VOTI Detection Holds Virtual Annual General and Special Meeting of Shareholders
April 28, 2020
VOTI Detection Inc. ("VOTI" or "the Company") (TSXV: VOTI), a leading-edge Canadian technology company that develops latest-generation X-ray security systems based on 3D Perspective™ technology,...
CEO Provides Company Outlook
MONTREAL, April 28, 2020 /CNW Telbec/ - VOTI Detection Inc. ("VOTI" or "the Company") (TSXV: VOTI), a leading-edge Canadian technology company that develops latest-generation X-ray security systems based on 3D Perspective™ technology, held its virtual annual meeting of shareholders today, and is pleased to announce that all resolutions proposed to its shareholders were approved, including the re-election of its directors and auditors, the unallocated options under the stock option plan, and the amendment to its stock option, restricted share unit and deferred share unit plans.
Following the conclusion of the official portion of the Annual and Special Meeting of Shareholders, President & CEO Rory Olson provided an update on the outlook for the Company going forward.
"Fiscal 2019 was truly a pivotal year for our Company with record deliveries, important breakthroughs into new markets, success with the certification of a large number of our scanners and the introductions of VOTIInsights, the Company's new state-of-the-art, fully integrated analytics and fleet management solution and BioSans Matrix, VOTI's new advanced intelligent operating system. While we were extremely pleased with our performance in fiscal 2019 and we had a very positive outlook heading into the current fiscal year, we, as every other business, had to deal with the extreme uncertainties that came with the onset of the coronavirus pandemic and the resulting shutdown of the world economy."
Olson continued, "We acted very quickly in terms of the development of a mitigation plan. Heading into the pandemic, we immediately took action to position our company to best weather the storm, despite the fact that we were in uncharted territory. We made a very important decision to be proactive in terms of cash management and conservation. VOTI instituted cost cutting initiatives to put the company on a path towards achieving positive Adjusted EBITDA in fiscal 2020, dependant on market conditions for our Fiscal third and fourth quarters. Cost reductions of $2.0 million included reductions in executive and senior leadership compensation, reductions related to improving operational efficiencies, and reductions in the cost of components in our scanners through successful R&D initiatives begun in fiscal 2019. We also recently announced the closing of a $3.6 million non-brokered private placement with the issuing of 3,600 convertible debenture units at $1,000 each for aggregate gross proceeds of $3.6 million. The proceeds raised from the issue will be used for working capital and general corporate purposes. We are also actively engaged in discussions with our banks and with government agencies to best take advantage of any additional programs that have been put in place to weather the storm."
Olson concluded, "While we are unable to forecast the exact date that we will return to a more normalized state – we do know that we have a number of factors that are playing in our favour. First and foremost, given that we are considered an essential service, our shop floor in Montreal has been in operation throughout the crisis and we have been shipping as well. Our operations in Taiwan were never closed and our facility in Malaysia has just reopened and is operating at 50% capacity. Secondly, we are in the security infrastructure business, a business that is a necessity and a business where the demand curve does not change – it just shifts into the future. That means that we have not had any orders cancelled – a significant number of orders have remained in place and some have been postponed to a subsequent quarter, but, importantly, our pipeline remains strong. This situation is truly advantageous for us and we are very fortunate when looking at the devastation that has been wrought on so many other businesses. We continue to monitor the situation on a day to day basis but are very optimistic when looking at our overall business going forward."
VOTI is set to report its Fiscal 2020 second quarter results on June 25, 2020.
About VOTI Detection
VOTI Detection, headquartered in Montreal, Quebec, and listed on the TSX Venture Exchange, is a leading-edge Canadian technology company that develops latest-generation X-ray security systems based on 3D Perspective™ technology. VOTI's technology produces remarkably sharp and more revealing X-ray images that are competitively superior while delivering enhanced threat detection capabilities and an improved user experience. Since its inception, VOTI has installed scanners in more than 50 countries and has consulted heavily with government agencies and security specialists worldwide to develop feature-rich and easy-to-use scanners that meet the sophisticated needs of modern security screening operations. www.votidetection.com
Notice regarding forward-looking statements:
This release includes forward-looking information within the meaning of Canadian securities laws regarding VOTI Detection and its business. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of VOTI Detection, and are based on assumptions and subject to risks and uncertainties. Although the management of VOTI Detection believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the threat detection technology industry, failure to obtain regulatory approvals, economic factors, management's ability to manage and to operate the business of VOTI Detection, the equity markets generally and risks associated with growth and competition. Although VOTI Detection has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and VOTI Detection does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. In addition, the current situation and future developments with respect to the COVID-19 pandemic could cause certain of the assumptions and information set forth herein or the fact that on which such assumptions are based to differ materially from previous expectations including in respect of demand for our products, supply chain and availability of materials, mobility and shipping of materials and or products, access to debt and equity capital and other factors.
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.
SOURCE VOTI Detection Inc.