448
 
 
 
4,391
 
 
 
6,206
 
 
 
6,106
 
 
 
6,219
 
 
 
5,106
 

Total current liabilities

 
 
8,901
 
 
 
7,532
 
 
 
9,035
 
 
 
8,749
 
 
 
8,625
 
 
 
6,033
 

Net working capital

 
 
(3,453
)
 
 
(3,141
)
 
 
(2,829
)
 
 
(2,643
)
 
 
(2,406
)
 
 
(927
)

Total assets

 
 
12,283
 
 
 
11,501
 
 
 
12,630
 
 
 
11,780
 
 
 
12,268
 
 
 
8,803
 

Bank debt and seller notes

 
 
1,193
 
 
 
2,461
 
 
 
2,415
 
 
 
2,294
 
 
 
1,862
 
 
 
–
 

Total shareholders' equity 3

 
 
778
 
 
 
950
 
 
 
980
 
 
 
473
 
 
 
854
 
 
 
860
 

Route1 generated net cash flow from operating activities of approximately $1.77 million during Q1 2020 compared with cash used of $0.62 million in Q1 2019. Non-cash working capital generated was $0.20 million in Q1 2020 compared to $0.39 million in cash used during the same period a year earlier. Net cash generated by the day-to-day operations for the three months ended March 31, 2020 was $0.27 million compared to $0.22 million used in Q1 2019.

Route1 generated by operating activities for the three months ended June 30, 2020 was $1.77 million compared to cash generated of $0.86 million in the same period in 2019. Non-cash working capital generated was $1.35 million for the three months ended June 30, 2020 compared to $1.07 generated in the same period a year earlier. Net cash generated by the day-to-day operations for the three months ended June 30, 2020 was $0.43 million compared to $0.21 million used in the same period in 2019.

DoD Contract Award
Route1 announced on August 24, 2020 that it had been awarded a purchase order to provide a one-year license with three one-year renewal options to an agency of the U.S. Department of Defense for 4,000 MobiKEY subscriptions.

The new client for Route1 has the ability to increase their user base in increments of 1,000 subscriptions. The annual software license for the 4,000 users is valued at approximately US $1.5 million.

As a result of this order, using today's subscriber base and assuming flat subscription growth, on a pro forma basis Route1 expects as of today's date to generate for the balance of 2020 monthly MobiKEY subscription-based revenue of approximately CAD $740,000. This is in contrast to Route1's MobiKEY application software monthly subscription revenue of approximately CAD $405,000 in February 2020.

Stock Option Grant
On August 25, 2020, the Company granted independent board directors and employees stock options in the aggregate amount of 400,000 with an exercise price equal to the closing share price on Thursday, August 27, 2020. The stock options will expire on August 26, 2025 and will vest thirty percent on the first anniversary, thirty percent on the second anniversary and the remainder on the third anniversary. Under the Company's stock option plan, 10% of the issued capital is reserved for issuance for a total of 3,369,861 options. As of today's date, including the above grant, a total of 3,232,500 options are currently outstanding under the stock option plan.

Business Update Conference Call and Webcast
The Company will hold a conference call and web cast to provide a business update on Wednesday, August 26, 2020 at 9:00 am eastern.

Participants should dial Toll-Free: 1-877-407-0782 or Toll/International: 1-201-689-8567 at least 10 minutes prior to the conference. For those unable to attend the call, a replay will be available on August 26, 2020 after 4 pm eastern at Toll-Free 1-877-481-4010 or Toll/International 1-919-882-2331, pass code #36892 until 10 am on September 9, 2020.

The webcast will be presented live at https://www.webcaster4.com/Webcast/Page/2167/36892.

About Route1 Inc.
Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.

For More Information, Contact:
Tony Busseri
Chief Executive Officer
+1 480 578-0287
tony.busseri@route1.com

This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

© 2020 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1's intellectual property.

This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future oriented financial information. These statements are based on certain factors and assumptions, including, price and liquidity of the common shares, expected financial performance, expected subscribers and subscription-based revenue, business prospects, technological developments, and development activities and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future oriented financial information to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future oriented financial information as an assurance of future results.

SOURCE: Route1 Inc.

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