VANCOUVER, BC / ACCESSWIRE / August 29, 2019 / LOOP Insights Inc. (TSXV:MTRX) (the "Company" or "Loop") today announces the rationale behind the non-brokered private placement at a price of $0.28 per unit for gross proceeds of up to $1M announced yesterday.
The Company's original intention was to do a larger raise later in the Fall of 2019 as it anticipated substantial operational increases in order to put the support and management systems in place to meet the needs of several large-scale projects the Company has been engaged in. As discussions with two major business entities have progressed into proof-of-concept stage much earlier than anticipated, the Company has realized some of the investments into infrastructure need to be put in place sooner.
Loop's potential partners have commenced their thorough due diligence on the Company. Part of due diligence is showing Loop's ability to scale to the partners' long-term business needs. The Company needs to add to its front-end support and tech development teams as well as additional back-end resources. There are several software management platforms that Loop will need to license and add to its support systems immediately. These licenses will have substantial upfront costs in order to start integration as soon as possible.
All of the above-mentioned means significant additional operational expenses, which originally weren't expected until later in Q4. Therefore, Loop's Management decided to initiate a small private placement offering to raise resources needed in due diligence requirements that will ultimately keep the Company in a place of strength and fuel the growth opportunities at hand.
Rob Anson, Founder & CEO of Loop, says: "While we understand that the timing of the placement is not ideal, management is trying to be proactive in putting these resources together to support the business opportunities Loop has been engaged in. This will give our large customers confidence in Loop's ability to support their needs while presenting exceptional market growth opportunities for the Company."
LOOP Insights Inc. (TSXV:MTRX) is a Vancouver-based technology company that has developed a unique automated AI marketing platform that intends to level the playing field for brick and mortar retailers in their battle with online digital competition. LOOP gives brands and retailers the capability to inter-connect their physical and digital ecosystems by using the device that can be plugged into any point of sale environment, independent of hardware or IT networks, thus enabling rapid deployment and global scale. Retailers and brands benefit from making real-time, data-driven decisions that help them curate unique personalized customer experiences in stores, a capability which previously did not exist.
For more information, please contact:
LOOP Insights Inc.
Soy Garipoglu, Manager, IR
CHF Capital Markets
Cathy Hume, CEO
T: 416-868-1079 x 231
LOOP Website: www.loopinsights.ai
This news release contains certain statements which constitute forward-looking statements or information. 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, and 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. 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.
SOURCE: LOOP Insights Inc.
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