Latest news with #MobileyeZTM
Yahoo
31-05-2025
- Business
- Yahoo
Zedcor Inc. Announces Restricted Share Unit Grant
Calgary, Alberta--(Newsfile Corp. - May 30, 2025) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") announces that on May 29, 2025, 2,935,000 Restricted Share Units (RSUs) were granted to employees, directors and officers of the Company pursuant to the Company's fixed 10% RSU/DSU plan and will expire three years from the date of grant. The RSUs will vest as to one third thereof on each of the first, second and third anniversaries of the date of grant. About Zedcor Inc. Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZTM security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established MobileyeZTM platform in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest and West Coast with locations throughout Texas and in Denver, Colorado, Phoenix, Arizona and Las Vegas, Nevada. For further information contact: Todd ZiniukChief Executive OfficerP: (403) 930-5430E: tziniuk@ Amin LadhaChief Financial OfficerP: (403) 930-5430E: aladha@ 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. To view the source version of this press release, please visit
Yahoo
22-05-2025
- Business
- Yahoo
Zedcor Inc. Reports Record Quarterly Results, Including $11.5 million in Revenue and $4.1 million in Adjusted EBITDA for the First Quarter 2025
Calgary, Alberta--(Newsfile Corp. - May 21, 2025) - Zedcor Inc. (TSXV: ZDC) ("Zedcor" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2025. Highlights include: Record quarterly revenue of $11.5 million, representing an increase of 87% year-over-year and 11% quarter-over-quarter Record quarterly Adjusted EBITDA of $4.1 million, representing an increase of 116% year-over-year Adjusted EBITDA margin was 36%, despite significant expansion costs out of the U.S., driven by strong contribution margins in Canada and increased operational efficiency from its AI at-the-edge cameras Deployed 229 MobileyeZTM security towers during the three months ended March 31, 2025; these security towers were deployed throughout North America, with a focus on US expansion, and realized total fleet utilization rates above 90% for the quarter U.S. revenue was 29% of total revenue for Q1 2025 Manufacturing monthly run rate eclipsed 100 units with anticipated growth to 120 units in Q2 2025 The Company expects to be largely insulated from tariffs as manufacturing is based in Houston, Texas and camera costs have been locked in for 2025, while there have been no signs of demand waning, despite the geopolitical risks in the market Zedcor generated revenue of $11.5 million for the three months ended March 31, 2025, and Adjusted EBITDA of $4.1 million. Revenue and Adjusted EBITDA generated in the quarter were both record highs for the Company. Furthermore, the Company successfully continued its customer diversification and revenue growth initiatives during the quarter, which was reflected in the revenue and Adjusted EBITDA results. Zedcor generated record daily revenue from its fleet of MobileyeZTM security towers while successfully deploying 229 new MobileyeZTM towers throughout North America, with growth focused in Texas. Notably, fleet-wide MobileyeZTM utilization rate exceeded 90% for the quarter. The Company has won a number of new customers in all verticals and continues to see growing demand in its residential home construction services. The U.S. accounted for 29% of the Company's first quarter revenue. The utilization rate for the fleet of security towers in the U.S. is near 100% capacity and the Company is starting to build a backlog of demand. In addition, the Company has continued to establish its service offering throughout the state of Texas and into a number of other cities across the southern USA. In Canada, Zedcor experienced revenue growth and strong utilization rates during the quarter. While January sales were slower than anticipated due to inclement weather in Western Canada and permitting delays in Eastern Canada, demand ramped up quickly and subsequent to the quarter, the Company has allocated more units than budgeted to meet demand in Canada. Todd Ziniuk, President and CEO of Zedcor, commented: "We are extremely pleased with the pace of our growth in the U.S. and encouraged by the demand we are experiencing in Canada which has exceeded our internal estimates. We continue to expand our sales team and platform to further accelerate unit sales and are seeing significant contributions in both Canada and the U.S. We are currently able to service all of Texas and the Southern US, Colorado and the Midwest U.S., and have expanded into Arizona, and Nevada. We remain focused on providing turnkey, innovative security solutions to our customers with industry leading service levels. Our equity financing which we closed in Q1 2025 and expanded debt facilities which we secured in December 2024, allow us to increase production of our security towers in anticipation of further acceleration of sales throughout 2025. We remain committed to our 1,200 - 1,400 tower manufacturing target for 2025 and are on pace to achieve this targeted range. Also, we continue to invest in growing our enterprise customer base throughout North America and are getting traction with some of the largest Corporations in the U.S. While tariffs are not an immediate concern impacting our results with U.S. manufacturing in Houston, we are exploring options to further control our supply chain and reduce capital costs per tower." FINANCIAL & OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2025: Three months ended March 31 Three months ended December 31(in $000s, except per share amounts)2025 2024 2024Revenue11,476 6,134 10,334EBITDA13,477 1,667 2,934Adjusted EBITDA1,24,109 1,898 4,002Adjusted EBIT21,060 76 884Net (loss) income 622 (470 )380Net (loss) income per share Basic0.01 (0.01 )0.01 Diluted0.01 (0.01 )0.01 1 See Financial Measures Reconciliations below Zedcor recorded $11.5 million of revenue for the three months ended March 31, 2025. This compares to $6.1 million of revenue for the three months ended March 31, 2024. The revenue increase of 87% year over year was due to: the execution of the strategic initiative for US expansion; diversification of our customer base and attracting new customers across the US and Canada; and meeting the strong customer demand through the production and deployment of MobileyeZTM towers. This growth in revenue was offset by lower security personnel revenue, camera sales, and other service revenue. EBITDA increased from $1.9 million for the months ended March 31, 2024 to $4.1 million for the three months ended March 31, 2025. Quarter over quarter, the Company's total revenue was up $1.1 million or 11% and EBITDA was up $0.6 million or 19%. Revenue increased quarter over quarter as a result of a larger fleet of security towers, higher daily rates in Canada, and revenue growth in the US and Canada through customer acquisition and growing revenues from existing customers in both regions. Adjusted EBITDA was $4.1 million for the three months ended March 31, 2025, compared to $1.9 million for the three months ended March 31, 2024. This was an increase of $2.2 million or 116%. Adjusted EBITDA increased year over year due to higher revenues and operating cost controls, offset by the increase in administrative and sales staff costs. The Company's security and surveillance services continued to see strong demand and growth in revenues for the three