Relevium Signs JV for E-Commerce AI With Blockchain Technology Integration, Proposes Initial Coin Offering
MONTREAL, QUEBEC–(Marketwired – Jan. 11, 2018) - Relevium Technologies Inc. (TSX VENTURE:RLV)(FRANKFURT:6BX) (the “Company” or “Relevium“), is pleased to announce the signing of a joint venture agreement (“JV”) with Quantomic LLC (the “Parties“) for Tagspire, a virtual retail and visual commerce platform.
- Tagspire uses AI and Machine Learning to auto-tag products to retailers in photos and videos
- Product database of over 35 million and growing
- Tagspire is fully operational on iOS and Android
- JV consummated on a proposed Initial Coin Offering (ICO) or equity financing of USD 20MM+
- Relevium will integrate the platform to the blockchain as a network utility token
Note to reader: There are multiple hyperlinks in this news release. If the reader cannot see the hyperlinks, please consult http://releviumtechnologies.com/press-releases/ where a version of the release with hyperlinks is available.
Aurelio Useche, CEO of Relevium Technologies stated: “Initially announced on September 7, 2017, Relevium has been looking at how to integrate AI and machine learning in the e-commerce space.” Mr. Useche continued: “The team quickly found out that the biggest hurdle was to have enough data in order to gain insight on consumer behaviour. Tagspire solves this issue as all user data is generated in the Tagspire ecosystem and then pushed out to platforms such as Instagram, YouTube, Facebook, Twitter, Pinterest, etc. The team at Relevium believes that the Tagspire platform is a perfect candidate for blockchain integration as a network token and an ICO.”
Karim Hijazi, President and Founder of Quantomic LLC stated: “I created Tagspire when witnessing the rise of visual platforms like Pinterest, Instagram and Snapchat; where immense amounts of time and creativity were being spent producing content. However, effective monetization of that content was still nascent.”
Mr. Hijazi went on to state: “With Tagspire, the goal was to create a truly immersive, fun and social marketplace platform that would appeal not only to entrepreneurial consumers, but also to influencers and brands alike. I believe that user-generated content leveraged appropriately and effectively will be the next big disruptor in retail; not to mention the unparalleled intelligence that could be gleaned from it.”
What is Tagspire?
Tagspire is a virtual retail and visual commerce platform, the purpose of which is to deliver high fidelity marketing intelligence to brands, harvested from user-generated content. Presently, Tagspire can be used on iOS, Android and as a WebApp and browser extension. When images are captured and pushed to social media, users earn a commission on any sales made from items/objects that are tagged in their photos or videos.
Tagspire is a sales engine inside an Instagram-like environment capitalizing on discovery and the “impulse purchase” facilitated by a familiar face. Auto-tagging functionalities are currently being deployed and the artificial intelligence engine – using Google TensorFlow – can recognize over 35,000,000 retail products ranging from apparel to electronics and cosmetics. The Tagspire technology is in constant evolution and can already auto-generate tags on static images as well as in video clips. Tagspire currently connects to such retailers as: Best Buy, Avon, Target and American Eagle. A full list of currently connect retails can be found at tagspire.com/retailers.
To illustrate the power of the technology, click here to watch a short video illustrating the Tagspire mobile app. The technology identifies an Apple iPhone in a photo taken by the app, and then auto-tags the product in the image, linking it to the apple.com purchase page. Using the power of Google TensorFlow machine learning, the Tagspire neural network has been trained to identify an “Apple iPhone Red Product” and then link it automatically, in this case, to the buy page on apple.com. The final post is embedded here (make sure to roll your mouse over, or tap the tag icon to see a preview of the buy page).
Initial Purpose and Principal Terms of Joint Venture
The Parties will combine resources to raise capital through either an ICO or initial token offering on an existing blockchain or through the capital markets (the “Offering”) for gross proceed of no less than USD$20 million. If the Offering is structured as an ICO, it is expected that it will be completed through a newly created entity (“NEWCO”) using the current best practices for coin and token offerings. If the Offering is structured as an equity or debt financing through traditional capital raising mechanisms (for example investment dealers), it will be completed through Relevium Technologies. Management of Relevium Technologies is working towards the structure of the Offering and will disclose terms as they become finalized.
A USD$8 Million portion of the proceeds of the Offering will be paid to Quantomic LLC allowing Relevium to secure a 51% ownership stake of NEWCO. The balance of no less than USD$12 Million, will be used to fund NEWCO and the continued development of the Tagspire platform and ecosystem, including blockchain integration, data set acquisitions, AI programming and training, server and software costs, marketing and human resources. It is anticipated that the initial management team of NEWCO will be comprised of the current management team from Quantomic LLC and complimented by human and intellectual capital from Relevium Technologies. Upon consummation of the JV, NEWCO will operate as a subsidiary to Relevium Technologies and the Board of NEWCO will be represented by both JV Parties.
The Parties also agree to cooperate and contribute the following:
(i) Relevium shall contribute all the costs, know-how and resources necessary to ensure a successful token offering or financing to fund the Offering, including preliminary due diligence of the IP, definition of the project, attributes of the proposed token, preparation of the white paper, legal and accounting fees, compliance, marketing and overall management of the financing of the JV.
(ii) Quantomic LLC shall contribute the intellectual assets, licenses, trademarks, patents, proprietary information, copyright and content necessary to demonstrate the current and prospective value of the IP.
While the Parties have agreed to use their commercially reasonable efforts to complete the Offering, there can be no guarantee that the Offering and JV will be completed as currently contemplated by the Parties or at all.
Right of First Refusal
Quantomic LLC acknowledges that Relevium will be incurring substantial costs to finalize the terms of the JV and the Offering. As partial consideration of the JV, Quantomic LLC agrees for a period of 60 days not to enter into any new negotiations or discussions with any third party in respect of the sale of all or any part of its shares, business or assets. However, Quantomic LLC may continue existing and ongoing discussions with third parties regarding the potential acquisition of its intellectual property. Prior to accepting any bona fide offer, Quantomic LLC must give notice to Relevium as the Company has a right of first refusal on any such offers.
Pursuant to regulatory guidelines, further financial details and related fees regarding the joint venture will be disclosed in connection with the closing of the transaction.
About Relevium Technologies
Relevium is a TSXV-listed company focused on growth through the acquisition of businesses, products and/or technologies with a focus on e-commerce in the growing health and wellness sector. Relevium Technologies Inc. also holds patented intellectual property for the use of static magnetic fields for application on wearable devices.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, including the timing and completion of the proposed acquisitions, are forward-looking statements and contain forward-looking information. Generally, forward- looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including the assumptions that the Company will obtain stock exchange approval of the Offering, the proposed acquisition will occur as anticipated, that the Company will raise sufficient funds, and that the Company will obtain all requisite approvals of the acquisition. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the risk that the proposed acquisitions may not occur as planned; the timing and receipt of requisite approvals and failure to raise sufficient funds under the Offering. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that is incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
Aurelio Useche, President and CEO
+1 (514) 562-1374