Fiscal Second Quarter 2021 Revenue Increases 90% and Includes Initial Advertising Contracts

Fiscal Second Quarter 2021 Revenue Increases 90% and Includes Initial Advertising Contracts

  • LOI with multi-national security company, Prosegur, for the global distribution of INEO’s Welcoming Pedestals positions the Company for considerable expansion into large retailers worldwide.
  • Recently announced upsized equity public offering of up to $7M, including the over-allotment option, strengthens INEO’s balance sheet for future growth.

Surrey, BC – March 1, 2020 – INEO Tech Corp. (TSX-V: INEO) (the “Company” or “INEO”), an innovative provider of location-based digital advertising, analytics and loss prevention solutions for retailers, today announced it has filed its Interim Consolidated Quarterly Financial Statements and Management’s Discussion and Analysis on for the Company’s fiscal second quarter ended December 31, 2020.

“Second quarter was another strong quarter for INEO as we experienced substantial year-over-year revenue growth, expanded the footprint of the INEO Welcoming Network and signed several advertisers through our partnerships with Consumer Media Solutions and Hivestack,” said Greg Watkin, Chairman and Founder of INEO. “We are even more excited with our recent developments. The LOI for our global distribution partnership with Prosegur and an equity public offering of up to $7M, including the over-allotment option, position us for expansion into some of the largest retailers across the globe.”

Fiscal Second Quarter 2021 Financial Highlights:

INEO generated $187,239 of revenue for the three months ended December 31, 2020, representing an increase of 90% as compared revenue of $98,536 for the three months ended December 31, 2019. The increase in revenue is primarily attributable to an increase in the Company’s online sales of loss prevention products and the inclusion of initial revenue from advertising on the INEO Welcoming Network.

INEO generated gross profit for the three months ended December 30, 2020 of $79,287, as compared to gross profit of $67,639 for the year ended December 30, 2019, representing an increase of 17%. The Company attributes this growth to an increase in revenue and the addition of high margin advertising revenue.

Net loss for the three months ended December 31, 2020 was $525,252 or $0.01 per share compared to net loss of $168,825 or $0.01 per share for the three months ended December 31, 2019. The Company had a greater loss due to higher operating expenses as a result of increased salary costs in the sales, development and deployment of its products and systems.

INEO had $507,787 of cash and cash equivalents at December 31, 2020, compared to $1,252,638 of cash and cash equivalents at June 30, 2020.

As of December 31, 2020, the Company had 40,680,740 shares issued and outstanding.

Fiscal Second Quarter 2021 Business Highlights:

On October 27, 2020 INEO announced an agreement with Hivestack to connect INEO’s network of premium retail advertising screens to Hivestack’s digital out-of-home programmatic advertising platform to deliver targeted location-based advertising. This agreement gives brands and advertisers who utilize the Hivestack platform access to ad space on INEO’s Welcoming Network digital screens which are uniquely located at the entrances of retail stores.

On November 5, 2020, INEO announced it had expanded its Welcoming Network to the Okanagan Valley region with the successful installation of its systems in five new retail locations and increasing its presence to all the major markets in BC and Alberta.

On December 17, 2020, INEO announced an advertising contract with one of the world’s largest brewing companies, who began advertising across select retail locations on INEO’s Welcoming Network starting in January 2021.

Events Subsequent to December 31, 2020:

On January 7, 2021, INEO announced it entered into a Letter of Intent (LOI) with Prosegur EAS USA Inc., a wholly owned subsidiary of Prosegur Compania de Seguridad (collectively “Prosegur”), to distribute and install INEO’s Welcoming Pedestals in Prosegur’s retail customer locations in North America, Latin America and Europe. Under the terms of the LOI, Prosegur will be responsible for the funding, manufacturing, distribution, in-store setup and in-store maintenance of INEO’s Welcoming Pedestals, while INEO will receive a monthly SaaS recurring revenue fee for operating and managing the network of digital advertising screens and providing valuable analytics data.

On February 1, 2021, INEO announced its initial Welcoming Pedestal units have been shipped to Prosegur with the successfully completed integration of INEO’s technology with Prosegur’s tag detection technology. Upon completion of final validation testing, Prosegur will be begin installing INEO’s pilot Welcoming Pedestals at select locations within some of the largest retailers in Canada and the United States.

On February 16, INEO announced a best efforts marketed public offering of up to $4.5M at a price of $0.36 per unit (each a “Unit”) consisting of one common share (a “Share”) of the Company and one-half of one Share purchase warrant (a “Warrant”). Each Warrant will be exercisable to a share of the Company for a period of 24 months following the closing of the offering. The public offering is led by Beacon Securities Limited and includes Haywood Securities Inc. and PI Financial Corp.

On February 18, INEO announced it has amended the terms of its previously announced marketed public offering of units of the Company. Under the amended terms, the Company will offer for sale a maximum of up to 16,917,000 Units for aggregate gross proceeds of up to $6,090,120. In the event an Over-Allotment Option is exercised in full under the maximum Offering, the total number of Units issued under the Offering shall be 19,454,550 for aggregate gross proceeds of $7,003,638.

Kyle Hall, CEO of INEO commented, “It’s been a busy start to the new year. We are focused on the business fundamentals to make sure we are ready to scale and rapidly grow. The success of INEO’s Welcoming Network in independent liquor stores has been a validation of our technology and business opportunity. INEO is now entering the next stage of the Company’s planned expansion into large national and international retailers. We are building a great company which we believe will meet the needs of retailers, brands and advertisers around the world.”


The Company currently has seventy-five locations operating on the INEO Welcoming Network and is well positioned to significantly expand its footprint into some of the world’s largest retailers as a result of its distribution partnership with Prosegur. INEO and Prosegur are expected to enter into a Definitive Agreement in fiscal third quarter 2020. Both parties are currently actively working on securing and installing INEO’s Welcoming Pedestals in several pilot locations within two large North American retailers.

In addition, INEO has a healthy pipeline of independent liquor store retail locations ready for installations in the coming months and the Company is also witnessing increasing advertising fill rates on the INEO Welcoming Network. The partnerships with Consumer Media Solutions, as the Company’s advertising sales representatives, and with Hivestack’s programmatic advertising platform are allowing INEO to scale without having to add payroll headcount in this area.

INEO plans on continuing to innovate in the areas of integrated digital screen and loss prevention technology, improving data analytics with machine learning algorithms and optimizing its cloud based digital advertising network.

About INEO Tech Corp.

INEO Tech Corp., through its wholly owned subsidiary, INEO Solutions Inc., provides retailers, advertisers and brands with The INEO Welcoming Network, a patented in-store and online location-based advertising network that enhances the customer experience, monetizes the entrances of retail stores and protects against retail theft. The INEO Welcoming Network is a revolutionary cloud-based digital advertising and data analytics system, which sends customized advertising to digital screens integrated with theft detection sensor gates at the entrance of retail stores. INEO is headquartered in Surrey, Canada and publicly traded on the TSX-Venture Exchange under the symbol “INEO”.

For more information please visit:

Forward-Looking Statements

Investors are cautioned that, except as disclosed in the disclosure document, any information released or received with respect to the Company may not be accurate or complete and should not be relied upon. Trading in securities of the Company should be considered highly speculative.

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 expectations. Important factors – including the availability of funds, acceptance of the Company’s products, competition, and general market conditions – that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed on SEDAR, including the Annual Information Form for the year ended June 30, 2020 filed on SEDAR December 3, 2020. 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.

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

For further information:

Pardeep Sangha

Investor Relations, INEO Tech Corp.

[email protected]

(604) 572-6392

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