AGREE TO JOINTLY CREATE INTERNATIONAL DIGITAL IN-STORE MEDIA VSBLTY, GRUPO MODELO & RETAILIGENT FORMALIZE AGREEMENT TO JOINTLY CREATE INTERNATIONAL DIGITAL IN-STORE MEDIA NETWORK
2021-03-15 07:10 ET - News Release
Philadelphia, PA, March 15, 2021 (GLOBE NEWSWIRE) -- VSBLTY Groupe Technologies Corp. (CSE: VSBY) (Frankfurt: 5VS) (OTC: VSBGF) (“VSBLTY”), a leading software provider of security and retail analytics technology, along with Mexico’s Grupo Modelo (“Modelo”) (part of the AB InBev family of companies) and Retailigent Media have formalized an agreement (the “Agreement”) to enter into a joint venture by the end of Q2 to install and manage an international in-store media network of up to 50,000 Modelorama stores and independent neighborhood bodegasin Mexico and across Latin America by the end of 2024, it was announced today. Active deploymentis already underway in Mexico, Colombia, Peru, and Ecuador with 5000 locations to be installed by the end of 2021.
In addition to being an international advertising network, it will provide real-time security for store owners, powered by artificial intelligence, as well as integration of store traffic and customer demographics with sales and critical operations-related data to help stores optimize their business.
VSBLTY Co-founder & CEO Jay Hutton said, “The deployments are already underway in Mexico, Colombia, Peru, and Ecuador and we have started contracting media time to consumer-packaged goods brands to advertise to Latin American shoppers right at point-of-sale where buying decisions are made. VSBLTY will be supplying its proprietary software for analytics, security, and visual display,” Hutton said. “The three firms will be equal partners in the joint venture. VSBLTY will earn revenue from the joint venture in two ways. First, and more modestly, from the licensing fees to VSBLTY for the proprietary software that will be leveraged by the joint venture, and second, and most significantly, VSBLTY will share in one-third of the annual operating profits from advertising revenue, modeled to be greater than $200MM USD in total to the joint venture over the first five years,” he concluded.
AB InBev is the world’s largest brewer with a diverse portfolio of more than 500 brands, including iconic global beers Budweiser, Corona, and Stella Artois. Part of AB InBev, Grupo Modelo is the leader in the production, distribution, and sale of beer in Mexico and owns and operates Modelorama, Mexico’s second largest convenience store chain.
Pedro Garavito, Vice President of Technology & Transformation, Middle Americas, said, “By leveraging technology and analytics we can play a pivotal role in the communities we serve by improving the safety and quality of the shopping experience for the millions of store owners with whom we do business every day. Not only can the various solutions around Internet of Things (IoT) offer real time access to point-of-sale systems to allow store owners to dynamically optimize their business, but we can also incorporate security, consumer analytics and display advertising under the same platform. At the same time, we will be enabling local store owners and operators to remain competitive as retail consolidates in most Latin American markets. The innovation and agility provided by VSBLTY and Retailigent Media, when coupled with our reach, will allow us to have a meaningful and positive impact on the retail industry in Central and South America.”
Thiago Porto, VP of Transformation and People, Middle Americas, said, “This exciting plan of action—with a target of a 50,000-store deployment by 2024— will enable traditional neighborhood stores, the most important channel for consumer products in Latin America, to keep pace as the retail industry goes through monumental digital transformation.”
Retailigent Media, with offices in Mexico and five other Latin American countries, is the leading company in Mexico for smart retail solutions, analytics, and smart displays. Retailigent provides advertising and marketing insights to some of the world’s leading brands, including P&G, Coca-Cola, Diageo, and Telefonica. “We have a long-standing working relationship with VSBLTY and we are partnering with RADAR App to support in-store security in each of the stores we plan to develop throughout Latin America. Radar App is the first collaborative security solution in the world that is already being utilized in Mexico City counties. Now we will be working together to help Grupo Modelo create a new revenue stream for their stores, improve security, and become an attractive media channel as well,” according to Rodrigo Velasco, Retailigent Media CEO & Co-founder.
In connection with entering into the Agreement, VSBLTY has agreed to issue to Modelo 15,500,000 common share purchase warrants of VSBLTY (the “Warrants”). Each Warrant will be exercisable to acquire one common share of VSBLTY for a period of five (5) years from the date of issuance at an exercise price of at CAD $0.84 per share, subject to the following vesting conditions:
(a) 15% of the Warrants will vest immediately as a result of execution of the Agreement;
(b) 15% of the Warrants will vest upon execution of the definitive agreements for the joint venture;
(c) 20% of the Warrants will vest upon the joint venture having been installed and operating in at least 1,500 locations;
(d) 20% of the Warrants will vest upon the joint venture having been installed and operating in at least 5,000 locations;
(e) 15% of the Warrants will vest upon the joint venture having been installed and operating in at least 20,000 locations; and
(f) 15% of the Warrants will vest upon the joint venture having been installed and operating in at least 30,000 locations.
In addition, VSBLTY will issue to Modelo 2,500,000 additional Warrants upon the joint venture having been installed and operating in at least 1,500 locations and a further 2,500,000 additional Warrants upon the joint venture having been installed and operating in at least 5,000 locations (collectively, the “Additional Warrants”). The Additional Warrants will have an exercise price equal to the closing price of VSBLTY’s common shares on the last trading prior to reaching the 1,500 locations milestone and will be exercisable for a period of five (5) years from the date of issuance.
VSBLTY technology provides enhanced customer engagement and audience measurement including store traffic and customer demographics. Its industry-leading VisionCaptor™ and DataCaptor™ software combine motion graphics and interactive brand messaging with cutting-edge computer vision measurement and insights. VSBLTY’s AI-driven software, Vector™ provides advanced facial recognition that is crucial to enhancing security in a variety of environments.