Montreal, Quebec--(Newsfile Corp. - March 26, 2020) - GOLO Mobile Inc. (TSXV: GOLO) ("GOLO" or "the Company"), today announced that due to the COVID-19 pandemic, GOLO has suspended daily delivery and pick-up operations (which are focused on commercial office towers, residential buildings and other high population density areas) until further notice effective 10:00 p.m. ET Thursday, March 26, 2020.
"This was a difficult, yet necessary decision and one that we did not enter into lightly," said Peter Mazoff, President and CEO. "The pandemic is an ever-evolving situation and while we are continuing to monitor the latest developments from government bodies and public health officials, we have decided that suspending daily delivery and pick-up operations is the best course of action until public spaces and businesses re-open."
GOLO provides time saving convenience for daily tasks to individuals in high-population density areas. For the past several months, GOLO has successfully transitioned its business toward focusing on a last mile delivery solution for properties in areas with a high population density, such as, office towers, residential buildings, corporate campuses, hospitals, airports and others in a "concierge-like" manner.
GOLO continues to prudently manage its cash position in light of the COVID-19 pandemic. The Company has begun implementing cost cutting initiatives to preserve cash including reductions in executive and senior leadership compensation, reductions related to improving operational efficiencies and temporary staff layoffs.
On February 25, 2020, GOLO announced that it entered into a definitive agreement to acquire all of the issued and outstanding shares of eServus.com Online Services Ltd. ("eServus"), which offers lifestyle services to property managers with community and building portals, such as discounted sports, concerts and entertainment tickets as well as hotel and car rental services. GOLO is continuing to advance the process with eServus to achieve the satisfaction of outstanding closing conditions in order to complete the transaction. Upon closing, the combined entity is expected to be the only company of its kind to offer last mile delivery and tenant engagement in one platform to property managers.
"GOLO has a strong and supportive shareholder base and we appreciate their support during this difficult time," continued Mr. Mazoff. "We have a solid foundation and we believe the decisions made today will help preserve long-term shareholder value."
Forward Looking Information
Certain information included in this news release contains forward-looking statements within the meaning of applicable securities laws including, but not limited to, with respect to the suspension of GOLO's daily delivery and pick-up operations and the implementation of cost cutting initiatives as a result of the COVID-19 pandemic and the completion and anticipated benefits of the Transaction. The words "may," "will," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," "forecast," "objective" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. By their very nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by the Company.
Forward-looking statements are subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include, but are not limited to: the COVID-19 outbreak and the responses of governments and the public to the outbreak (including requirements to work from home and mandated government shut downs of most offices); general global economic, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; relationships with employees, customers, business partners and competitors; and diversion of management time on the eServus transaction (the "Transaction"). Given the unprecedented nature of the COVID-19 pandemic, there can be no assurances regarding the duration of the suspension of GOLO's daily delivery and pick-up operations or the impacts of the pandemic on GOLO's business, operations or performance. There are also risks to successfully completing the Transaction, including failure to satisfy the closing conditions, the failure to obtain any required third party consents and approvals including the approval of the TSX Venture Exchange (or to do so in a timely manner) and the continued adverse risks presented by the COVID-19 outbreak. The anticipated timeline for completion of the Transaction may change for a number of reasons, including the inability to secure necessary third-party consents and approvals in the time assumed or the need for additional time to satisfy the conditions to the completion of the Transaction. As a result of the foregoing, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release.
The Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable Canadian securities law. When reviewing the Company's forward-looking statements, readers should carefully consider the foregoing factors and other uncertainties and potential events. A comprehensive discussion of other risks that impact the Company can also be found in GOLO's public filings which are available under GOLO's profile on SEDAR at www.sedar.com.
About GOLO Mobile Inc.
GOLO provides time saving convenience for daily tasks to individuals in high-population density areas. The Company's focus is on office buildings, residential towers, corporate campuses, hospitals, airports and other highly populated areas. GOLO is publicly traded on the TSXV and its controlling shareholder is controlled indirectly by affiliates of Blackstone Group L.P. and the funds comprising CVC Capital Partners VI.
For Further Information:
Peter Mazoff, Chief Executive Officer
(514) 670-1228
ir@goloir.com
Nicole Piasentini
(416) 848-1460
npiasentini@national.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) is responsible for the adequacy or accuracy of this press release.
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