months ended March 31, 2025 due largely to increased customer demand of its larger fleet of MobileyeZ security towers and expanded US presence. Utilization reached 95% for the Company's Canada fleet and remained above 90% for the Company's US fleet throughout Q1 2025. Zedcor exited the period with 1,566 MobileyeZTM security towers which was an increase of 229 when compared to December 31, 2024 and an increase of 696 when compared to March 31, 2024. Of the 1,566 units, 564, or 36%, are located in the US. The Company remains on track to meet its annual fleet increase target of 1,200 to 1,400 units. Financial and operational highlights for the three months ended March 31, 2025 include: For the three months ended March 31, 2025 net income before tax was $0.6 million compared to a net loss before tax of ($0.5) million for the three months ended March 31, 2024. The increase in net income year over year is directly attributable to: 1) Growth in Canadian and US sales attributable to new customers and growing revenue from existing customers; 2) strong margins in Canada as a result of general and administrative expenses being established and the operational efficiencies related to our AI at the edge cameras being implemented across the fleet; and 3) operations in the US continued to see growth and strong demand in our areas of focus. On February 5, 2025, the Company closed a equity financing for $25.3 million on a bought deal share financing at a price of $3.35 per share. The Company issued 7.6 million common shares. This funding, along with the increased banking facilities secured in Q4 2024 allows the Company to expedite its growth in the US. Expansion into strategic US markets including all major metros in Texas (Houston, Dallas, San Antonio, Austin and Midland), Denver, Colorado, Phoenix, Arizona and Las Vegas, Nevada. The Company has seen demand for its security services outside of Texas and its locations that are established for less than a year are seeing rapid growth. Significant customer wins in the residential home building segment of the Company's customer base across Texas, in Denver, in Las Vegas and across Canada as well. We anticipate demand in this vertical to continue to increase as we establish our footprint in the US. Diversification away from the Company's core pipeline construction customers. As the Company increases its fleet of MobileyeZTM and expands geographically, our risk related to customer concentration has decreased. Zedcor's services are customer and industry agonistic and we continued to see that in 2025 as we were able to diversify our customer base across the construction industry and into retail security. Continued traction across Canada with the Company's established base of customers as well as expansion with new customers. The Company's intention to diversify its geographical footprint and grow its customer base is yielding results and we are continuing to see strong demand for the Company's service offering across this region. On track US expansion. Zedcor exited Q1 2025 with 564 MobileyeZTM located in the US, expanded the base of operations with the ability to serve customers across Texas and Colorado, and continued positive business development with both existing and new US customers. During Q1 the Company has also established operations in Phoenix, Arizona, Las Vegas, Nevada and is able to service customers on the US west coast. The Company continued to develop and expand its manufacturing capabilities. Zedcor has manufactured over 225 of its Solar MobileyeZTM Security Towers in Q1 2025 and continues to ramp up the production capacity out of Houston, Texas facility to meet the customer demand in the US. The Company is actively managing its component suppliers and supply chains, while finding efficiencies in order to streamline manufacturing. As at the end of Q1 2025, the Company has the ability to manufacture 20 - 25 security towers weekly. The Company assessing the impact of tariffs. Cameras for its 2025 fleet expansion were ordered late in 2024 and the supplier does not intend to adjust prices, while approximately 35% of steel components were also procured prior to tariffs being imposed. Raw steel components comprise less than 10% of total capital costs of each MobileyeZTM Security Tower. SELECTED QUARTERLY FINANCIAL INFORMATION (Unaudited - in $000s)Mar312025 Dec312024 Sept302024 June302024 Mar312024 Dec312023 Sept302023 June302023Revenue 11,476 10,334 9,152 7,372 6,134 5,799 6,431 6,216Net income (loss) 622 380 310 1,409 (470 )(860 )288 2,472Adjusted EBITDA¹4,109 4,002 3,409 2,695 1,898 1,401 2,285 1,824Adjusted EBITDA per share - basic¹0.04 0.04 0.04 0.03 0.03 0.02 0.03 0.02Net income (loss) per share Basic0.01 0.01 0.00 0.02 (0.01 )(0.00 )0.00 0.03 Diluted0.01 0.01 0.00 0.02 (0.01 )(0.01 )0.00 0.03Adjusted free cash flow¹1,546 3,305 3,342 1,016 458 482 4,664 968 1 See Financial Measures Reconciliations below LIQUIDITY AND CAPITAL RESOURCES Three months ended March 31(in $000s)2025 2024 $ Change % ChangeCash flow from operating activities1,664 658 1,006 153%Cash flow used in investing activities(9,065 )(2,002 )(7,063 )353%Cash flow from financing activities22,025 1,314 20,711 1,576% The following table presents a summary of working capital information: As at March 31(in $000s)2025 2024 $ Change % ChangeCurrent assets31,270 7,684 23,586 307%Current liabilities *16,285 9,475 6,810 72%Working capital14,985 (1,791 )16,777 937% *Includes $4.1 million of debt and $3.3. million of lease liabilities in 2025 and $4.1 million of debt and $2.2 million of lease liabilities in 2024. The primary uses of funds are operating expenses, growth capital spending, interest and principal payments on debt facilities. The Company has a variety of sources available to meet these liquidity needs, including cash generated from operations. In general, the Company funds its operations with cash flow generated from operations, while growth capital and acquisitions are typically funded by issuing new equity or debt. Principal Credit Facility Interest rate Final maturity Facility maximum Outstanding as at March 31, 2025 Outstanding as at December 31, 2024 Non-Revolving Reducing Term Loan Prime + 1.50% Dec 2027 20,000 18,720 19,732 Revolving Operating Loan Prime + 1.50% Dec 2027 10,000 - - Equipment Financing Various Various N/A 620 390 19,340 20,122 Current portion(4,136) (4,068) Long term debt15,204 16,054 On December 18, 2024, the Company entered into a Commitment Letter with ATB Financial which provided the Company with the following: A $10.0 million revolving operating loan. The Company is able to draw on this facility for working capital, capital expenditures, and general corporate purposes. The Company may borrow, repay, reborrow, and convert between types of borrowings. This is due and payable in full on the maturity date of December 17, 2027. A $20.0 million non-revolving reducing term loan, available in two advances, (i) initial advance to pay out in full the indebtedness of the existing Term Loan and (ii) an amount not exceeding the remainder of the maximum amount shall be used for working capital, capital expenditures, and general corporate purposes. This loan is amortized over 60 months with any unpaid balance due and payable on December 17, 2027. Commencing on January 31, 2025, and on the last Business Day of each month thereafter, the Company shall make equal principal and interest repayments. The interest is payable at Prime plus the applicable