SURREY, BC, March 11, 2020 /CNW/ - INEO Tech Corp. (TSX-V: INEO) (the "Company" or "INEO"), the developer of The Welcoming System for retailers, is pleased to announce it has signed a Letter of Intent to acquire Newman Loss Prevention ("Newman"). The Company expects to sign a definitive agreement and close the transaction within 30 days.
Newman is the preeminent independent reseller of loss prevention products and services in Alberta and Saskatchewan. Based in Calgary, Newman services over 200 retail locations with average annual revenues over the last three years of $275,000.
INEO's acquisition of Newman, includes acquiring ongoing contracts, customer lists and inventory assets, in exchange for 200,000 common shares in INEO with a future earn-out consideration of another 200,000 INEO common shares upon achievement of certain agreed to milestones. Dan Newman, the principal of Newman, has 25 years of retail sales experience and will be joining INEO as Director of Sales for the Prairie Region.
"This acquisition is in line with our strategy of acquiring profitable loss prevention resellers who are solid operators and have a good list of customers where we can install INEO Welcoming Systems," stated Kyle Hall, CEO of INEO. "This strategy quickly expands our customer base and builds our pipeline of locations for INEO Welcoming Systems to be deployed in the future. Furthermore, the acquired customers will immediately deliver accretive cash flow and with Dan Newman joining our team, we gain valuable relationships and experience to continue to accelerate our business across Canada."
About INEO Tech Corp.
INEO Tech Corp., through its wholly owned subsidiary, INEO Solutions Inc., provides retailers with The Welcoming System, a patented in-store and online advertising platform that enhances the customer experience, monetizes the entrances of retail stores and protects against retail theft. The Welcoming System 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 publicly traded on the TSX-Venture Exchange under the symbol "INEO-V". INEO Solutions Inc. is a registered trademark of INEO Tech Corp. For more information please visit www.ineosolutionsinc.com.
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 Company's Filing Statement dated January 20, 2020 (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.
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.
SOURCE INEO Tech Corp.
For further information: Pardeep S. Sangha, Investor Relations, INEO Tech Corp., [email protected], (604) 283-2974