Xigem Technologies Grows Its Technology Portfolio; Announces Strategic Investment in "Last Mile" Technology Provider iDealer, Inc.
Toronto, Ontario--(Newsfile Corp. - September 20, 2021) - Xigem Technologies Corporation (CSE: XIGM) (OTCQB: XIGMF) (FSE: 2C1) ("Xigem" or the "Company"), a technology provider for the emerging remote economy, is pleased to announce that it has entered into a letter of intent on September 14, 2021 (the "LOI") to acquire up to 22% of the common shares of iDealer, Inc. ("iDealer"), a transportation management technology provider for automobile dealers and other fleet operators. The all-cash transaction is valued at up to $874,896 (the "Transaction") and calls for payments to be made in three tranches over the course of fifteen months beginning on the date the Transaction closes; the third tranche is subject to the performance of iDealer. In addition, the Company will appoint a representative to the iDealer board of directors. On a continuing basis, this investment will allow Xigem to recognize its share of profit (or loss), after the effective date of acquisition, from the results of iDealer.
iDealer is a SaaS-based transportation, dispatch and routing management system which is built on a proprietary artificial intelligence (AI) technology. In its current form, iDealer automates dispatching, delivers optimal routing and manages changes in real time for automotive dealers and their on-duty drivers when shuttling customers and parts, a mission critical "last mile" operation. iDealer streamlines a dealership's in-house drivers' operation, lowers cost per ride and customers' average waiting time, eliminates errors, and improves overall customer satisfaction index.
iDealer offers three products to increase efficiency of dealers' operations including: courtesy shuttle services, valet service and parts run management. The iDealer SaaS platform has gained rapid traction among automotive dealers in North America and Australia, having been implemented at dealerships representing every major automobile brand. Data collected by iDealer shows that those dealerships have generated an average 9 times return on investment in the iDealer solution. iDealer also has an exclusive integration partnership with Uber for Business to: facilitate high-demand situations, extend service areas for iDealer users, reduce average ride costs and enable operators to optimize their in-house fleet size.
"iDealer extends and complements Xigem's growing portfolio of SaaS platforms for the remote economy with an entrée into the trillion dollar automotive dealer market, and enhances Xigem's ability to enter other verticals where the real-time monitoring of and communication with fleets is fundamental to their success," said Anton Tikhomirov, chief technology officer of Xigem. "This investment is a strong fit with our strategy of aggregating a portfolio of technologies that are capable of disrupting traditional business models."
The automotive dealer market is expected to reach approximately US$1 trillion in 2021.i According to McKinsey & Company, parts-and-service departments are contributing a growing share of dealership profits. Dealers can manage change by improving operating efficiency and digitizing processes to create a more engaging experience for customers.ii iDealer provides them with a solution.
"We are pleased to add Xigem as a strategic investor and look forward to a successful collaboration," said Sergey Nekipelov, CEO of iDealer. "We will invest this capital into the further development and commercialization of our technology to deliver new solutions and additional value to our customers in the automotive industry and beyond."
The Transaction is expected to close by December 31, 2021, subject to the completion of due diligence, the execution of definitive agreements and the receipt of any regulatory approvals. The Transaction is considered arm's length and no finder's fee may be payable.
iDealer automatically creates optimal routes for drivers, tracks vehicles in real time and provides ETA updates to customers
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About Xigem Technologies Corporation
Established in Toronto, Ontario, Xigem is positioned to become a leading technology provider for the emerging near trillion-dollar remote economy, with software capable of improving the capacity, productivity, and overall remote operations for businesses, consumers and other organizations. iAgent, the Company's patented technology, will provide organizations, businesses and consumers with the tools necessary to thrive in a vast array of remote working, learning and treatment environments while the Company looks to aggregate a portfolio of innovative technologies capable of disrupting traditional business models.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. In particular, forward-looking statements in this news release include, but are not limited to, statements with respect to the anticipated timing and closing of the Transaction, the parties entering into a definitive agreement, the Company receiving any and all required regulatory approvals, the ability of the Company to finance the Transaction, iDealer's ability to grow in the automotive dealer market, and iDealer's ability to expand into other sectors. Forward-looking statements necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Such risks and factors include, but are not limited to the Company's inability to secure or maintain regulatory, exchange and/or other approvals necessary to continue its business operations as proposed. Although the management believes that the expectations and assumptions on which such forward-looking information is based are reasonable, readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws. Forward-looking statements, forward-looking financial information and other metrics presented herein are not intended as guidance or projections for the periods referenced herein or any future periods, and in particular, past performance is not an indicator of future results and the results of the Company in this news release may not be indicative of, and are not an estimate, forecast or projection of the Company's future results. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Xigem Technologies Corporation
On behalf of the Company:
Brian Kalish, Chief Executive Officer
For further information:
i Source: IBISWorld, "New Car Dealers in the US - Market Size 2005-2027"
ii Source: McKinsey, "As dramatic disruption comes to automotive showrooms, proactive dealers can benefit greatly," January 2019.
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