VSBLTY, GRUPO MODELO & RETAILIGENT FORMALIZE AGREEMENT TO JOINTLY CREATE INTERNATIONAL DIGITAL IN-STORE MEDIA NETWORK
Network to Provide Real Time Customer Analytics, Security & Sensor Integration in Up to 50,000 Modelorama Stores & Independent Neighborhood Bodegas in Latin America
PHILADELPHIA, PA., March 15, 2021 (GLOBE NEWSWIRE)—VSBLTY Groupe Technologies Corp. (CSE: VSBY) (Frankfurt: 5VS) (OTC: VSBGF) (“VSBLTY”), a leading software provider of security and retail analytics technology, along with Mexico’s Grupo Modelo (“Modelo”) (part of the AB InBev family of companies) and Retailigent Media have formalized an agreement (the “Agreement”) to enter into a joint venture by the end of Q2 to install and manage an international in-store media network of up to 50,000 Modelorama stores and independent neighborhood bodegas in Mexico and across Latin America by the end of 2024, it was announced today. Active deployment is already underway in Mexico, Colombia, Peru, and Ecuador with 5000 locations to be installed by the end of 2021.
In addition to being an international advertising network, it will provide real-time security for store owners, powered by artificial intelligence, as well as integration of store traffic and customer demographics with sales and critical operations-related data to help stores optimize their business.
VSBLTY Co-founder & CEO Jay Hutton said, “The deployments are already underway in Mexico, Colombia, Peru, and Ecuador and we have started contracting media time to consumer-packaged goods brands to advertise to Latin American shoppers right at point-of-sale where buying decisions are made. VSBLTY will be supplying its proprietary software for analytics, security, and visual display,” Hutton said. “The three firms will be equal partners in the joint venture. VSBLTY will earn revenue from the joint venture in two ways. First, and more modestly, from the licensing fees to VSBLTY for the proprietary software that will be leveraged by the joint venture, and second, and most significantly, VSBLTY will share in one-third of the annual operating profits from advertising revenue, modeled to be greater than $200MM USD in total to the joint venture over the first five years,” he concluded.
AB InBev is the world’s largest brewer with a diverse portfolio of more than 500 brands, including iconic global beers Budweiser, Corona, and Stella Artois. Part of AB InBev, Grupo Modelo is the leader in the production, distribution, and sale of beer in Mexico and owns and operates Modelorama, Mexico’s second largest convenience store chain.
Pedro Garavito, Vice President of Technology & Transformation, Middle Americas, said, “By leveraging technology and analytics we can play a pivotal role in the communities we serve by improving the safety and quality of the shopping experience for the millions of store owners with whom we do business every day. Not only can the various solutions around Internet of Things (IoT) offer real time access to point-of-sale systems to allow store owners to dynamically optimize their business, but we can also incorporate security, consumer analytics and display advertising under the same platform. At the same time, we will be enabling local store owners and operators to remain competitive as retail consolidates in most Latin American markets. The innovation and agility provided by VSBLTY and Retailigent Media, when coupled with our reach, will allow us to have a meaningful and positive impact on the retail industry in Central and South America.”
Thiago Porto, VP of Transformation and People, Middle Americas, said, “This exciting plan of action—with a target of a 50,000-store deployment by 2024— will enable traditional neighborhood stores, the most important channel for consumer products in Latin America, to keep pace as the retail industry goes through monumental digital transformation.”
Retailigent Media, with offices in Mexico and five other Latin American countries, is the leading company in Mexico for smart retail solutions, analytics, and smart displays. Retailigent provides advertising and marketing insights to some of the world’s leading brands, including P&G, Coca-Cola, Diageo, and Telefonica. “We have a long-standing working relationship with VSBLTY and we are partnering with RADAR App to support in-store security in each of the stores we plan to develop throughout Latin America. Radar App is the first collaborative security solution in the world that is already being utilized in Mexico City counties. Now we will be working together to help Grupo Modelo create a new revenue stream for their stores, improve security, and become an attractive media channel as well,” according to Rodrigo Velasco, Retailigent Media CEO & Co-founder.
In connection with entering into the Agreement, VSBLTY has agreed to issue to Modelo 15,500,000 common share purchase warrants of VSBLTY (the “Warrants”). Each Warrant will be exercisable to acquire one common share of VSBLTY for a period of five (5) years from the date of issuance at an exercise price of at CAD $0.84 per share, subject to the following vesting conditions:
(a) 15% of the Warrants will vest immediately as a result of execution of the Agreement;
(b) 15% of the Warrants will vest upon execution of the definitive agreements for the joint venture;
(c) 20% of the Warrants will vest upon the joint venture having been installed and operating in at least 1,500 locations;
(d) 20% of the Warrants will vest upon the joint venture having been installed and operating in at least 5,000 locations;
(e) 15% of the Warrants will vest upon the joint venture having been installed and operating in at least 20,000 locations; and
(f) 15% of the Warrants will vest upon the joint venture having been installed and operating in at least 30,000 locations.
