VANCOUVER, July 17, 2019 /CNW/ - Datable Technology Corp. (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "DTC"), a technology company whose core product, PLATFORM3, is an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS), provides a corporate update.
In 2019 DTC continued to grow its SaaS business, with licence agreements to provide PLATFORM³ to leading Consumer Packaged Goods (CPG) brands, representing close to $1.6 million in contracted revenues, with over 80% to be recognized in 2019. In addition, the Company expects to finalize SaaS license agreements with new and existing CPG brands that will increase contracted revenues to approximately $2 million. In the first quarter ended March 31, 2019, the Company reported gross margin of 72%, the revenues described above are expected to generate similar gross margin. For the full year of 2018, DTC reported revenues of approximately $1,421,070. The growth and renewals in 2019, are further evidence of the value proposition, scalability and security of PLATFORM³.
Under the SaaS business model, leading CPG brands licence PLATFORM³ to connect directly with consumers and reward them for purchasing products in-store and online, as well as for actions that promote the brand, such as viewing and sharing content, referring friends via social media and completing surveys. PLATFORM³ helps CPF brands increases purchasing via loyalty, while building a data base of valuable consumer data to be used for targeted offers and product development.
The Company also continues work to develop its own Consumer Loyalty and Rewards Portals - the flexxi Rewards Network. These Portals provide registered consumers with valuable rewards for engaging with brands and completing brand activities. The flexxi Rewards Network will enable Datable to begin collecting consumer data and expand its' business model to include data and transactional revenue. Building communities of consumers and owning the relationships and subsequent data is expected to be a big driver of revenue in the coming years. Portals on the flexxi Rewards Network are built on top of Datable's proprietary PLATFORM³ technology which dramatically reduces costs and time to market for these properties."
The Company's existing SaaS CPG customers have expressed interest in purchasing access to Datable's flexxi Rewards Network, providing DTC with an initial customer base its data and transactional revenue model. The Company is expanding to new sectors with signed letters of Intent ("LOIs") with launch flexxi Rewards Network portals for eSports and shareholder loyalty. (See press released dated June 26, 2019 and June 19, 2019 respectively). In addition, DTC has signed a LOI to integrate PLATFORM³ with a payments platform, that includes profit sharing for transactions from consumers who become card holders via the flexxi Rewards Network (See press release dated May 13, 2019). The Company plans to launch the flexxi Rewards Network in the fourth quarter of 2019, and will provide further updates on progress of its LOIs.
"We are encouraged by the growth of our SaaS business in 2019, as we sign license agreements to existing and new leading CPG brands. We believe that the launch of the flexxi Rewards Network will enable us to accelerate revenue growth by reducing sales cycles and providing access to a larger portion of annual marketing and advertising budgets, said Rob Craig, CEO of DTC. "The addition of the flexxi Rewards Network starts the transition of Datable into a consumer data company, complementary to its high margin SaaS business."
The Company also announces that it has entered into debt settlement agreements (the "Settlement Agreements") with certain arms-length creditors (the "Creditors") to settle an aggregate $75,750 in debt (the "Debt") for consulting and advisory services provided by the Creditors to the Company (the "Services").
In settlement and full satisfaction of the Debt in connection with the Services, the Company has agreed to issue to the Creditors an aggregate 946,875 common shares in the capital of the Company (the "Debt Shares") at a deemed issue price of C$0.08 per Debt Share (the "Debt Settlement"). The issuance of the Debt Shares is subject to receipt of TSX Venture Exchange approval. All Debt Shares issued in connection with the Debt Settlement are subject to a statutory hold period of four months plus a day from the date of issuance of the Debt Shares in accordance with applicable securities legislation.
In addition, the Company has granted 2,925,000 restricted share units and 1,250,000 stock options, with and exercise price of $0.08 with a term of five years to employees, consultants and directors of the Company pursuant, subject to receipt of TSX Venture Exchange approval.
About Datable Technology Corp.
DTC has developed a proprietary, mobile-based consumer marketing platform – PLATFORM³ – that is sold to global Consumer Packaged Goods (CPG) companies and consumer brands. PLATFORM³ is delivered as a subscription service (Software as a Service model) and used by CPG companies to engage consumers, reward purchases and collect valuable consumer data. PLATFORM³ incorporates Artificial Intelligence and Machine Learning to monetize the consumer data, including demographics and purchasing behaviour, by sending consumers targeted offers by email and text messages. For more information, visit datablecorp.com.
For additional information about the company please visit www.sedar.com. The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. Neither 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. 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 expectation. Important factors – including the availability of funds and the results of financing efforts, – that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). 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.
SOURCE Datable Technology Corp.
For further information: Datable Technology Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]