Zedcor Inc. Signs 21-Month, $1.8 Million Agreement with a Construction Partnership to Provide Hybrid MobileyeZ Security Towers
Calgary, Alberta--(Newsfile Corp. - February 17, 2021) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor"), a leading provider of strategic security solutions and remote video surveillance systems, is pleased to announce that it has entered into a rental and service agreement with a large engineering and construction joint venture (the "JV"). Zedcor, through its wholly-owned operating subsidiary, Zedcor Security Solutions Corp., will provide the JV with the rental of up to 15 of Zedcor's proprietary Hybrid MobileyeZ security towers featuring multiple activity detection sensors for a period of 21 months commencing on April 1, 2021. This contract is expected to contribute up to $1.8 million1 of revenue over the term of the contract. This new contract builds on the positive momentum announced previously by the Company (January 19, 2021) to deploy 100 Hybrid MobileyeZ security towers over a two-year period.
Zedcor's innovative Hybrid MobileyeZ security towers will provide 24/7 live security monitoring on the JV's construction site in the Lower Mainland of British Columbia. The Company will position its Hybrid MobileyeZ security towers at strategic, higher risk locations along the project site. Video, along with activity alerts, will be streamed in real-time using Zedcor's state-of-the-art video management software to the Company's centralized command center and will be monitored by Zedcor's trained security personnel without interruption. Alerts are met with Zedcor's Live-Verified Response and if necessary, on-site security personnel or law enforcement can be dispatched. Deploying the Company's unique MobileyeZ solutions allows the contractor to mitigate risk through heightened visibility into potential security threats across a broad geographic area, while also controlling the cost of personnel and fuel, and limiting the potential for safety incidents.
Todd Ziniuk, President and CEO of Zedcor commented, "We are pleased to be awarded this contract and are excited to expand our service offering to the Vancouver area where significant need for technology-based security solutions exists in the construction industry. This contract demonstrates the potential of using MobileyeZ across a broad range of industries and for projects of varying size. Whether our customers need one MobileyeZ Security Tower or 100, whether they need fixed-site security or highly trained security guards, the Zedcor team is ready and able to fulfill our mission of providing high-value solutions that can solve tomorrow's problems today."
The Company will draw from its expanded fleet of 150 Hybrid MobileyeZ security towers to fulfill the contract. Currently the Hybrid MobileyeZ security towers are 95% utilized and this contract increases the total committed Hybrid MobileyeZ under contract to 115. Should additional, high-quality opportunities to deploy capital and expand its fleet of towers arise, the Company will assess the return profile of expansion and seek to allocate capital to the projects expected to generate the highest rates of return for shareholders.
Forward-Looking Statements and Information
Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, the term, expected revenues and margins achieved from the contracts for the Company's Hybrid MobileyeZ security towers, the expansion of Zedcor's Security and Surveillance business and the allocation of capital to projects expected to generate the highest rates of return for shareholders. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements or information because the Company can give no assurance that such statements or information will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties, including Zedcor's ability to attract and retain customers, current forecasts, margins, expansion opportunities and the utilization of its fleet of Hybrid MobileyeZ security towers and availability of capital. Although management of the Company believes these expectations and assumptions reflected in these forward-looking statements or information to be reasonable, forward-looking statements or information involves risks and uncertainties and other factors and there can be no assurance that any forward-looking statements or information will be proved to be correct, and actual results will differ materially from those anticipated in such statements or information. Additional information regarding some of these risks, uncertainties and other factors may be found in the Company's management's discussion and analysis for the three months ended September 30, 2020, and other documents available on the Company's profile at www.sedar.com. For this purpose, any statements or information contained herein that are not statements or information of historical fact may be deemed to be forward-looking statements or information and readers should not place undue reliance on such forward-looking statements or information. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless the Company is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Zedcor's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
About Zedcor Inc.
Zedcor Inc. is the parent company of Zedcor Security Solutions Corp., and operates two business segments: Security & Surveillance and Rentals. Zedcor is focused on generating value for shareholders through the profitable provision of security and surveillance services, and the rental of surface equipment and accommodations in Western Canada. The Company trades on the TSX Venture Exchange under the symbol "ZDC".
For further information contact:
President & Chief Executive Officer
P: (403) 930-5432
Chief Financial Officer
P: (403) 930-5435
Neither 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.
 Contract values cited herein are based solely on top-line revenue. For the three months ended September 30, 2020, Zedcor's margins from the Security and Surveillance segment averaged 59%.
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