margin. The applicable margin means, with respect to each facility, the percentage per annum applicable to the Net Funded Debt to EBITDA ratio. As at March 31, 2025 the Applicable Margin was 1.50%. The agreement has the following quarterly financial covenant requirements: A Net Funded Debt to EBITDA ratio of no more than 3.50:1.00, as at the Closing Date or as at the end of any fiscal quarter thereafter up to and including June 30, 2025; or A Net Funded Debt to EBITDA ratio of no more than 3.00:1.00 as at the end of fiscal quarter ending September 30, 2025 or any Fiscal Quarter thereafter; and, A Fixed Charge Coverage Ratio of no less than 1.15:1.00 as at the Closing Date or as at the end of any fiscal quarter thereafter. The credit facilities were secured with a first charge over the Company's current and after acquired equipment, a general security agreement, a subordination and postponement agreement with a director of the Company with respect to a note payable, and other standard non-financial security. As at March 31, 2025, the Company is in compliance with its financial covenant requirements. The Company may also enter into specific financing agreements with certain vendors for specific pieces of equipment. These financing agreements are entered into at the time of purchase and granted by various third parties based on the Company's financial condition at the time. They are secured with specific equipment being financed and terms and interest rates are decided at the time of application. As at March 31, 2025 the Company had $390 outstanding with respect to these specific financing agreements. As at March 31, 2025 the Company also have a letter of credit facility of $240 (as at December 31, 2023 - $240). The facility is unused as at March 31, 2025. CREDIT RISK The Company extends credit to customers, primarily comprised of construction companies, energy companies and pipeline construction companies, in the normal course of its operations. Historically, bad debt expenses have been limited to specific customer circumstances. However, the volatility in economic activity may result in higher collection risk on trade receivables. The Company has reviewed its outstanding accounts receivable as at March 31, 2025 and believes the expected loss provision is sufficient. OUTLOOK Zedcor continues to execute its long-term strategy of growing its technology enabled security services across North America. The Company continues to effectively use a mix of cash flow, debt and the proceeds from its equity financing to build additional MobileyeZTM security towers to provide surveillance services to our expanding customer base. The Company was able to effectively redeploy equipment to new customers throughout the Company's operating regions and grow US revenues to $3.4 million in Q1 2025. The Company has also grown its salesforce across Canada in order to obtain contracts for its MobileyeZTM and continue to expand its service offering to different industries. Priorities that the Company intends to focus on for the remainder for 2025 include: Expanding operations in the United States and continuing to grow revenues in Canada. Due to significant spending on infrastructure in North America, along with increased theft and vandalism, the Company is continuing to see strong demand for its products in both countries. Zedcor's innovative products, coupled with the Company's commitment to customer service, are perfectly situated to disrupt the traditional security market. With the strong demand that Zedcor is seeing for its security towers, the Company continues to further take control of its supply chain and remove bottlenecks for its security towers by manufacturing and assembling more of the components of its towers in house. This will allow us to actively manage demand and, over time, reduce our capital costs. Building new, innovative products based on customer demand. As the Company has obtained customers in different industry verticals, it has seen an increasing number of use cases for its security solutions coupled with Zedcor's 24/7 Live, VerifiedTM video monitoring. This includes a need for additional AI-based technology that is actively monitored as well as a mobile security product with a smaller footprint. The Company intends to generate customer and shareholder value and positive earnings per share. By effectively managing its growth, executing on the above noted strategies and increasing its capital markets presence, Zedcor will be able to continue to generate positive earnings per share, grow its shareholder base and increase share price. NON-IFRS MEASURES RECONCILIATION Zedcor Inc. uses certain measures in this MD&A which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS"). These measures which are derived from information reported in the consolidated statements of operations and comprehensive income may not be comparable to similar measures presented by other reporting issuers. These measures have been described and presented in this MD&A in order to provide shareholders and potential investors with additional information regarding the Company. Investors are cautioned that EBITDA, adjusted EBITDA, adjusted EBITDA per share, adjusted EBIT and adjusted free cash flow are not acceptable alternatives to net income or net income per share, a measurement of liquidity, or comparable measures as determined in accordance with IFRS. EBITDA and Adjusted EBITDA EBITDA refers to net income before finance costs, income taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with foreign exchange gains or losses, gains and losses on sale of equipment and stock based compensation. These measures do not have a standardized definition prescribed by IFRS and therefore may not be comparable to similar captioned terms presented by other issuers. Management believes that EBITDA and Adjusted EBITDA are useful measures of performance as they eliminate non-recurring items and the impact of finance and tax structure variables that exist between entities. "Adjusted EBITDA per share - basic" refers to Adjusted EBITDA divided by the weighted average basic number of shares outstanding during the relevant periods. A reconciliation of net income to Adjusted EBITDA is provided below: Three months ended March 31 (in $000s)2025 2024Net (loss) income 622 (470 ) Add (less): Finance costs438 536Depreciation of property & equipment1,798 1,226Depreciation of right-of-use assets619 375EBITDA3,477 1,667Add: Stock based compensation580 215Loss on disposal of right-of-use assets25 14Foreign exchange loss27 2632 231Adjusted EBITDA4,109 1,898 Adjusted EBIT Adjusted EBIT refers to earnings before interest and finance charges, and taxes. A reconciliation of net income to Adjusted EBIT is provided below: Three months ended March 31 (in $000s)2025 2024Net (loss) income622 (470 ) Add: Finance costs438 536Adjusted EBIT 1,060 66 Adjusted free cash flow Adjusted free cash flow is defined by management as net income plus non-cash expenses, plus or minus the net change in non-cash working capital, less maintenance capital. Maintenance capital is also a non-IFRS term. Management defines maintenance capital as the amount of capital expenditure required to keep its operating assets functioning at the same level of efficiency. Management believes that adjusted free cash flow reflects the cash generated from the ongoing operation of the business. Adjusted free cash flow is a non-IFRS measure generally used as an indicator of funds available