Vsblty closes second tranche of private placement for $2.5M, Q2 revenue up
Vsblty, the Canadian biometrics provider for retail analytics and security, has announced the closure of the second tranche of its previously announced non-brokered private placement for gross profits, which the firm intends to plough back to attain some of its corporate business goals.
The company says it has also settled some of its debts, while its revenue for Q2, 2022, has seen a big leap from figures of the same period a year prior.
The second tranche proceeds of $2,466,550 were earned from the sale of units offered and sold under the Public Offering by way of a short form prospectus filed in the provinces of British Columbia, Alberta, Saskatchewan and Ontario, according to a company announcement.
Alongside first tranche of the Private Placement, the company says it has raised, in aggregate, total gross proceeds of approximately $3,361,519 under the Private Placement, with a third tranche expected to close this month for gross proceeds of up to $845,000 pending receipt of funding.
Vsblty says it will to use the proceeds of the Private Placement for sales, marketing, and research and development of its retail facial recognition and analytics, capital expenditures, working capital and general corporate purposes.
Regarding the debt settlement, the company indicates that the sum of CAD$327,500 (US$250,000) will be paid to insurance partner Joseph Brett Studner. The settlement consists of the issuance of 650,000 Units at a deemed issue price of CAD$195,000.00 (US$150,000.00), being CAD$0.30 per Unit, and a cash payment of CAD$132,500 (US$100,000.00) plus all additional outstanding interest accrued.
Vsblty Q2 revenue impressive
In a separate press release, Vsblty says it raked in revenues of $3.2 million for the second quarter of the current year, which represents a 161 percent increase over Q1, and 10 times greater than last year’s Q2 earnings, which stood at $293K.
In terms of operating losses, the company says it incurred $1.4 million in Q2, 2022, as against $4.9 million during Q1, 2022.
Commenting on the feat, Vsblty Co-founder and CEO Jay Hutton said: “My team and I are pleased with our Q2 results as they continue to validate our category leadership and the momentum that Store as a Medium has in the marketplace. The company continues to battle through the various marketplace challenges, day-to- day, to remain on track to achieving our annual goals and commitments to our shareholders.”
Hutton said the company has an Accounts Receivable balance of $3.0 million and that it has provided $1.2 million in funding to Winkel Media, its Latin American partner, as of June 30th, 2022, as part of its joint venture agreement. The partners are planning to bring Vsblty’s face biometrics and other technologies to 50,000 stores in Latin America.
Vsblty says it has a remaining bookings backlog amounting to $50 million in total contract value, which is expected to mostly be realized over the next four years.