Snipp Executes Its First Five-Year Hospitality Loyalty Agreement Based on a Variable Pricing Model With a Guaranteed Floor an...
April 05 2018 - 8:43AM
TORONTO, April 05, 2018 (GLOBE NEWSWIRE) --
Snipp Interactive Inc. ("Snipp" or the “Company”) (OTCQB:SNIPF)
(TSX-V:SPN), a global provider of digital marketing promotions,
rebates and loyalty solutions, is pleased to announce that it has
entered into a 5-year loyalty services agreement with a hospitality
company based on a variable pricing model with a guaranteed
floor.
Apart from gaining traction in the
well-established hospitality space, this Agreement marks Snipp’s
first foray into a five-year long-term agreement based on a
variable pricing model, with a guaranteed floor. This allows the
company to enjoy the upside associated with programs that grow
their membership over time versus taking fixed fees.
“With the popularity of this particular loyalty
program, which is projected to rapidly grow and based on
conservative projections provided by our Client, we are optimistic
that this agreement will result in a consistent recurring revenue
stream for the company estimated to be anywhere between $500,000
and $1,000,000. Given that this is our first entry into a
variable pricing model, we have protected ourselves against any
possible downside with a guaranteed floor of $400,000,” said Atul
Sabharwal, Chief Executive Officer at Snipp. “This year we are
extremely focused on exploiting opportunities in new industries
such as Hospitality and Cannabis, as previously discussed. There is
a clear market need in both of these industries for software
solutions such as ours that are cost effective, scalable and based
on flexible business models.”
The Company is also pleased to announce that due
to additional investor interest, the Company has increased the size
of the non-brokered private placement (the “Financing”), previously
announced on March 2, 2018. The Financing will now be comprised of
up to 35,000,000 common shares ("Shares") at a price of CAD $0.10
per Share, for gross proceeds of up to CAD $3.5 million. Closing of
the Financing will occur in tranches. The Company has already
closed four tranches to date, comprised of 25 million shares at a
price of CAD $0.10 per Share for gross proceeds of CAD$2.5 million.
The Company is expecting insider participation of over 50% of this
final tranche.
All Shares issued pursuant to the Financing will
be subject to a four-month hold period under applicable securities
laws in Canada, as well as the policies of the TSX-V, where
applicable. Finder's fees may be payable to certain finders in
connection with the Financing, subject to the approval of the
TSX-V. The net proceeds raised through the Financing will be used
for sales & marketing and general working capital purposes.
About Snipp:
Snipp is a global loyalty and promotions company with a singular
focus: to develop disruptive engagement platforms that generate
insights and drive sales. Our solutions include shopper marketing
promotions, loyalty, rewards, rebates and data analytics, all of
which are seamlessly integrated to provide a one-stop marketing
technology platform. We also provide the services and expertise to
design, execute and promote client programs. SnippCheck, our
receipt processing engine, is the market leader for receipt-based
purchase validation; SnippLoyalty is the only unified loyalty
solution in the market for CPG brands. Snipp has powered hundreds
of programs for Fortune 1000 brands and world-class agencies and
partners.
Snipp is headquartered in Toronto, Canada with
offices across the United States, Canada, Ireland, Europe, and
India. The company is publicly listed on the OTCQB, of the OTC
market in the United States of America, and on the Toronto Stock
Venture Exchange (TSX) in Canada. Snipp was selected to the TSX
Venture 50®, an annual ranking of the strongest performing
companies on the TSX Venture Exchange, in 2015 and 2016. SNIPP IS
RANKED AMONGST THE TOP 500 FASTEST GROWING COMPANIES IN NORTH
AMERICA on Deloitte’s 2017 Technology Fast 500™ List, for the
second year in a row.
Visit the Snipp website at www.snipp.com for
examples of Snipp programs.
FOR FURTHER INFORMATION PLEASE CONTACT:
Snipp Interactive Inc.
Jaisun Garcha
Chief Financial Officer
investors@snipp.com
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements that involve risks and uncertainties, which may cause
actual results to differ materially from the statements made. When
used in this document, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions are intended to identify forward-looking
statements. Such statements reflect our current views with respect
to future events and are subject to such risks and uncertainties.
Many factors could cause our actual results to differ materially
from the statements made, including those factors discussed in
filings made by us with the Canadian securities regulatory
authorities. Should one or more of these risks and uncertainties,
such as changes in demand for and prices for the products of the
company or the materials required to produce those products, labour
relations problems, currency and interest rate fluctuations,
increased competition and general economic and market factors,
occur or should assumptions underlying the forward looking
statements prove incorrect, actual results may vary materially from
those described herein as intended, planned, anticipated, or
expected. We do not intend and do not assume any obligation to
update these forward-looking statements, except as required by law.
The reader is cautioned not to put undue reliance on such
forward-looking statements.
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.
Copyright Snipp Interactive Inc. All rights
reserved. All other trademarks and trade names are the property of
their respective owners.
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