VANCOUVER, British Columbia, July 15, 2019 – Loop Insights Inc. (“LOOP” or the “Company”) (TSX.V: MTRX) today announced it has entered into a license agreement (the “Agreement”) with Kinect Technology Inc. (“Kinect”), pursuant to which Kinect will use Loop’s AI-powered technology in connection with its Smart and Connected City project. Kinect is architecting an advanced digital solution stack of technology and connectivity in global destinations with tech-enabled, human-centric services that intend to transform the physical retail environment.
“Our vision is to drive digital transformation across global destination cities commencing in Las Vegas, Hawaii and Japan,” says Reo Kobayashi, CEO of Kinect. “The integration of Loop’s technology into Kinect’s existing eco-system will generate and maximize value in the current marketplace and bring significant synergistic growth opportunities in both the short and long term.”
Loop CEO Rob Anson states: “We see our partnership with Kinect as a great opportunity for Loop to further its penetration in the US market place. We are also very excited about the opportunity to introduce Loop’s new product Fobi into the Asia Pacific marketplace”.
Terms of the Agreement
Pursuant to the terms of the Agreement, which was previously reviewed by the TSX Venture Exchange (the “Exchange”) in connection with the Company’s listing, Kinect shall pay an aggregate of $5,000,000 to Loop consisting of: $2,000,000 payable by cash in 4 equal payments of $500,000 on each of: October 15, 2019, and the first, second and third anniversaries of the Agreement; and $3,000,000 payable by the issuance of 12,000,000 common shares of Kinect at a deemed price per share of $0.25.
All common shares of Kinect issued to Loop in accordance with the terms of this Agreement shall be subject to the standard 3-year escrow provisions set out in National Instrument 46-201 for emerging public companies, with such escrow provisions to apply whether the common shares of Kinect are listed by way of an initial public offering or through any other transaction. A copy of the Agreement is available under Loop’s SEDAR profile available at www.sedar.com.
Kinect is a global provider of smart technologies to destination cities. Kinect specializes in creative media and technology solutions as we help our clients and partners thrive in a connected world with products, services and platforms that transform the consumer experience. We distill complex customer data into uniquely tailored experiences as we orchestrate physical and digital exchanges into one seamless journey. Our partnership will bring together solid agency know-how, strong channel relationships and a best-in-class media offering. For more details on Kinect, please visit: www.getkinect.io.
Forward Looking Statements/Information:
This news release contains certain statements which constitute forward looking statements or information, including statements regarding Loop’s business and technology; the ability of Loop to engage with industry participants to achieve its goals; the development of Loop’s technology; and the viability of Loop’s business model. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Loop’s control, including the impact of general economic conditions, industry conditions, competition from other industry participants, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Loop believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, Loop does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Trading in the securities of Loop should be considered highly speculative. There can be no assurance that Loop will be able to achieve all or any of its proposed objectives.
Neither the 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.