Glance Technologies Inc. (OTCQB: GLNNF) (CSE: GET) announced today that, further to its news release dated January 4, 2018, Glance has received an equity stake in Loop Cannabis Insights Inc. (formerly Cannabis Big Data Holdings Inc.) of 4,000,000 common shares, with a deemed valued of $1,000,000.
Loop Cannabis Insights Inc. (“Loop Cannabis”) is a new company that intends to offer licensed cannabis producers, retailers and manufacturers insights into customer behaviour and intends to use cutting-edge artificial intelligence and machine learning algorithms to process transactional purchase data. With the sublicence from Glance, Loop Cannabis has the potential to receive revenue streams from mobile payment services and rewards and targeted mobile advertisements and offers.
Loop Cannabis plans to use several key data points to enable real-time actionable strategies for merchants, making it well poised to take advantage of the substantial opportunities in both the cannabis and big data spaces.
Worldwide revenues for big data and business analytics were projected to surpass $150 billion in 2017 on year-over-year growth of more than 12 per cent, according to IDC.1 The Canadian cannabis industry, meanwhile, saw an estimated CAD$5.7 billion in spending in 2017. Nearly 5 million Canadians took part, spending an average of CAD$1,200 per consumer, according to Statistics Canada, the vast majority of which being for recreational purposes.2 Globally, the legal cannabis market is forecasted to surpass $31 billion by 2021, with Canadian companies representing about 40 per cent of that market.3
“Loop Cannabis Insights intends to be a global leader in providing consumer insights to the cannabis Industry,” says Glance Technologies president and COO Penny Green. “Through Glance we have assembled a leading technology and marketing team that will make Loop best-in-class for its product offering, with an eye toward being first to market.”
Loop Cannabis plans to combine the technology licensed from Glance with its big data analytics hardware and software to provide insights for cannabis retailers and producers.
By leveraging its unique point-of-sale and mobile technology, dispensaries partnered with Loop Cannabis can expect to passively and safely collect consumer data. Loop Cannabis’ technology will bridge the data gap between e-commerce and bricks-and-mortar retail, an important step for building a 360-degree understanding of customers for retailers, brands and advertisers.
With the technology it is developing, Loop Cannabis intends to help merchants delve deeper into the preferences and profiles of their customers. With real-time analysis and hyper-local accuracy, it is possible for clients to gain actionable data for identifying and managing sales cycles and trends.
The data currently available to managers of dispensaries is from legacy point-of-sales systems and is not immediate, personalized or actionable. Loop Cannabis plans to allow dispensaries to see their data live, so they can make decisions that benefit their business and clients sooner, faster and more efficiently.
In conjunction with the closing, Glance partially owned subsidiary Cannapay Financial Inc. also received 11,200,000 shares in Loop Cannabis for licensing and product distribution rights.
Concurrent to this transaction, Loop Cannabis has also closed $1,220,000 in financing from various investors through a private placement of common shares valued at $0.25.
Cannapay and Glance respectively own 32% and 11% equity stakes in Loop Cannabis.
The following are the material terms of the transaction:
- Cannapay sublicensed the Glance Pay mobile payment platform technology to Loop Cannabis for $2,000,000 for a one-year renewable license, payable in stock with 8,000,000 shares, valued at $0.25 per share. Of that, 4,000,000 shares have been issued to Glance Pay Inc., a wholly owned subsidiary of Glance Technologies, as a sublicense royalty.
- Cannapay’s subsidiary Juve granted to Loop Cannabis the non-exclusive right to manufacture and distribute 21 wellness products — including massage oils, facial creams, moisturizers, soaps, lip balm and bath bombs — in North America for $1,800,000, payable in stock for 7,200,000 shares at $0.25 per share. This agreement includes a $200,000 advance order for products, at wholesale prices, payable by Loop Cannabis in cash upon delivery.
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