INEO Tech (TSX-V: INEO) is a provider of location-based digital advertising, analytics and loss prevention solutions for retailers.
INEO’s patented technology integrates and monetizes digital screens with theft detection sensor gates at the entrance of retail stores.
The Company’s CEO, Kyle Hall, came to Montreal on November 30, 2021, to present INEO’s highlights and achievements to the Espace MicroCaps community.
Here is what came out of a short interview we conducted:
Can you tell us your businesses’ highlights of the last 6-9 months? What are the top 2-3 achievements or milestones?
In November 2021, INEO announced a global partnership agreement with Prosegur, a multi-billion-dollar security solutions company based in Europe. Under the agreement, Prosegur will sell, finance, manufacture, distribute and install INEO’s Welcoming System solutions in the front store entrances of large retail chains. Finalizing the definitive agreement with Prosegur was a key milestone for INEO which will result in an increased pace of retail deployments and positions the Company for success.
Later that month, INEO also announced it has filed an additional patent related to its Welcoming System technology. The patent application includes more than 30 claims and increases the scope of the company’s patent portfolio.
Lastly, INEO showed strong results for its fiscal first quarter ended September 30, 2021. Revenues increased 61% compared to first quarter last year, while Gross Profit was up 93%. INEO continues to have a strong balance sheet with over $4 million in cash at the end of September.
What is going on now that should have the most significant impact on your business going forward?
INEO presently has several test deployments underway with Prosegur involving large retailers in North America and Europe to utilize the INEO Welcoming System in their stores.
INEO is also currently in the process of bringing Prosegur’s manufacturing facilities online. Initial manufacturing of systems for Prosegur’s customers in the Americas is expected to be fulfilled in INEO’s Surrey, BC facility while Prosegur’s manufacturing facility in the Czech Republic will fulfil orders for their European customers.
INEO also has several additional customer opportunities that it is directly pursuing including a large retail chain with locations across North America and several smaller regional retail chains in Canada.
Tell us what investors should be looking out for from you and your team in the next few months.
Investors should be looking at key upcoming catalysts that include:
- Customer announcements through the Prosegur partnership
- Continued expansion of INEO’s independent liquor store network in Western Canada.
- Announcement of pilot systems turning to customer deployments through INEO’s direct selling efforts.
- Increasing advertising fill rates on our Welcoming System units.
Tell us something that people might not know about business or your team.
Founder and President Greg Watkin is a musician and has a band called Douglas Crossing. Greg is a drummer and vocalist.
CEO Kyle Hall is a former professional football player having played in the CFL for the Winnipeg Blue Bombers and Ottawa Rough Riders.
Mathieu Martin, the sole owner of Espace MicroCaps, is employed as a portfolio manager at Rivemont Investments (“Rivemont”) for the Rivemont MicroCap Fund (the “Fund”). Mathieu Martin is responsible for the investment decisions made by Rivemont as the portfolio manager of the Fund.
The Fund holds securities of INEO Tech (INEO.V) and may trade the stock at any time without prior notice.
This written interview was done following a presentation event that was held on November 3oth, 2021. INEO Tech has paid a fee to cover the cost of drinks and appetizers, room rental and employees helping to organize the event. Espace MicroCaps and Mathieu Martin have not made any direct or indirect profits from this event.
This interview is neither an offer to sell nor a solicitation of an offer to purchase securities and should not be considered legal, tax, financial or investment advice.
Espace MicroCaps is not responsible for direct or indirect trading losses caused by the information presented by the company. Everyone is advised to make their own analyzes and inquiries and to consult their own professional advisers with respect to legal, tax, accounting and other matters relating to the acquisition, holding or disposition of an investment.