(The INEO Welcoming Network. Image via INEO Tech Corp.)
Do you know where a retail store’s most valuable real estate lies? It is the first thing you see when you walk through the door – the front entrance.
That first impression can determine just how your shopping experience will go and the leading product developed by Surrey,
BC-based
INEO Tech Corp. (TSX-V: INEO) can not only give shoppers a great impression, but can also relay useful data to the store’s owners.
The INEO Welcoming Network (pictured above), is a patented in-store and online location-based advertising network that serves three key functions:
- It enhances the customer experience
- Monetizes the entrances of retail stores by displaying advertising and collecting analytics
- Protects against retail theft
This cloud-based digital advertising and data analytics system sends customized advertising to digital screens integrated with theft detection sensors at the entrance of retail stores.
Now this provider of digital advertising, data analytics, and loss prevention solutions has taken the reach of its Welcoming Network even further with the recent signing of a Letter of Intent with
Prosegur EAS USA Inc., a wholly owned subsidiary of
Prosegur Compania de Seguridad. Prosegur is a multi-national company headquartered in Madrid, Spain, who reported sales of approximately 4.2 billion Euros in 2019 while operating in 26 countries with over 160,000 employees offering global and comprehensive security solutions.
Under the deal, Prosegur will distribute and install INEO’s Welcoming Systems in its retail outlets across North America, Latin America and Europe. It is a favorable deal for INEO, as Prosegur will be responsible for the funding, manufacturing, distribution, in-store setup, and in-store maintenance of INEO's Welcoming Systems. Prosegur also offers some protection for INEO, as it holds the right to fund and prosecute intellectual property rights and protection (on INEO's behalf) for the Company’s proprietary patented technology, under the terms of the LOI.
Meanwhile, INEO will take care of online provisioning, operating, and managing for the INEO Welcoming Network, while also providing location-based analytics to Prosegur and its retail clients for which INEO will receive a
monthly recurring revenue fee.
In
a January 2021 media release detailing the launch this relationship for investors, INEO’s Chief Executive Officer, Kyle Hall stated that Prosegur has enormous reach into some of the largest retailers in the world.
“Prosegur has a very strong brand name, significant financial means and an enormous distribution network to scale the INEO Welcoming Network. Together our aim is to roll out and expand the INEO Welcoming Network to thousands of retail locations around the globe. This arrangement with Prosegur also shifts INEO on to a Software-as-a-Service (SaaS) business model with high-margin revenue streams and predictable cash flows.”
INEO’s Chairman and President, Greg Watkin added that this partnership positions his Company for significant growth through the global expansion of its Welcoming Network into large national and international retailers.
“Working with Prosegur will significantly boost our sales, manufacturing, distribution and installation capabilities, thereby allowing INEO to concentrate on advancing its intellectual property and extending the features and functions of its best-in-class technology solutions.”
The value of security cannot be understated. Millions of dollars are lost from thievery, but INEO reported that an increase in its online sales of loss prevention products led to a 42% increase in revenue in its fiscal Q1 2021.
Investors should keep track of this partnership, as both parties continue to install and secure the Welcoming Systems into several pilot locations within some of the largest retailers around the globe. Later this quarter, INEO and Prosegur are expected to enter into a Definitive Agreement.
Not only is a first impression crucial to the success of a retail business, the presence of INEO Welcoming Network helps defend that business from capital losses on the floor. Combining the unique tech that the Company is delivering, with the full support from a multinational corporation like Prosegur through this Letter of Intent, yields a great opportunity for traders who are looking for a unique investment to deepen their due diligence.
For more on this Company, visit
ineosolutionsinc.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing Ltd.