for re-investment and debt payment. There is no standardized method of determining free cash flow, adjusted free cash flow or maintenance capital prescribed under IFRS and therefore the Company's method of calculating these amounts is unlikely to be comparable to similar terms presented by other issuers. Adjusted free cash flow from continuing operations is calculated as follows: Three months ended March 31(in $000s)2024 2024Net (loss) income 622 (470 ) Add non-cash expenses: Depreciation of property & equipment1,798 1,226Depreciation of right-of-use assets619 375Stock based compensation580 215Finance costs (non-cash portion)(13 )453,606 1,391Change in non-cash working capital(2,060 )(933 ) Adjusted free cash flow 1,546 458 CONFERENCE CALLA conference call will be held in conjunction with this release: Date: Thursday, May 22, 2025Time: 10:00 am ET (8:00 am MT)Webinar Link: Dial: 647-374-4685 Toronto local 780-666-0144 Calgary local778-907-2071 Vancouver local346-248-7799 Houston localMeeting ID #: 990 2015 0384 Please connect 10 minutes prior to the conference call to ensure time for any software download that may be required. Participants wishing to login to the webinar will be required to register before the start of the call. Audio only dial in available without registering. Full details of the Company's financial results, in the form of the consolidated financial statements and notes for the three months ended March 31, 2025 and 2024, and Management's Discussion and Analysis of the results are available on SEDAR+ at and on the Company's website at About Zedcor Inc. Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZTM security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established MobileyeZTM platform in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest and West Coast with locations throughout Texas and in Denver, Colorado, Phoenix, Arizona and Las Vegas, Nevada. FORWARD-LOOKING STATEMENTS Certain statements included or incorporated by reference in this news release constitute forward-looking statements or forward-looking information, including expectations for customer and revenue growth in 2025, the ability of the Company to build out its footprint in the U.S. and add additional customers as a result thereof, the Company's intention to take control of its supply chain, thereby allowing it to manage demand and reduce capital costs, and the Company's intention to increase its capital markets presence and grow investor interest in the Company. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would", "may" or similar words suggesting future outcomes or expectations, including negative or grammatical variations thereof . 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 because the Company can give no assurance that such statements 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. These assumptions include anticipated manufacturing capacity and expected fleet numbers, expected utilization rates, customer growth, the impact of tariffs on the Company's business and customer buying trends, and changes in the regulatory environment and political landscape in each of Canada and the United States. Although management believes these assumptions are reasonable, there can be no assurance that they will prove to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this news 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 it is required by any applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement. This news release also makes reference to certain non-IFRS measures, which management believes assists in assessing the Company's financial performance. Readers are directed to the section above entitled "Financial Measures Reconciliations" for an explanation of the non-IFRS measures used. For further information contact: Todd ZiniukPresident and Chief Executive OfficerP: (403) 930-5430E: tziniuk@ Amin LadhaChief Financial OfficerP: (403) 930-5430E: aladha@ 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. To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Zedcor Inc. Announces Timing of First Quarter Financial Results Conference Call
Calgary, Alberta--(Newsfile Corp. - May 15, 2025) - Zedcor Inc. (TSXV: ZDC) ("Zedcor" or the "Company") is pleased to announce that the Company will release its first quarter financial results for the period ended March 31, 2025, after markets close on Wednesday, May 21, 2025. The Company will also host a conference call to discuss the results on Thursday, May 22 at 10:00 am ET (8:00 am MT). The call will be hosted by Todd Ziniuk, President & Chief Executive Officer, and Amin Ladha, Chief Financial Officer. Related earnings release materials will be available on the Company's SEDAR+ profile at and Zedcor's website at Webinar Details: Date: Thursday, May 22, 2025 Time: 10:00 am ET (8:00 am MT) Webinar Link: Dial: 647-374-4685 Toronto local 780-666-0144 Calgary local 778-907-2071 Vancouver local 346-248-7799 Houston local Meeting ID #: 990 2015 0384 Please connect 10 minutes prior to the conference call to ensure time for any software download that may be required. Participants wishing to login to the webinar will be required to register before the start of the call. Audio only dial in available without registering. About Zedcor Inc. Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZTM security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established platform of over 1,000 MobileyeZ™ towers in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest and West Coast with locations throughout Texas and in Denver, Colorado, Phoenix, Arizona and Las Vegas, Nevada. For further information contact: Todd ZiniukChief Executive OfficerP: (403) 930-5430E: tziniuk@ Amin LadhaChief Financial OfficerP: (403) 930-5430E: aladha@ 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. To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
Zedcor Inc. Reports Quarterly Results, Including $10.3 million in Revenue and $4.0 million in Adjusted EBITDA for the Fourth Quarter 2024
Calgary, Alberta--(Newsfile Corp. - April 10, 2025) - Zedcor Inc. (TSXV: ZDC) ("Zedcor" or the "Company") is pleased to announce its financial and operating results for the three and twelve months ended December 31, 2024. Highlights include: Record quarterly revenue of $10.3 million, representing an increase of 78% year-over-year and 12% quarter-over-quarter Record quarterly Adjusted EBITDA of $4.0 million, representing an increase of 185% year-over-year and 18% quarter-over-quarter Adjusted EBITDA margin increased to 39%, despite significant scaling costs out of the U.S., driven by strong contribution margins in Canada and increased operational efficiency from its AI at-the-edge cameras Deployed 186 MobileyeZTM security towers during the three months ended December 31, 2024 and 512 MobileyeZTM security towers during the year ended December 31, 2024; these security towers were deployed throughout North America and realized total fleet utilization rates above 90% for the quarter U.S. revenue exceeded 20% of total revenues for Q4 2024 The Company expects to be largely insulated from tariffs as manufacturing is based in Houston, Texas and camera costs have been locked in for 2025, while there have been no signs of demand waning, despite the geopolitical risks in the market Zedcor generated revenue of $10.3 million and $33.0 million for the three and twelve months ended December 31, 2024, respectively, and Adjusted EBITDA of $4.0 million and $12.0 million. Revenue and Adjusted EBITDA generated in the quarter were both record highs for the Company. Furthermore, the Company successfully continued its customer diversification and revenue growth efforts during the quarter, which was reflected in the revenue and Adjusted EBITDA results. Zedcor generated record daily revenue from its fleet of MobileyeZTM security towers while successfully deploying 186 new MobileyeZTM towers throughout North America, with growth focused in Texas. Notably, fleet-wide MobileyeZTM utilization rate exceeded 90% for the quarter. The U.S. accounted for more than 20% of the Company's fourth quarter revenue. The utilization rate for the fleet of security towers in the U.S. is near 100% capacity and the Company is starting to build a backlog of demand at its Houston service center. In addition, the Company has continued to establish its service offering throughout the state of Texas and into Colorado. In Canada, Zedcor continued to experience revenue growth and strong utilization rates during the quarter. While one of the focuses for Zedcor is its U.S. expansion, the Company remains committed to allocating capital as appropriate to service its growing customer base across Canada where there is continued opportunity and growth. Todd Ziniuk, President and CEO of Zedcor, commented: "The fourth quarter saw the Company continue to execute our growth strategy and deliver excellent service to customers. We have been expanding our sales team and platform to further accelerate unit sales and are seeing significant contributions in the fourth quarter from US expansion. We are currently able to service all of Texas and the Southern US, Colorado and the Midwest US, and are expanding into Arizona, California, Tennessee and other major metro areas of the United States in order to service customers. We remain focused on providing turnkey security solutions to our customers with industry leading service levels. Our equity financing which we completed subsequent to year end, and expanded debt facilities which we secured in December 2024, allow us to increase production of our security towers in anticipation of further acceleration of sales in 2025. We have ramped up our production capacity in anticipation of strong growth in 2025. We also continue to invest in growing our enterprise customer base throughout North America. While tariffs are not an immediate concern impacting our results with U.S. manufacturing in Houston, we are exploring investments down the value chain to further control our supply chain and reduce capital costs per tower." FINANCIAL & OPERATING RESULTS FOR THE THREE & TWELVE MONTHS ENDED DECEMBER 31, 2024:Three months ended December 31 Twelve months ended December 31 (in $000s, except per share amounts) 2024 2023 2024 2023 Revenue 10,334 5,799 32,992 24,889 EBITDA1 2,934 1,046 10,687 9,136 Adjusted EBITDA1 4,002 1,401 12,004 7,645 Adjusted EBIT1 884 (391) 2,378 2,114 Net income (loss) before income taxes 380 (860) 1,629 2,652 Net income (loss) per share Basic 0.01 (0.00) 0.02 0.04 Diluted 0.01 (0.01) 0.02 0.03 1 See Financial Measures Reconciliations below Zedcor recorded $10.3 million and $33.0 million of revenue for the three and twelve months ended December 31, 2024. This compares to $5.8 million and $24.9 million of revenue from the three and twelve months ended December 31, 2023. The revenue growth of 33% for the year is the result of a larger fleet of security towers located throughout the Company's six service centers in Canada. In addition, the Company has expanded its operations in the United States with locations in Texas and Colorado. Adjusted EBITDA was to $4.0 million and $12.0 million for the three and twelve months ended December 31, 2024, compared to $1.4 million and $7.6 million for the three and twelve months ended December 31, 2023. This represents a growth of 57% for the twelve months ended December 31, 2024. The growth was driven by higher revenue strong operating expense cost controls and realized efficiencies as a result of the Company's upgraded cameras with AI at-the-edge. The Company's security and surveillance services saw increased revenues and EBITDA for the twelve months ended December 31, 2024 compared to 2023 due largely to increased customer demand of its larger fleet of MobileyeZ security towers and a diversified customer base. In addition, the Company had a full year of operations within the United States which resulted in increased revenues of $2.1 million and $4.5 million for the three and twelve months ended December 31, 2024. Zedcor exited the period with 1,337 MobileyeZTM security towers which was an increase of 512 when compared to December 31, 2023. Of the 1,337 units, more than 360, or more than 25%, security towers are located in the Company's US based service centers. In addition, the company manufactured and deployed more than 50 ZBox wall mounted security units in Canada during the year ended December 31, 2024. Financial and operational highlights for the three and twelve months ended December 31, 2024 include: For the twelve months ended December 31, 2024 net income before tax was $1.6 million compared to net income before tax of $2.6 million for the twelve months ended December 31, 2023. The decrease in net income year over year is directly attributable to: 1) an increase in corporate-related costs and higher finance charges; 2) an increase in general & administrative costs to support the continued expansion throughout Canada and the United States; and 3) lower bonus amount related to the Company's sale of its oilfield equipment rental business from 2021. Zedcor still remained profitable during 2024 due to: 1) a larger fleet of towers and strong customer demand which drove utilization and, in turn, revenues; and 2) cost controls and efficiencies generated from our AI camera implementations which related in lower operating expenses year over year despite a large fleet of towers and US operations. Diversification away from the Company's core pipeline construction customers. As the Company increases its fleet of MobileyeZTM and expands geographically, our risk related to customer concentration has decreased. Zedcor's services are customer and industry agonistic and we continued to see that in the first twelve months of 2024 as we were able to diversify our customers across the construction industry, into retail security and across other business segments. In addition, of our $10.3 million of revenue for the three months ended December 31, 2024, more than 85% of it is reoccurring and 21% of it was generated from the US. The Company attract numerous new customers across Canada. For the 3 months ended December 31, 2024, the Company provided services to more than 50 new customers. For the 12 months ended December 31, 2024, the Company added over 190 new customers. On track US expansion. Zedcor exited the year with over 350 MobileyeZTM located in the US, expanded the base of operations with the ability to service customers across Texas, and opened an equipment and servicing center in Denver, Colorado. For the year ended December 31, 2024, the Company generated $4,.5 million of revenues in the US. This number is expected to expand as the Company intends to build out its footprint in the US and increase customers its customer base. Continued development and expansion of manufacturing capabilities. Zedcor has manufactured over 420 of its Solar MobileyeZTM Security Towers and has ramped up production