In addition, VSBLTY will issue to Modelo 2,500,000 additional Warrants upon the joint venture having been installed and operating in at least 1,500 locations and a further 2,500,000 additional Warrants upon the joint venture having been installed and operating in at least 5,000 locations (collectively, the “Additional Warrants”). The Additional Warrants will have an exercise price equal to the closing price of VSBLTY’s common shares on the last trading prior to reaching the 1,500 locations milestone and will be exercisable for a period of five (5) years from the date of issuance.
VSBLTY technology provides enhanced customer engagement and audience measurement including store traffic and customer demographics. Its industry-leading VisionCaptor™ and DataCaptor™ software combine motion graphics and interactive brand messaging with cutting-edge computer vision measurement and insights. VSBLTY’s AI-driven software, Vector™ provides advanced facial recognition that is crucial to enhancing security in a variety of environments.
CHF Capital Markets
Cathy Hume, CEO, +1-416-868-1079, x231
CONTACT: Linda Rosanio, 609-472-0877
About VSBLTY (www.vsblty.net)
Headquartered in Philadelphia, VSBLTY (CSE: VSBY) (Frankfurt: 5VS) (OTC: VSBGF) (“VSBLTY”) is the world leader in Proactive Digital Display™, which transforms retail and public spaces as well as place-based media networks with SaaS-based audience measurement and security software that uses artificial intelligence and machine learning.
About Grupo Modelo (www.gmodelo.mx)
Founded in 1925, Grupo Modelo is the leader in the production, distribution, and sale of beer in Mexico and since 2013 part of the world’s largest brewing group, Anheuser-Busch InBev. The firm has 17 national brands, including Corona, and imports seven additional brands. Grupo Modelo operates 10 breweries in Mexico and has more than 32,000 employees.
CONTACT: Fernando Morales, +52 55 5174 9000 x55067
About Retailigent Media (www.retailigentmedia.com)
VSBLTY partners with Retailigent Media that has been a pioneer throughout Latin
America in making smart deployments at retail with digital displays and analytics. Retailigent Media also provides OOH traffic measurements and predictive advertising triggered by gender and age. The firm is helping retailers and cities improve their security with VSBLTY’s Vector Face Recognition and Alerts.
CONTACT: Rodrigo Velasco, +52 1 55 9196 7427
Certain statements in this news release constitute forward-looking information within the meaning of applicable securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects,” “believes,” “anticipates,” “budget, “scheduled,” “estimates,” “forecasts,” “intends,” “plans,” and variations of such words and phrases, or by statements that certain actions, events or results “may,” “will,” “could,” “would,” or “might,” “be taken,” “occur,” or “be achieved.” Those forward- looking statements include a number of statements related to the outlook for future operations, including statements about VSBLTY’s proposed joint venture with Modelo and Retailigent Media, business plans, booking new projects, revenue growth, and new opportunities presented by VSBLTY.
Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, expected growth, results of operations, performance, industry trends and growth opportunities. While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: pricing for the Company’s products and services; the ability to enter into contracts and ability of third parties to honor their contractual obligations; the decisions of third parties over which the Company has no control; changes to government regulations; force majeure events; limits on the ability of the Company to implement and fulfill its business strategies; general economic conditions; adverse industry events; operating costs exceeding the Company’s expectations; loss of markets or failure to enter new markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the ability of the Company to implement its business strategies including expansion plans; and competition. The foregoing factors are not intended to be exhaustive, and readers should refer to the detailed risk factors described in VSBLTY’s Annual Information Form which is available under the Company’s profile at www.sedar.com. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This news release includes financial outlook, specifically projected net income from the Company’s proposed joint venture with Modelo and Retailigent Media, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. In addition, the Company’s net income projections are based on other factors, including the following key assumptions: (i) the joint venture’s ability to successfully develop and deploy its products; (ii) the joint venture’s pricing targets remaining in place; (iii) the Company’s ability to maintain performance and quality as the joint venture advances and product volume increases, (iv) 70% of advertising inventory sold, and (v) extension of the joint venture to 5,000 locations by end of 2021, 5,000 locations by end of 2022, 35,000 locations by end of 2023 and 55,000 locations by end of 2024. Accordingly, the financial projections are only estimates and are necessarily speculative in nature. It is expected that some – and perhaps all – of the assumptions in the financial projections will not be realized and that actual results will vary from the projections. Such variations may be material and may increase over time. Such financial projections contained in this news release were made by management as of the date of this news release and are provided for the purpose of providing readers with an understanding of the Company’s business plan and significance of the Company’s proposed joint venture. Readers are cautioned that the financial outlook contained in this document should not be used for purposes other than for which it is disclosed herein.