VANCOUVER, BC, July 13, 2020 /CNW/ - Loop Insights Inc. (TSXV:MTRX.V - News) (the "Company" or "Loop"), a provider of transformative artificial intelligence ("AI") Internet of Things ("IoT") solutions has accelerated conversations and projects with two of Canada's largest telecommunications companies as well as two of the largest network providers in the United States (collectively, the "Telco('s))".
In a recent global telecommunications study (source: Ernst & Young), 74% of Telco's cite that their top challenge is rapid increase in disruptive competition. With concern that traditional services will become obsolete, many Telco's are making strategic moves to expand their IoT product offerings. Loop's Fobi device is incredibly appealing to them as it is the disruptive turnkey solution that Telco's have been looking for to get in front of the competition. Fobi has the potential to enable Telco's customers to unlock their retail data to make smarter, faster, data-driven decisions in addition to tracking recency and frequency data in-store and online. It also can enable users to easily create and distribute cross-channel personalized marketing with a view to driving traffic and increasing revenue. Loop's goal is to deliver this new innovative product to the Telco's such that it can be re-sold to existing customers through their re-seller channels, thereby fast-tracking Loop's distribution plans.
CEO Rob Anson: "We have been focused on laying the foundation for a channel re-seller partnership model because it is proven to be successful in accelerating growth while allowing the company to remain lean, agile and profitable. Loop's ability to provide a fully commercialized IoT product to the largest Telco's in North America is expected to increase shareholder value not only through accelerating the path to significant revenue generation but also by making Loop a significant player in this sector which should increase Loop's attractiveness for possible acquisition."
Fobi has been engineered to produce LTE connectivity through a SIM card. This capability provides an independent secure network for the client and provides extremely valuable revenue generating ability to Telco partners. With Loop's products now ready for mass implementation, fast and widespread distribution has been its focus. Loop is of the view that partnering with Telco's as re-sellers, which have tens of thousands of existing customers each, is the best way to obtain Loop's goal of achieving a high rate of implementation in a short amount of time. The Telco's are also in search of a technology that can not only keep them current, but also that is highly scalable for speedy and wide use.
Loop expects to generate revenue through the proposed channel re-seller pricing model consisting of a one-time on-boarding fee for each Telco customer, a monthly software as a service fee for each point of sale terminal, programmed advertising for each customer based on distribution and redemption of offers and Loop professional services charged out at an hourly rate. With the Telco's each having tens of thousands of existing customers to which Loop expects to be given immediate access, consisting of B2B customers, corporate retail stores and dealer networks and with each customer location having an average of three to four point of sale terminals, it is expected that each one of the Telcos' customers could generate recurring annual revenues for Loop in the range of $7,000 to $10,000.
COO Gavin Lee: "The proposed Telco channel re-seller model could provide a strong business and revenue model for the company producing multiple streams of recurring revenue with high margins (ranging from 40% - 70%) making the potential of these opportunities extremely lucrative. We have built a highly scalable product and the channel re-seller model is expected to be one which is rapidly deployable, a significant revenue generator and one which is easily repeatable across an unlimited number of industry sectors."
About Loop Insights: Loop is a Vancouver-based technology company that provides transformative artificial intelligence services and IoT solutions to the brick and mortar retail industry to support its longevity in the face of a growing online consumer culture. At the core of its solution is the Fobi IoT technology, which has the unique ability to connect company-wide data with in-store transactional data in real time. This disruptive capability creates revenue-generating insights, which can be actioned through Loop's automated personalized marketing platform to increase foot traffic, wallet share, loyalty and spend.
LOOP Website: www.loopinsights.ai
This news release contains certain statements which constitute forward-looking statements or information. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Loop's control, including the impact of general economic conditions, industry conditions, and competition from other industry participants, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Loop believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, Loop does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Trading in the securities of Loop should be considered highly speculative. There can be no assurance that Loop will be able to achieve all or any of its proposed objectives.
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.
SOURCE LOOP Insights Inc.
View original content: http://www.newswire.ca/en/releases/archive/July2020/13/c8851.html