capacity out of its Houston, Texas facility with the ability to meet customer demand in North America. The Company is actively managing its component suppliers and supply chains, while finding efficiencies in order to streamline manufacturing. Subsequent to the end of the year, the Company increased its capacity to manufacture 25 units weekly. Growth in the retail security segment with an expanded rental and service agreement to provide MobileyeZTM security towers at over 20 sites for a leading North American home improvement retailer. This represented an additional ten store locations and thirteen locations across Canada for the customer's capital initiatives program, including new store builds or major renovations, bringing the total MobileyeZTM coverage for the customer in Canada to over 20 stores and two distribution centers. Investment in expansion of enterprise-level sales and obtaining enterprise-level customers. Payment of $3.5 million to retire the balance of a promissory note issued in February 2016 and exercise of all outstanding warrants on the Company's balance sheet. This resulted in a streamlined capital structure for the Company. Completion of a $15.0 million equity financing in 2024 and $30.0 million debt financing in December 2024 to help expedite our long-term strategy. SELECTED QUARTERLY FINANCIAL INFORMATION (Unaudited - in $000s) Dec312024 Sept302024 June302024 Mar312024 Dec312023 Sept302023 Jun302023 Mar312023 Revenue 10,334 9,152 7,372 6,134 5,799 6,431 6,216 6,443 Net income (loss) 380 310 1,409 (470) (860) 288 2,472 752 Adjusted EBITDA¹ 4,002 3,409 2,695 1,898 1,401 2,285 1,824 2,135 Adjusted EBITDA per share - basic¹ 0.04 0.04 0.03 0.03 0.02 0.03 0.02 0.03 Net income (loss) per share Basic 0.01 0.00 0.02 (0.01) (0.00) 0.00 0.03 0.01 Diluted 0.01 0.00 0.02 (0.01) (0.01) 0.00 0.03 0.01 Adjusted free cash flow¹ 3,305 3,342 1,016 458 482 4,664 968 978 1 See Financial Measures Reconciliations below LIQUIDITY AND CAPITAL RESOURCESTwelve months ended December 31 (in $000s) 2024 2023 $ Change % Change Cash flow from operating activities 11,020 9,886 1,134 11% Cash flow used in investing activities (20,533) (13,451) (7,082) (53%) Cash flow from financing activities 13,802 4,468 9,334 209% The following table presents a summary of working capital information:Twelve months ended December 31 (in $000s) 2024 2023 $ Change % Change Current assets 15,541 7,286 8,256 113% Current liabilities * 14,239 9,451 4,788 51% Working capital 1,302 (2,165) 3,467 160% *Includes $4.1 million of debt and $3.0 million of lease liabilities in 2024 and $3.8 million of debt and $2.4 million of lease liabilities in 2023 The primary uses of funds are operating expenses, maintenance and growth capital spending, interest and principal payments on debt facilities. The Company has a variety of sources available to meet these liquidity needs, including cash generated from operations. In general, the Company funds its operations with cash flow generated from operations, while growth capital and acquisitions are typically funded by issuing new equity or debt. Principal Credit Facility (in $000s) Interest rate Final maturity Facility maximum Outstanding as at December 31, 2024 Outstanding as at December 31, 2023 Non-Revolving Reducing Term Loan Prime + 1.50% Dec 2027 20,000 19,732 - Revolving Operating Loan Prime + 1.50% Revolving 10,000 - - Term Loan N/A N/A N/A - 3,538 Revolving Equipment Financing N/A N/A N/A - 13,096 Authorized Overdraft N/A N/A N/A - - Equipment Financing Various Various N/A 390 - 20,122 16,634 Current portion(4,068) (3,788) Long term debt16,054 12,846 On December 18, 2024, the Company entered into a Commitment Letter with ATB Financial which provided the Company with the following: A $10.0 million revolving operating loan. The Company is able to draw on this facility for working capital, capital expenditures, and general corporate purposes. The Company may borrow, repay, reborrow, and convert between types of borrowings. This is due and payable in full on the maturity date of December 17, 2027. A $20.0 million non-revolving reducing term loan, available in two advances, (i) initial advance to pay out in full the indebtedness of the existing Term Loan and (ii) an amount not exceeding the remainder of the maximum amount shall be used for working capital, capital expenditures, and general corporate purposes. This loan is amortized over 60 months with any unpaid balance due and payable on December 17, 2027. Commencing on January 31, 2025, and on the last Business Day of each month thereafter, the Company shall make equal principal and interest repayments. The interest is payable at Prime plus the applicable margin. The applicable margin means, with respect to each facility, the percentage per annum applicable to the Net Funded Debt to EBITDA ratio. As at December 31, 2024 the Applicable Margin was 1.50%. The agreement has the following quarterly financial covenant requirements: A Net Funded Debt to EBITDA ratio of no more than 3.50:1.00, as at the Closing Date or as at the end of any fiscal quarter thereafter up to and including June 30, 2025; or A Net Funded Debt to EBITDA ratio of no more than 3.00:1.00 as at the end of fiscal quarter ending September 30, 2025 or any Fiscal Quarter thereafter; and A Fixed Charge Coverage Ratio of no less than 1.15:1.00 as at the Closing Date or as at the end of any fiscal quarter thereafter The credit facilities were secured with a first charge over the Company's current and after acquired equipment, a general security agreement, and other standard non-financial security. As at December 31, 2024, the Company is in compliance with its financial covenant requirements. The Company may also enter into specific financing agreements with certain vendors for specific pieces of equipment. These financing agreements are entered into at the time of purchase and granted by various third parties based on the Company's financial condition at the time. They are secured with specific equipment being financed and terms and interest rates are decided at the time of application. As at December 31, 2024 the Company had $390 outstanding with respect to these specific financing agreements. As at December 31, 2023, the Company had the following credit facilities which were repaid in 2024 and replaced with the ATB Financial facilities: A $6.1 million term loan. The term loan bore interest at 5.15% and had monthly blended principal and interest payments of $0.1 million. A $15.0 million revolving equipment financing facility. An authorized overdraft facility up to $6.0 million, secured by the Company's accounts receivable, up to 75%, less priority payables which were GST payable, income taxes payable, employee remittances payable and WCB payables. CREDIT RISKCredit risk is the risk of financial loss resulting from a customer or counter party to a financial instrument failing to meet its obligation to the Company. Credit risk arises principally from the Company's cash, accounts receivable and leases receivable. The Company is exposed to credit risk with respect to cash and actively manages that risk with deposits at reputable financial institutions. The Company is exposed to credit risk with respect to accounts receivable as it has a concentration of customers involved in the construction industry. The Company's accounts receivable represent balances owing, largely, by a number of unrelated companies with no significant exposure to any individual