Toronto, Ontario--(Newsfile Corp. - April 30, 2019) -Braingrid Limited ("Braingrid" or "Company") (CSE: BGRD), a global technology provider of real-time cultivation analytics in Precision Agriculture using its affordable, scalable and easy-to-deploy sensor platforms, is pleased to provide this corporate update.
Product & Service Platform Transition
The Company announced on April 17, 2019 the launch of a new program initiative called Braingrid Data Intelligence ("BDI"). The BDI program provides regular analytical reports to customers on data collected from sensors provided by Braingrid and other third parties. Braingrid's highly trained Data Science Team analyzes data that customers don't have the time or in-house expertise to do, thereby providing recurring cost-efficient reports on valuable statistics. Currently there are six reports available dealing with Anomaly Analysis in Temperature, Humidity, CO2, Powdery Mildew and Spider Mite Scores, and Vapor Pressure Deficit Chart Analytics. More reports are currently in development. This transition from focusing primarily on sensors to offering customers valuable cultivation information they can act on, still relies on Braingrid's real-time sensor platform providing enhanced visibility on yield variances and predictive pathogen outbreaks. It is anticipated that eventually these reports will be expanded to deal with other cost-driving challenges facing the agriculture sector such as energy consumption. In addition to analytic reports and sensor equipment, the Company is now offering access to its in-house Data Science Team on an hourly rate basis to allow customers a way to achieve deep learning on millions of data points. Current and new customer response to Braingrid's new BDI program has been exceptional.
Investment Rescission
As disclosed in the Company's listing statement, in October 2018, MGX Minerals Inc. ("MGX") purchased 812,500 units (consisting of common shares and common share purchase warrants of Braingrid) of Braingrid Corporation (exchanged for 1,625,000 common shares of Braingrid Limited on completion of the transaction with Match Capital) for a total consideration of $650,000 with the consideration to be satisfied through the issuance of 1,000,000 common shares in the capital of MGX at a deemed issue price of $0.65. Although the Company delivered the certificates for the securities underlying the units to MGX, it did not receive the 1,000,000 common shares of MGX that were to be issued to pay for such securities despite repeated assurances that such certificates would be delivered. MGX has rescinded the transaction and the 1,625,000 common shares and common share purchase warrants have been returned for cancellation. As set forth in the Company's listing statement the Company had intended to dispose of the shares of MGX on the market on an if and when needed basis and the rescission of the transaction has reduced the cash available for the Company to operate as planned. The Company is currently reviewing potential financing sources to address this short-fall in anticipated funds. Further details regarding any potential financing will be provided once known.
Staff Changes
The transition of product positioning to data analytics has caused a shift in the development needs for product software. As a result the Company has laid-off a certain number of employees to streamline its operations and focus on its new initiatives. The Company appreciates and thanks the employees who are no longer with the firm and wishes them the best in their future endeavors.
R2G
On May 16, 2018, the Company entered into a Strategic Alliance Agreement with R2G Global, LLC and Rent2Grow Canada Inc. (collectively "R2G"). R2G intended to deploy franchised grow facilities throughout North America allowing individuals to safely and cost-effectively grow their legal limit of four plants in a 4X4 foot smart pod. Braingrid's role was to provide controls and monitoring for the pods. The agreement required purchases over a three year period, the first year set to occur prior to May 15, 2019 for 1500-3000 pods. R2G encountered partnership difficulties which in turn caused financial challenges culminating in the failure of the venture to raise its required funds. As a result, the Company will be terminating the agreement and Braingrid is considering its options for the recovery of damages. The loss of these sales over the three year period during which the agreement was to run will have a material impact on the Company's projected revenues which may or may not be recovered with new sales initiatives, some of which are described in this Update. The technology developed for R2G remains with Braingrid as valuable hardware and software that can be redeployed in other products. The Company is also exploring funding opportunities with the Industrial Research Assistance Program (IRAP) leading to commercialization of a new/updated product.
Integration Partners
In addition to a long-standing relationship with Canada's market leader Ample Organics, the Company has during the last two months announced new integration relationships with A&L Laboratories, Cannabis OneFive, Scanit, Isolocity and TRAK. These relationships are valuable to customers since all information is shown in one place. Equally important, Braingrid is able to analyze customer data generated from various third party systems to gain deeper learning to achieve better crop yields and avoid pathogen risks. Integration relationships also foster new business for Braingrid and its partners once new customers learn about these efficiencies. Braingrid expects to continue to build these relationships and plans to announce new integrations throughout North America.
New Business Partnership
Braingrid is in discussions with a US based seed-to-sale company ("USCO") with customers in over 20 states and a dozen countries. The parties are negotiating a Letter of Intent to enter into a long term business partnership whereby USCO will use its extensive sales network to promote Braingrid's products and services in the US to bolster their existing offerings. Braingrid currently has two US customers and considers the US to be the next large market for expansion of its global products and services.
Media Contact:
Doug Harris
Chief Financial Officer
Braingrid Limited
416-480-2488
ir@braingrid.io
www.braingrid.io
About Braingrid
Braingrid Limited (www.braingrid.io) is a global technology company committed to the best long term interests of growers in the Precision Agriculture industry. The company provides valuable cultivation analytics by capturing real-time environmental data using our technology platform. Braingrid is committed to increase grower's revenues by improving yield and reducing grow risks such as pathogens. Braingrid also provides the cannabis industry with powerful technology solutions together with its integration partners in quality management, laboratory testing, pathogen detection and energy conservation.
FORWARD-LOOKING INFORMATION
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of Braingrid. Information and statements which are not purely historical fact are forward-looking statements. Such statements include statements regarding (i) the development of new reports under the BDI initiative, (ii) the planned development of the relationships with the Company's integration partners, (iii) the review of additional sources of financing and (iv) the potential for recovery of damages relating to the R2G relationship. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of Braingrid to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although Braingrid believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, Braingrid assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
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