June 2020 Shareholders Update

Hello Shareholders,

Another month has passed and here are our highlights since my last update.

Development

Our development partner, The Coding Studio, has made significant progress on the back-end application development since our last update. They have established a development environment with the pre-built theme I mentioned in my last update and have made good progress in customizing the theme to our specific requirements. At this time development is continuing on track and a mid-October code completion date with our closed Beta running in November is still our schedule. Chief Products Officer Vincent Sundar has recruited Scott Campbell, an experienced senior developer, to come and operate as our in-house resource for ongoing support and evolution of the product roadmap once we receive the go-to-market product from TCS. Scott has been with the team since the beginning of July and has contributed several good ideas and clarifications for us as we have been smoothing out the finer points of the back-end design. The long-term product roadmap is shaping up well, and we are working through a prioritization exercise now of our 12-24-month enhancements and growth areas we want to invest in once the initial go-to-market product is available.

Funding

Both Founder and Round A funding cycles are complete at this time, both reaching full subscription and raising a combined $351,000 in cash and equivalent investments. In the end, we have actually had to turn away 3 potential investors who stepped forward after Round A was fully subscribed, and we are now maintaining a “waitlist” of interested parties for a possible Round B, should we open a second offering of the un-allocated Class B shares after our product launch. We received confirmation on July 8th that we have also been approved for our operating line of credit through CIBC. Though we only intend to use this as an emergency mechanism, our representative from CIBC offered the following unsolicited commentary upon closing of our paperwork: “This is the first time I’ve ever seen a credit line of this amount approved for a start up. Of course, that is due to the strength of your business case and initial funding efforts, but it is still a first for me.” Adding to all other sources, we now have access to over $400,000 of operating capital should we need it.

Marketing

VP Marketing Trina Wallace has had a busy month as we have worked to establish our branding materials and guidelines for the Eligere product line. Our regular press releases and social media activity on Facebook and LinkedIn have generated a good quantity of traffic to our website since the website launched shortly after our last update, with over 400 unique visitors over our first month of marketing operations. We have also completed our first screen captures of the new system:

Our customer engagement efforts also started in early July, with the launch of our Concierge and Early Adopter sign-up programs. Any shareholders who are aware of friends, family or colleagues who may be good candidates for our early adopter group, please refer them to our website so we can fill our early adopter spots. The founder group is proceeding with our own direct marketing efforts to attract our network partners are well. In an effort to “lend luxury to luxury”, we have approached several luxury brands and offered them advertising rights on our platform for the first few months of operations, in exchange for them providing us creative content for their brand that ties in with our brand as well. This has been well received, though all of the possible partnerships are still actively in negotiation at this time.

Operations

MPP Software has established our Edmonton development office, and we have signed the lease on our Lethbridge headquarters. Preparations are being made for our move-in, and we will be officially opening the headquarters location in Lethbridge’s downtown Royal Bank building on October 1st. We have an active posting for a Customer Experience Lead, who will be our final 2020 hire and are hoping to find the right person to join our team in time for late Q3 or early Q4 as we get ready to onboard our early adopters in November. Lastly, we have made good progress in our negotiations with our cloud hosting providers, and due to taking advantage of current COVID-related incentives for new clients, we look to be able to lock in a 68% rate reduction for up to our first 3 years of service, which will have a marked impact on our operating costs during our start-up period. We will be initializing our cloud servers in September.

In Closing

The rest of July is going to see big strides in the front-end development of the system, establishment of the governance oversight by the Board created after the Round A completed and expanded direct marketing efforts to fill our early adopter roster. From all of our growing team, thank you to our shareholders for the quick and positive response to our Round A offering. We are positioned to run our first year and a half with few worries on the cash front, which allows us to focus on growing the business.

Regards,

Colin Moreland, CEO