NEWSOctober 12, 2011 13:40 ET
iSIGN Media and SelectCore Announce the Signing of a Letter ofIntent to Build the Largest Mobile Proximity-Advertising Footprint
TORONTO, ONTARIO--(Marketwire - Oct. 12, 2011) -SelectCore Ltd. ("SelectCore") (TSX VENTURE:SCG) and iSIGN MediaSolutions Inc. ("iSIGN" or "Company") (TSX VENTURE:ISD) are pleased toannounce that they have signed a Letter of Intent ("LOI") to build-outthe largest retail mobile proximity-advertising footprint in NorthAmerica.
Under the terms of the LOI, iSIGN and SelectCore are planning toembed iSIGN's patent-pending Interactive Marketing Solution ("IMS") 3.1software and its newly developed Smart Antenna into SelectCore'sVerifone Point of Sale ("POS") terminals in up to 7,000 convenience andgrocery store locations throughout Canada and the United States. Thelength of the agreement will be three years, with an automatic renewalperiod of an additional three years.
"This opportunity came to us from the announcement regarding theCouche-Tard/Mac's Convenience Stores network and installation," saidAlex Romanov, iSIGN's Chief Executive Officer. "We believe that this is atremendous opportunity for us to build-out a second advertisingfootprint, similar to the Couche-Tard model."
Based upon previous test installations, iSIGN has the ability toreach an average of approximately 1,000 mobile devices within proximityof each of its installations. This reach would result in our SmartAntenna contacting approximately 7 million viewers daily. The size ofour reach makes our mobile advertising method extremely cost efficientand effective to potential advertisers in comparison to television,radio, papers as well as more traditional direct marketing.
As a result of the size of our reach, our expectation is that a fullnetwork roll-out has the potential to generate at least $10 million inrevenue annually from advertising and Anonymous Mobile Analytics ("AMA")data per year. Of the $10 million in advertising revenue, SelectCorewill retain 80% and iSIGN 20%. iSIGN expects, based upon its rate card,that licensing revenues for iSIGN's technology will have the potentialto generate approximately $4.2 million annually.
iSIGN's cost to build this network with iSIGN's newly developed SmartAntennas, will be approximately $1.050 million in capital expenditures.
"The introduction of our new Smart Antenna combines cost efficiencywith improved metric-gathering abilities from virtually all mobiledevices," added Mr. Romanov. "This installation will provide our initialentry into the US market, in addition to expanding our nationalcoverage in Canada, making the network very appealing to advertisingagencies and national brands."
"iSIGN's technology allows us to monetize and maximize the value ofour retail point-of-sale network and access to a market of millions ofconsumers with mobile phones" commented Keith McKenzie, CEO ofSelectCore. "Aligned with our growth strategy, this partnership has thepotential to generate a new, high-margin revenue stream with virtuallyno capital expenditures".
About SelectCore
Established in 1999, SelectCore is a leading provider of transactionprocessing and point-of-sale solutions for the prepaid telecom marketand prepaid financial services sector. From prepaid mobile top-up tostored-value cards and remittance solutions, SelectCore services amarket of millions of under-banked and credit-challenged consumersthrough its technology platforms and retail distribution network acrossCanada and the United States. SelectCore is a publicly traded companylisted on the TSX Venture Exchange under the symbol "SCG" (TSXVENTURE:SCG). SelectCore was ranked by Profit100 Magazine as one ofCanada's fastest growing companies in 2006, 2007, 2009 and 2010.