INEO Tech Corp. (TSXV: INEO) (OTCQB: INEOF) (the “Company” or “INEO“), the developer and operator of the INEO Media Network, a digital advertising and analytics solution for retailers, is pleased to announce it has entered into updated commercial agreements with its large national retail and regional liquor-store network locations. The updated contracts feature 5-year and 6-year contract lengths, exclusive in-store advertising rights, deployment of additional in-store media screens, the right to assign the ownership of the INEO Welcoming System hardware deployed in the retail stores and the right to assign ownership of INEO’s exclusive advertising contracts to a third-party media partner. The updated agreements are expected to position the Company for rapid growth and improved margins.
“We expect these contracts to accelerate our revenue growth on our in-store Retail Media Networks and provide the framework to significantly reduce our cash needs and expenditures,” said Kyle Hall, CEO of INEO. “INEO’s patented Welcoming System technology generates demand from retailers and strategically restructuring our customer agreements provides us with the opportunity to bring in the right media partner to fuel the monetization of our customer contracts. As a result, we expect to be able to expand the business faster while optimizing capital allocation, with the ultimate goal of reaching a cash flow positive position much sooner.”
The key aspects of INEO’s restructured retailer agreements are:
- terms of 5 years and 6 years;
- the right to deploy additional media screens elsewhere in the store;
- the exclusive right to sell in-store advertising on the network;
- the right to assign ownership of the in-store advertising agreement to a third-party media partner; and
- The right to assign the ownership of the INEO Welcoming System hardware deployed in the retail stores.
“This updated contract structure should allow us to match the strong demand for INEO Welcoming Systems from our retail customers with the demand for access to the INEO Media Network display screens from media companies,” stated Greg Watkin, Chairman and Founder of INEO. “We expect this new contract structure to increase our flexibility in marketing, distributing and expanding our INEO Media Network and ultimately driving revenues.”
The Company will hold a webinar to discuss the new contracts and provide an outlook on the business on Thursday, September 28, 2023 at 10:00 am PT (1:00 pm ET). The call will be hosted by: Kyle Hall, Chief Executive Officer; Greg Watkin, Chairman and President and Pardeep S. Sangha, Head of Investor Relations.
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