customer. Management believes that the Company's credit risk with respect to accounts receivable is limited due to the Company's broad customer base. Historically credit losses have not been significant. As at December 31, 2024, no one customer makes up 10% or more of the Company's accounts receivable balance (As at December 31, 2023 - one customer accounted for 11%). OUTLOOK Zedcor continues to execute its long-term strategy of growing its technology enabled security services across North America. Zedcor continues to effectively use a mix of cash flow and debt to build additional MobileyeZTM security towers to provide surveillance services to our expanding customer base. The Company has grown its salesforce across Canada in order to obtain contracts for its MobileyeZTM and continue to expand its service offering to different industries. The Company also expanded its service offering throughout Texas and is excited about the early results we are seeing for expansion to other regions in the United States. As at December 31, 2024 the US total fleet was 367 with a utilization rate over 90%. This compares to Canada with a fleet of 970. Priorities that the Company intends to focus on for the remainder for 2025 include: Expanding operations in the United States and continuing to grow revenue in Canada. Due to significant spending on infrastructure in North America, along with increased theft and vandalism, the Company is seeing strong demand for its products in both countries. Zedcor's innovative products, coupled with the Company's commitment to customer service, are perfectly situated to disrupt the traditional security market. With the strong demand that Zedcor is seeing for its security towers, the Company intends to further take control of its supply chain and remove bottlenecks for its security towers by manufacturing and assembling more of the components of its towers in house. This will allow us to actively manage demand and, over time, reduce our capital costs. Building new, innovative products based on customer demand. As the Company has obtained customers in different industry verticals, it has seen an increasing number of use cases for its security solutions coupled with Zedcor's 24/7 Live, VerifiedTM video monitoring. This includes a need for additional AI based technology that is actively monitored as well as a mobile security product with a smaller footprint. The Company intends to focus on creating customer and shareholder value and realizing positive earnings per share. By effectively managing its growth, executing on the above-noted strategies and increasing its capital markets presence, Zedcor expects to continue to generate positive earnings per share and to, grow investor interest in the Company. NON-IFRS MEASURES RECONCILIATION Zedcor uses certain measures in this news release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS"). These measures which are derived from information reported in the consolidated statement of comprehensive income may not be comparable to similar measures presented by other reporting issuers. These measures have been described and presented in this news release in order to provide shareholders and potential investors with additional information regarding the Company. Investors are cautioned that EBITDA, Adjusted EBITDA, Adjusted EBITDA per share, Adjusted EBIT and Adjusted free cash flow are not acceptable alternatives to net income or net income per share, a measurement of liquidity, or comparable measures as determined in accordance with IFRS. EBITDA and Adjusted EBITDA EBITDA refers to net income before finance costs, income taxes, depreciation and amortization., and gains and losses on sale of equipment Adjusted EBITDA is calculated as EBITDA before costs associated with severance, gains and losses relating to foreign exchange, loss on sale of equipment, loss on disposal of right of use asset, loss on repayment of note payable and stock based compensation. These measures do not have a standardized definition prescribed by IFRS and therefore may not be comparable to similar captioned terms presented by other issuers. Management believes that EBITDA and Adjusted EBITDA are useful measures of performance as they eliminate non-recurring items and the impact of finance and tax structure variables that exist between entities. "Adjusted EBITDA per share - basic" refers to Adjusted EBITDA divided by the weighted average basic number of shares outstanding during the relevant periods. A reconciliation of net income to Adjusted EBITDA is provided below:Three months ended December 31 Twelve months ended December 31 (in $000s) 2024 2023 2024 2023 Net income (loss) 380 (860) 1,629 2,652 Add (less): Finance costs 504 469 1,949 1,621 Depreciation of property & equipment 1,416 1,048 5,303 3,614 Depreciation of right-of-use assets 634 389 1,806 1,249 EBITDA 2,934 1,046 10,687 9,136 Add (deduct): Stock based compensation 531 180 1,566 562 Foreign exchange loss (gain) 20 6 55 (2) Loss on sale of equipment 405 100 755 27 Loss on disposal of right-of-use asset 112 69 141 81 Loss on repayment of note payable - - 173 - Other income - - (1,373) (2,159)1,068 355 1,317 (1,491) Adjusted EBITDA 4,002 1,401 12,004 7,645 Adjusted EBIT Adjusted EBIT refers to earnings before interest and finance charges, taxes, loss on repayment of note payable and other income. A reconciliation of net income to Adjusted EBIT is provided below:Three months ended December 31 Twelve months ended December 31 (in $000s) 2024 2023 2024 2023 Net income (loss) 380 (860) 1,629 2,652 Add (deduct): Finance costs 504 469 1,949 1,621 Loss on repayment of note payable - - 173 - Other income - - (1,373) (2,159) Adjusted EBIT 884 (391) 2,378 2,114 Adjusted free cash flow Adjusted free cash flow is defined by management as net income plus non-cash expenses, plus or minus the net change in non-cash working capital, plus severance costs (if applicable). Management believes that adjusted free cash flow reflects the cash generated from the ongoing operation of the business. Adjusted free cash flow is a non-IFRS measure generally used as an indicator of funds available for re-investment and debt payment. There is no standardized method of determining adjusted free cash flow prescribed under IFRS and therefore the Company's method of calculating these amounts is unlikely to be comparable to similar terms presented by other issuers. Adjusted free cash flow from continuing operations is calculated as follows:Three months ended December 31 Twelve months ended December 31 (in $000s) 2024 2023 2024 2023 Net income (loss) 380 (860) 1,629 2,652 Add non-cash expenses: Depreciation of property & equipment 1,416 1,048 5,303 3,614 Depreciation of right-of-use assets 634 389 1,806 1,249 Stock based compensation 531 180 1,566 562 Finance costs (non-cash portion) (186) 116 (128) 151 Loss on repayment of note payable - - 173 -2,775 873 10,349 8,228 (Deduct) non-recurring income Other income - - (1,373) (2,159)2,775 873 8,976 6,069 Change in non-cash working capital 529 (391) (855) 1,023 Adjusted free cash flow 3,304 482 8,121 7,092 CONFERENCE CALLA conference call will be held in conjunction with this release: Date: Thursday, April 10, 2025Time: 10:00 am ET (8:00 am MT)Webinar Link: Dial: 647-374-4685 Toronto local 780-666-0144 Calgary local778-907-2071 Vancouver local346-248-7799 Houston localMeeting ID #: 933 2477 9565Pass code: 516205 Please connect 10 minutes prior to the conference call to ensure time for any