VSBY:CC - VSBLTY Announces Assumption of Winkel Media Contract
(TheNewswire)
Contract Assumption Will Add $1.7m Annual Recurring Revenue
PHILADELPHIA, PA. – TheNewswire- April 30, 2024 — VSBLTY Groupe TechnologiesCorp. (the “Company” or “VSBLTY”) (OTC:VSBGF) (CSE:VSBY)(Frankfurt 5VS), a leading software provider of security and retailanalytics technology, announces that adefinitive agreement has been reached assume the contract supportingWinkel Media effective February 1, 2024.
VSBLTY’s wholly-owned subsidiary, VSBLTY SPV I, LLC,will assume the balance of the debt of approximately $2.16M USD fromCreative Climate Capital, LLC (CCC) In addition, CCC has agreed toproviding an additional allocation of $800K USD in a credit facilityfor the general operating requirements of VSBLTY. The debt will besecured and subject to a SOFR floating interest rate plus of SOFR + 12%.The debt service is expected to be approximately 30% of gross revenueson a monthly basis. This makes the deal accretive immediately, andVSBLTY expects it will become more accretive as the principal of thedebt gets paid down. This positions VSBLTY to increase margins andallows for the continued growth of the network.
In connection with the transaction with CCC, VSBLTY hasagreed to issue 4.8M 3 year warrants with an exercise price of .135cents per share, subject to regulatory approval.
Mark Paris, Managing Partner and CEO commented,“While we at CCC are focused primarily on various debt-basedfinancings, we were so impressed with VSBLTY, its partners, its planand its team that we waived many of our typical structural componentsin favor of an equity option in VSBLTY. We believe in the future andhave committed to VSBLTY over the long term.”
In addition, the members of the Winkel Media jointventure have agreed to finalize a contract extension that will allowthe amortization of the debt over a longer period and will increasethe revenues associated with the contract.
Jay Hutton, CEO of VSBLTY commented, “The WinkelMedia investment was made more than two and a half years ago. TheWinkel team is reporting month over month revenue growth as well asseveral strategic wins that ensure that long term viability andprofitability of the joint venture. VSBLTY has always played a keyrole in ensuring operational excellence in the delivery of thenetwork. This contract assumption merely formalizes that fact andintroduces a new source of revenue for VSBLTY that helps to supportthe business logic of the investment. The participation of UUC, andthe unexpected show of support, is icing on the cake. We think we havefound a long-term partner that shares our vision for growth.”
On Behalf of the Board of VSBLTYGroupe Technologies Corp.
"Jay Hutton”
CEO & Director
Investor Relations
Harbor Access
Jonathan Paterson, 475-477-9401
Jonathan.Paterson@Harbor-Access.com
Graham Farrell, +1-416-842-9003
Graham.Farrell@Harbor - Access.com
CONTACT: Linda Rosanio, 609-472-0877
About VSBLTY ( http://vsblty.net/ )
Headquartered in Philadelphia, VSBLTY (OTCQB: VSBGF)(CSE: VSBY) (Frankfurt: 5VS) (OTC: VSBGF) (“VSBLTY”) is the worldleader in Proactive Digital Display™, which transforms retail andpublic spaces as well as place-based media networks with SaaS-basedaudience measurement and security software that uses artificialintelligence and machine learning. Its proprietary technologyeffectively integrates with other digital retail solutions, includingQR codes and mobile applications. The firm is also recognized for itsleadership role in the growing Store as a Medium movement that enablesbrands to reach customers when and where buying decisions are beingmade while producing a new revenue stream for retailers.
FORWARD LOOKING INFORMATIONSTATEMENT
This news release includes certain “forward-lookingstatements” under applicable Canadian securities legislation.Forward looking statements are necessarily based upon a numberof estimates and assumptions that, while considered reasonable, aresubject to known and unknown risks, uncertainties, and other factorswhich may cause the actual results and future events to differmaterially from those expressed or implied by such forward-lookingstatements. All statements that address future plans, activities,events or developments that the Company believes, expects oranticipates will or may occur including the Company’s anticipatedpipeline and value of current and customer deployments and futureopportunities are the management’s best estimates and cannot beguaranteed or relied upon and is forward-looking information. Therecan be no assurance that such statements will prove to be accurate, asactual results and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements. The Company disclaimsany intention or obligation to update or revise any forward-lookingstatements in this news release, whether as a result of newinformation, future events or otherwise, except as required bylaw.
Financial Outlook
This news release also containsfuture-oriented financial information and financial outlook(collectively, “FOFI”) about the Company’s projected revenue andmargins from its agreement with Creative Climate Capita and theexpansion of the contractual service elements with Winkel Media, whichis subject to the same assumptions, risk factors, limitations, andqualifications as set forth in the above paragraphs. Although thefinancial projections contained in this news release are based onreasonable expectations developed by the Company’s management, theassumptions and estimates underlying the financial projections aresubject to significant business, economic, and competitiveuncertainties and contingencies, many of which will be beyond thecontrol of the Company. The assumptions used by the Company’smanagement to derive these financial projections include: (i) theCompany’s ability to successfully deliver on the additional serviceselements defined by the contract; (ii) the Company’s pricing targetsremaining in place and cost of sales and expenses being consistentwith VSBLTY’s historical performance; (iii) the Company’spartners’ timely payment pursuant to the contract delivery.Accordingly, the financial projections are only estimates and arenecessarily speculative in nature. It is expected that some – andperhaps all – of the assumptions in the financial projections willnot be realized and that actual results will vary from theprojections.
FOFI contained in this news releasewas prepared using the same accounting principles that the Companyexpects to use in preparing its financial statements for theapplicable periods covered by such FOFI. FOFI contained in this newsrelease was made by management as of the date of this news release andwas provided for the purpose of providing readers with anunderstanding of the potential significance of these businessdevelopments to the Company’s business, and are not an estimate ofprofitability or any other measure of financial performance. Inparticular, revenue estimates do not take into account the cost ofsuch estimated revenue, including the cost of goods and the cost ofsales. In addition, and for greater certainty, revenue estimates do not take into account theoperating costs of the Company. Readers are cautioned that the FOFIcontained in this document should not be used for purposes other thanfor which it is disclosed herein.
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