SpotLite360 IOT Solutions, Inc. Announces Termination of Agreement with E3 Service Group
DENVER and VANCOUVER, British Columbia, Feb. 22, 2023 (GLOBE NEWSWIRE) -- SPOTLITE360 IOT SOLUTIONS, INC, (“SpotLite360” or the “Company”) (CSE: LITE) (OTC: SPLTF) (Frankfurt:87A) an emerging supply chain technology solutions company, announces that it has terminated its agreement and relationship with E3 Service Group, LLC (“E3”), a facilities design and environmental control company predominantly focused in the Cannabis industry. This represents the Company’s strategic decision to refocus its energy, resources, and capital on the delivery of repeatable, high margin, SaaS-based supply chain tracing, tracking and sustainability solutions to customers in healthcare, pharmaceutical and agriculture.
SpotLite360 entered into an agreement with the shareholders of E3 in March of 2022 to acquire a 51% equity stake in E3. Under that agreement, the Company issued 20 million common shares priced at $0.20 per share (the "Consideration Shares") and paid $770,000 USD in cash as partial consideration. Given the capital-intensive nature of the existing contracts and the challenges of implementing E3's business into the Company's core business, the Company has terminated the agreement and will not process the remaining payments due to complete the 51% equity purchase of E3. With the termination of the agreement, E3 vendors have agreed to return the Consideration Shares to the Company for cancellation in exchange for the return of its 51% equity interest in E3. Upon the termination of the acquisition agreement and relationship with E3, the Company has no equity interest in E3.
This strategic decision by the Board of SpotLite360 will allow the Company to focus on the delivery of SaaS-based, IoT-enabled supply chain tracing, tracking and sustainability solutions in response to demand by customers within its core industry focus. These solutions are highly repeatable, more partner friendly, less capital intensive, and ultimately represent higher margins and longer-term customer engagements.
Consumers are demanding greater transparency around product origin, chain of custody, product contents, and manufacturing processes. As a result, manufacturers must collect and present accurate data to consumers, retailers, and other stakeholders. In addition, and as we have seen with the COVID pandemic, market disruptions are now all the more common, requiring a new level of supply chain adaptability, resiliency, and speed in order for companies to protect their business from the next disruption. Additional pressure for sustainable sourcing and business practices necessitates greater communication and collaboration across all partners in the supply chain ecosystem. On top this, today’s Environment, Social and Governance (ESG) regulatory and compliance mandates require more in-depth and transparent data than ever before. SpotLite360 is one of very few companies offering a full-cycle supply chain tracing and tracking platform with the ability to scale and cater to a global market and enterprise accounts.
SpotLite360 IOT Solutions, Inc, is a publicly traded company on the CSE, OTC and Frankfurt exchanges. The Company was first listed in June 2021 with its core focus to deliver SaaS-based supply chain tracing, tracking, sustainability, and proof of ESG solutions to the healthcare, pharmaceutical and agriculture industries.
On behalf of the Board of Directors of the Company,
SpotLite360 IOT Solutions, Inc.
Tim Harvie, President and CEO
For more information about SpotLite360, please visit: www.spotlite360.com
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About SpotLite360 IOT Solutions, Inc.
SpotLite360 provides a fully integrated SaaS-based enterprise tracing, tracking & collaboration solution that companies trust to achieve more sustainable and better performing supply chains. SpotLite360’s solution is built on a scalable and fully customizable platform that leverages a broad array of RFID, IoT (Internet of Things) and sensor technologies to provide item level visibility, proof of origin, authenticity, and chain of custody to its customers in pharmaceutical, healthcare, and agriculture. Companies across all industries are needing to invest in more resilient, adaptable, and collaborative supply chains in order to remain competitive. Current demand by consumers for proof of ESG (“Environmental, Social and Governance”), pressure across all industries to become more sustainable , new regulatory and legal requirements and the need for companies to become more efficient are some of the factors contributing to demand for supply chain solutions. SpotLite360 will leverage its proven supply chain tracing and tracking solutions to meet this demand and transform logistics workflows for enterprise clients in its target markets.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, with respect to the Company. The forward-looking information included in this news release is not based on historical facts, but rather on the expectations of the Company’s management regarding the future growth of the Resulting Issuer, its results of operations, performance, business prospects, and opportunities. This news release uses words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions to identify forward-looking information. Such forward-looking information reflects the current beliefs of the Company’s management, based on information currently available to them.
This forward-looking information includes, among other things, statements relating to: the intentions, plans and future actions of the Company; statements relating to the business and future activities of the Company; anticipated developments in operations of the Company; market position, ability to compete, and future financial or operating performance of the Company; the timing and amount of funding required to execute the business plans of the Company; capital expenditures of the Company; the effect on the Company, of any changes to existing or new legislation or policy or government regulation; the length of time required to obtain permits, certifications and approvals; the availability of labor; estimated budgets; currency fluctuations; requirements for additional capital; limitations on insurance coverage; the timing and possible outcome of regulatory and permitting matters; goals; strategies; future growth; the adequacy of financial resources; and our expectations regarding revenues, expenses and anticipated cash needs.
In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions, and expected future developments and other factors it believes are appropriate and are subject to risks and uncertainties. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and there can be no assurance that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties, and assumptions, prospective investors should not place undue reliance on these forward-looking statements. Whether actual results, performance, or achievements will conform to the expectations and predictions of the Company is subject to a number of known and unknown risks, uncertainties, assumptions, and other factors, including those listed in the Company's non-offering prospectus dated May 26, 2021.
If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking statements prove incorrect, actual results might vary materially from those anticipated in the forward-looking statements. Information contained in forward-looking statements in this news release is provided as of the date of this news release, and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws. Accordingly, potential investors should not place undue reliance on forward-looking statements, or the information contained in those statements.
All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.
Statement Regarding Third-Party Investor Relations Firms
Disclosures relating to investor relations firms retained by SpotLite360 IOT Solutions, Inc. can be found under the Company's profile on http://sedar.com.