software download that may be required. Participants wishing to login to the webinar will be required to register before the start of the call. Audio only dial in available without registering. Full details of the Company's financial results, in the form of the consolidated financial statements and notes for the three and twelve months ended December 31, 2024 and 2023, and Management's Discussion and Analysis of the results are available on SEDAR+ at and on the Company's website at About Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZTM security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established MobileyeZTM platform in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest with locations throughout Texas and in Denver, Colorado, with a location in Phoenix, Arizona expected in the second half of the year. FORWARD-LOOKING STATEMENTSCertain statements included or incorporated by reference in this news release constitute forward-looking statements or forward-looking information, including expectations for customer and revenue growth in 2025, the ability of the Company to build out its footprint in the U.S. and add additional customers as a result thereof, the Company's intention to take control of its supply chain, thereby allowing it to manage demand and reduce capital costs, and the Company's intention to increase its capital markets presence and grow investor interest in the Company. Forward-Looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would", "may" or similar words suggesting future outcomes or expectations, including negative or grammatical variations thereof . 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 because the Company can give no assurance that such statements 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. These assumptions include anticipated manufacturing capacity and expected fleet numbers, expected utilization rates, customer growth, the impact of tariffs on the Company's business and customer buying trends, and changes in the regulatory environment and political landscape in each of Canada and the United States. Although management believes these assumptions are reasonable, there can be no assurance that they will prove to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this news 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 it is required by any applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement. This news release also makes reference to certain non-IFRS measures, which management believes assists in assessing the Company's financial performance. Readers are directed to the section above entitled "Financial Measures Reconciliations" for an explanation of the non-IFRS measures used. For further information contact: Todd ZiniukPresident and Chief Executive OfficerP: (403) 930-5430E: tziniuk@ Amin LadhaChief Financial OfficerP: (403) 930-5430E: aladha@ 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. To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
Zedcor Inc. Announces Closing of $25M Bought Deal Public Offering Including Exercise in Full of Over-Allotment Option
Calgary, Alberta--(Newsfile Corp. - February 5, 2025) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce the closing of its previously announced upsized bought deal public offering of common shares of the Company (the "Offering"). The Company entered into an agreement with Beacon Securities Limited ("Beacon"), on behalf of a syndicate of underwriters including Cormark Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., and Paradigm Capital Inc. (together with Beacon, the "Underwriters"), whereby the Underwriters purchased, on a bought deal basis, a total of 7,555,500 common shares (the "Offered Shares") of the Company at a price of $3.35 per Offered Share (the "Issue Price") for aggregate gross proceeds to the Company of $25,310,925 including proceeds raised from the over-allotment option, exercised in full. The Offered Shares were offered in all provinces of Canada, except Quebec, pursuant to a short form prospectus dated January 29, 2025 and in the United States to Qualified Institutional Buyers (as defined in Rule 144A under the United States Securities Act of 1933, as amended (the "1933 Act")) and to a limited number of "accredited investors" (as defined in Rule 501(a) of Regulation D under the 1933 Act), in each case by way of private placement pursuant to an exemption from the registration requirements of the 1933 Act and pursuant to any applicable securities laws of any state of the United States. The Company intends to use the net proceeds of the Offering for the accelerated expansion of its service platform across the United States and Canada, increased sales and marketing efforts, growth of its fleet of MobileyeZTM security towers to meet strong demand from its U.S. operations, other capital expenditures, working capital and general corporate purposes. In consideration for the services rendered by the Underwriters in connection with the Offering, the Company paid the Underwriters a cash fee equal to 5.0% of the gross proceeds. The securities have not been and will not be registered under the 1933 Act, as amended, or any U.S. state securities laws, and may not be offered or sold in the "United States" (as such term is defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable U.S. state securities laws or an exemption from such registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. About Zedcor Inc. Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZ™ security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established platform of MobileyeZ™ towers in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest with locations throughout Texas and in Denver, Colorado, with a location in Phoenix, Arizona and Atlanta, Georgia anticipated in the first half of 2025. FORWARD-LOOKING STATEMENTS Certain statements included in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information can be identified by terminology such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "may be", or similar words (including negative or grammatical variations) suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to: the use of the net proceeds of the Offering, anticipated demand from the Company's U.S. operations, and the expansion of the Company's service offering to other geographic regions. 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 current forecasts and anticipated utilization rates; the availability of debt and equity financing; the ability of the Company to obtain an adequate supply of the equipment required to construct towers; the availability of skilled personnel; and the level of competition in the marketplaces and industries in which the Company operates. Although management of the Company believes these expectations and assumptions reflected in these forward-looking statements or information to be reasonable, there can be no assurance that any forward-looking statements or information will be proved to be correct, and actual results may differ materially from those anticipated in such statements or information. 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. For further information contact: Todd ZiniukChief Executive Officer P: (403) 930-5430E: tziniuk@ Amin LadhaChief Financial Officer P: (403) 930-5430E: aladha@ 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. NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. 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