VANCOUVER, BC, March 24, 2020, Loop Insights Inc. (TSX.V: MTRX) (the “Company” or “Loop”) maintains a positive outlook for the year ahead. Retailers are already working to rebuild their businesses during these unprecedented times, and Loop is here to assist them. Loop is focused on bringing new technologies and tools to brick and mortar retail helping global businesses recover and create new profitable strategies.
The Covid-19 crisis has shaken the market unlike we’ve ever seen. During this time, Loop’s team is working remotely and fully operational. We have created a strong educational strategy for our customers, which includes regular delivery of press releases, blogs, social media content, videos, and podcasts. Over the next months, expect to see consistent, engaging updates from Loop with a steady news flow on company progress.
Since the start of 2020 our team has worked tirelessly to complete the commercialization of our solution stack and introduction of new disruptive technologies and licensing model. With the product being commercialized, by Q2 2020, Loop will benefit from an operational cost reduction of roughly 40%. Additionally, now with a lean and agile team, we are shifting focus on leveraging partnerships, building our client base, and ultimately increasing sales and revenue.
Loop’s latest product milestones have attracted interest and opened up conversations with companies in Canada, the USA, Australia, New Zealand, Thailand, Japan, and Mexico. We are exploring several strategic partnerships that will help achieve global scale. Our revenue model consists of licensing and re-seller distribution agreements, which is designed to grow exponentially as we close deals with large-scale venues, operators, and umbrella companies. This ongoing revenue stream adds long-term value to our shareholders.
As I am extremely confident that Loop will continue to flourish during 2020, I will look to bolster my personal position with continued open market buying. I would also like to advise past participants in previous equity raises that we are in the process of finalizing the repricing of associated warrants.
1. Tap to Engage device: overturns traditional brick and mortar loyalty programs with a simple Near Field Communication (“NFC”) tap opt-in feature, beacon and location-based triggers, and an ability to communicate with users’ wallet passes, even in locked screen mode. Relevant, timely engagement with consumers lead to increased conversion rates and spend.
2. Loop NFC Wallet Pass: integrates seamlessly with Apple and Google Wallet, which makes spending convenient for users. Statistica estimates there will be 1.31 billion proximity mobile payment transaction users worldwide in 2023 (up from 950 million users in 2019). With steady growth in mobile wallet usage, Loop’s ready-to-launch wallet pass will enhance many existing loyalty programs.
3. Third-party programmatic advertising platform: disrupts the traditional advertising space by offering brick and mortar services similar to Google Ads, which is currently an untapped market. Because this new platform offers higher conversion rates (due to the personalization of each promotion), Loop will benefit from two new scalable revenue streams based on a cost per impression, and cost per redemption, model.
Loop’s ability to enhance customer engagement and build new line revenue opportunities are what brick and mortar retailers need coming out of this market volatility. During this time of crisis, Loop has remained focused on leveraging partnerships, increasing education around our solution stack, reducing our burn rate, and implementing revenue streams. Stay tuned for more announcements to come.
Rob Anson
CEO, Loop Insights
Cathy Hume, CEO
T: 416-868-1079 x 231
E: cathy@chfir.com
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.