Binovi Technologies Q3 2020 Revenue Up, Increasing Top-Line and Gross Margin Results
[Toronto] Binovi Technologies Corp. (Binovi) (TSX-V:VISN I OTCQB:BNVIF | GR:2EYA) a leader in neuro-vision performance technology, reports results for the Company’s fiscal third quarter, ended November 30, 2020. The Company’s net sales results continue to be affected by the global health crisis. Increased demand for products across multiple categories led to an increase in top-line and gross margin results.
“Strategically positioned within telehealth, we believe the coming quarters will be pivotal in establishing our reputation and status as a competitor within this rapidly growing marketplace. While we are seeing strong growth across the business, it is important to recognize that we are making big investments in our people and infrastructure that are essential to support the significant growth that lies ahead. This includes big investments in our telehealth SaaS, our provider network, and personnel are critical as we scale the business.”Terry Booth, Executive Chairman
Q3 2020 Financial Highlights
- Revenue increased by more than 100% in Q3 2020, in comparison to Q3 2019.
- A combined $3.12 Million raised through private placement subscriptions with strategic investors.
- Since the launch of Binovi, more than 800 organizations have been registered and have used the platform for vision therapy and/or sports vision performance. These organizations have created nearly 31,000 users, together completing more than 400,000 active sessions centered around the Binovi Library list of activities, custom activities created by our member organizations.
- Advanced the development of the company’s web-based telehealth SaaS, Binovi Connect. The beta launch of the platform is planned for Q1 2021.
- Product marketing continues to grow brand awareness and promote sales, with an increase of 300% in website traffic, with improvements in direct media marketing and general top-of-mind awareness.
- Finalized the acquisition and integration of the VIMA Rev Strobe Lenses under the Binovi umbrella has provided Binovi with an additional toolset to expand its offering. Developed by Nike’s (NYSE: NKE) former Global Director of Vision Science and his team of sport science experts, the VIMA Rev Strobe Lenses are an integrated strobe training system that stimulates neuro-cognition through vision training. The lightweight, durable eyewear has been refined over three decades. VIMA’s technology is being integrated into the Company’s Binovi Product Platform.
- Announced the strategic expansion into pre-K-12 Education. The expansion is in stride with the Company’s “Global and Noble” initiatives directed towards accelerating the development of reading fundamentals. Cognitive literacy skills for students of all abilities from pre-K to grade 3, with continued reading comprehension activities to grade 12, will be advanced through technology-driven vision training protocols.
- Established the Binovi Connect App, a SAAS based solution, designed for vision optimization which is supported by specialized expert knowledge, unique data insights and supporting hardware to deliver customized, one-on-one cognitive training and learning protocols ideal for K-12 Students, Vision Care Specialists, and Sports Performance testing and training.
Adam Cegielski, CEO
“Q3 was a quarter of outperformance across our key financial metrics, as 2020 continued to be a transformational year for Binovi Technologies. Most of our growth is due to the fulfillment of the company’s acquisition strategy, remote education and client care products, and the anticipated launch of our direct-to-consumer telehealth SaaS. This has generated strong organic growth and an increasing subscription. The close of our recent private placement tranches will enable us to scale many of our planned campaigns where we have proven and very attractive unit economics.“
Q3 2020 Business Highlights
- Binovi Appoints Dr. Michael Gallaway to the Binovi Scientific Advisory Board
- Babe Ruth League Partners With Binovi Technologies in Order to Provide Sport Vision Training to its Youth Athletes
- Binovi Technologies to Acquire VERA (Visual Efficiency RAting) for School Vision Screening
- Industry Leader, Binovi Technologies, Announces Upcoming Release of Binovi Connect App
- Binovi Technologies Executive Chairman, Terry Booth, Provides Corporate Update
- Binovi Closes Private Placement of $2.05 Million
- Binovi Appoints Dr. Susan Barry to the Binovi Scientific Advisory Board
- Binovi Technologies Appoints Olympic & World Champion Jennifer Botterill to Binovi Performance Advisory Board
- Binovi Closes Private Placement of $1.7 Million
- Binovi Congratulates the Dallas Stars on Their National Hockey League (NHL) Western Conference Championship
- White House Fellow (1990-1991), Eric Phillips, Joins Binovi Technologies as Strategic Advisor
The Company is focused on revolutionizing the vision training industry by leveraging technology to digitize its delivery to provide both better access to care, through telehealth, which will lead to better health outcomes. Binovi’s growth will be largely driven by its network of practitioners, SaaS solution and enterprise partnerships. The company will continue to focus on delivering meaningful shareholder value by executing on its growth strategy through accretive acquisitions, strategic capital allocation and continuing to achieve organic growth across all divisions.
The Company further announces that, subject to receiving the approval of the TSX Venture Exchange (the “Exchange“), it intends to amend (the “Amendment“) the exercise price of 7,843,137 common share purchase warrants originally issued by the Company pursuant to the closing of the equity offering on June 9, 2020 (the “Original Warrants“) exercisable into an equal amount of common shares in the capital of the Company (“Common Shares“) at an exercise price of $0.25 (the “Warrants”) to an exercise price of $0.155 (the “New Exercise Price“).
Each Original Warrant entitled the holder to purchase one common share of the company at a price of $0.25 per common share. A total of 7,843,137 Original Warrants remain outstanding as of this date and are scheduled to expire on June 8, 2022.
The Corporation is seeking the approval of the TSX Venture Exchange to reduce the exercise price of the Amended Warrants to $0.155 per share or such other price as may be acceptable to the TSX Venture Exchange. As per Exchange Policy 4.1, the Amendment will require the incorporation of an accelerated expiry provision such that the remaining exercise period of the Warrants will be reduced to 30 days if, for any 10 consecutive trading days during the unexpired term of such of the Warrants, the closing price of the Common Shares exceeds the New Exercise Price by 25% or more (which would be a trading price of $0.1875 per Common Share or higher), with the 30-day expiry period commencing on the day the Company either: (i) disseminates a press release or (ii) sends a written notice to the holders of the Warrants, advising of the commencement of the exercise period”.
Insiders of the Company hold 1,435,300 or approximately 18.3% of the Warrants issued pursuant to the June 9, 2020 private placement.
Certain of the Warrants are held by parties who are considered “related parties” of the Company. Therefore, the amendment of these Warrants constitutes a “related party transaction” as contemplated by Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions and TSX Venture Exchange Policy 5.9 – Protection of Minority Shareholders in Special Transactions. However, since the amendment applies to all of the warrants equally on a per warrant basis, and no related party will receive a collateral benefit in connection with the amendment, the restrictions imposed under Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9 do not apply to the amendment.