December 15th, 2015

Visionstate: The Mall is Back

Visionstate to Install Digital Advertising in 30 U.S. Malls

EDMONTON, AB / ACCESSWIRE / June 22, 2015 / On-line shopping has tried and failed to kill the American Mall. Although consumers pledge allegiance to pricing and convenience, we are deeply social beings and continue to flock to the big shopping temples to eat, fraternize and spend money.

Class A malls, featuring department stores like Bloomingdale's and Apple are now posting annual sales of up to US$5,000 a square foot. Household assets of Class A and Class B mall shoppers have jumped from about US$22 trillion in 2010 to US$35 trillion in 2014, according to Green Street Advisors.

On June 15, 2015 Visionstate (TSX.Venture: VIS) entered into an agreement with McGavren Guild Malls (MGM) to market and sell digital advertising across a network of 90 interactive way-finding Kiosks to be installed and owned by Visionstate.

Visionstate is set to install 90 Vicci Interactive way finding kiosks in 30 large shopping malls in the United States. It is estimated that over 270 million shoppers will visit malls located within this network in a given year.

Revenue derived from digital advertising on this network is contractually shared between the parties. MG Malls focus in the mall advertising space, and in particular the malls involved in this partnership, develop a financial model that will be dynamic for both parties.

As well as the advertising revenue, Visionstate will receive an on-going software licensing and service fee. The ownership of this network is expected to provide consistent and significant cash flow to VIS.

"McGavren Guild Malls is known for its strength and contacts in the media sales industry," states Visionstate President and CEO, John Putters in an exclusive interview with Financial Press, "Their expertise will be a tremendous benefit to this project. We are eager to see this network of kiosks reach its full potential."

Putters believes that the collaboration with MGM is an important milestone in achieving Visionstate's long range objectives. VIS is aggressively installing interactive networks in shopping centers throughout the US.The 90 installed units will have a total of 180 downloadable digital media advertising screens.

"Our strategy is to partner with the leaders in each advertising discipline," stated Putters, "There are two large LCD high-definition screens per kiosk that will be stream advertising."

Putters partnered with MGM because of its expertise in the mall space, and its focus on a new media - which is taking market share from traditional mall advertisers. Visionstate takes a percentage of all advertising dollars going through the network.

"These are not just interactive directories," stated Putters, "They are more like multimedia hubs. We are remotely delivering visual content to mall customers."

The next piece of the puzzle for Visionstate is proximity marketing. The company is talking to leading potential partners now.

"Proximity marketing is an important part of our strategy going forward," confirmed Putters, "The way that works is that you walk into a shopping center, the installed unit pings the customers' phone and the end user has the ability to download surgically targeted coupons."

Visionstate's technology allows advertisers to collect demographic information so that products can be advertised and sold more efficiently.

Putters believes it is important that Visionstate owns the network hardware. The digital out-of-home advertising market is starting to mature. VIS has made a strategic decision to drive revenues from license and service fees, as well as well as digital, mobile and proximity marketing.

"Another new technology, which we are positioned to exploit, is Infrared Traffic Detection," explained Putters, "It is extremely valuable for a digital advertiser to know the traffic that is passing by an ad screen."

To be sustainable it is important to maintain the network of kiosks, which lends to having a monthly fee for upkeep.

"Properties with ViCCi will be paying a monthly fee per unit, to use the software for the interactive customer service and way finding," stated Putters, "They retain full control over their directories through our content management system, which we've been perfecting for the last decade."

Putters expects the pay-back period on the initial capital cost investment to be about two years. That projection is based on digital advertising only.

Visionstate has also developed touchscreen directories, mobile applications and cleaning management software. Its product WANDA (Washroom Attendant Notification Digital Aid) is a smart device for public restrooms - promotes better allocation of cleaning supplies and human resource capital.

WANDA provides a one-time fee for the hardware and a monthly fee for the software license that manages the data. 

Visionstate is currently trading at .10 with a market cap of $2.3 million.

About Visionstate Inc.

Visionstate Inc., a division of Visionstate Corp. (TSX VENTURE:VIS) is the leader in interactive technology software that connects the world with enhanced guest services. Since its first installation in 2005, Visionstate has grown to see its software in buildings throughout Canada and the United States. By engaging customers throughout a facility, from touchscreen directories to mobile applications to cleaning management software, Visionstate adds to a building's experience with its original interactive solutions. More information can be found at www.Visionstate.com.

Contact:

Visionstate Inc.
John Putters
President/CEO
Cell: 587-985-2601
Office: 780-425-9460
jputters@visionstate.com

Visionstate Inc.
Derek Wood
Investor Relations
(403) 200-3569
Derek@visionstate.com
www.visionstate.com

SOURCE: Visionstate Inc.

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