/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/
CALGARY, Nov. 14, 2016 /CNW/ - Trakopolis IoT Corp. ("Trakopolis") (TSXV:TRAK), a cloud-based platform for interfacing mobile communications, software applications and location-based services, today announced that it has acquired all rights to the Electronic Logbook (ELOG) software assets from privately-held Verigo Inc. ("Verigo") based in Alberta.
"Given our expectation of a forthcoming requirement for commercial drivers to use ELOG technology, adding the Verigo solution as a complimentary product couldn't come at a better time," said Brent Moore, President and Chief Executive officer of Trakopolis. "The Federal Motor Carrier Safety Administration (FMCSA) has estimated that there are 6 million commercial vehicle drivers operating in the United States. Verigo's extensive rule-set knowledge and experience in ELOG positions Trakopolis to approach this vertical with a mature product, qualified sales funnel, and established channel partners."
ELOG capability provides Trakopolis with a complete platform to allow fleet operators to comply with the FMCSA's announced Electronic Logging Device (ELD) mandate in the United States, which is expected to come into effect in 2017. The Company expects a similar requirement in Canada to follow. The ELD mandate requires commercial vehicle drivers that are required to keep Records of Duty Status (RODS) logs to transition to ELOG-based records over the two-year transition period beginning in December 2017.
The purchase price of the Verigo software assets is $1,500,000 (the "Purchase Price"), and will be paid through a per-user royalty (the "Royalty") not to exceed 10 years. Existing Verigo subscribers will be transferred over to Trakopolis, however Royalty from such subscribers will not be applied to the Purchase Price.
TRAKOPOLIS provides business intelligence services and software to organizations requiring current information and relevant data on the location and status of corporate assets such as: equipment; devices; vehicles; and people.
TRAKOPOLIS is a proprietary Software as a Service (SaaS) solution suitable for the customized tracking and analytics requirements of many verticals.
Disclaimer for Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding: the business and operations of Trakopolis; the payment of the Royalty; the legislative or regulatory changes; the integration of ELOG with Trakopolis' existing business; the market opportunity of ELOG technology; and sales and revenue from ELOG. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the market opportunity and commercial success of ELOG; sales of ELOG to existing and new customers; general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments, including legislative developments with respect to ELOG; those additional risks set out in the Trakopolis' public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although Trakopolis believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Trakopolis disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
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.
SOURCE Trakopolis IoT Corp.
For further information: Brent Moore, President and Chief Executive Officer, Trakopolis IoT Corp., Telephone: (403) 450-7854, Email: [email protected]; Investor Relations: Dennis Fong, LodeRock Advisors Inc., Telephone: (647) 797-3376, Email: [email protected]; David Feick, LodeRock Advisors Inc., Telephone: (403) 831-7557, Email: [email protected]