Vancouver, B.C., Canada – January 29, 2020 ‐ Legend Power® Systems Inc. (TSX.V: LPS) (“Legend Power” or the “Company”), a global leader in onsite energy management technology, today releases its Letter to Shareholders from CEO Randy Buchamer.
Dear Legend Power Shareholders:
Fiscal 2019 was a transitional and transformational year for your company. It was “transitional” in that we completed a tremendous amount of work that is helping us to build our business in 2020. A big part of the transition was identifying all the parties involved in the decision‐making process and modifying strategies for moving into new markets. We spent a lot of time solidifying our standing with these stakeholders, demonstrating our new value proposition (more about that in a moment), and proving our credibility.
The year was “transformational” due to strong operations and innovations based upon customer feedback that will give us the ability to scale the business across North America, particularly in the U.S. During the year, we made three significant changes that position us for future success in the United States:
- We created an entirely new sales/business development structure;
- We strengthened the Company with new U.S. leadership for business development, direct sales, technical sales, and channel sales; and,
- We innovated to create SmartGATE Insights™, a metering and data analytics solution that provides building owners with visibility into their buildings’ power quality metrics.
This last point is especially important since Legend’s entire value proposition shifted from being product focused to providing an entire onsite energy management technology platform. While our legacy and upcoming SmartGATE™ units optimize energy entering a building from the electrical grid, SmartGATE Insights aggregates and analyzes power quality data in real‐time, minute‐by‐minute, providing management with the information via a wireless portal. We believe that Insights’ visibility will not only drive a shorter sales cycle but also provide better clarity about multi‐unit SmartGATE deployments, especially as it pertains to entire property portfolios.
We launched Insights in the last quarter of 2019 as a cost‐effective, stand‐alone device, providing building operators with visibility into what’s really happening within their properties – often for the first time ever – and allowing them to make fact‐based decisions about deploying SmartGATE’s. Insights will also be available in the next generation of our SmartGATE units as well as a retrofit to existing models. We anticipate its contributions will begin in earnest in the second half of the year.
As we move into 2020, Insights has shifted your company from a single product sale to a platform and enterprise sale. Our focus now is scaling our business model by:
- Growing sales in the U.S. with a presence in New York and Seattle. Three additional highly prospective regions have been identified, and each region will have a team comprised of business development and sales and marketing professionals;
- Continuing business development in Canada with direct sales becoming a notable revenue stream that additionally serves as a test bed for sales best practices; and,
- Innovation: customer feedback will continue to drive our research and development to deliver product and programs with unique feature sets that property owners demand.
One additional point I’d like to offer is that going forward, customer decisions to purchase SmartGATE and SmartGATE Insights won’t be driven solely by economic factors. Regulators in the U.S. jurisdictions we are targeting have enacted or are debating laws for greenhouse gas reductions in commercial properties (please refer to our MD&A for more info). Tenant demand for change has also resulted in a shift in the way property owners view greenhouse gas emissions and quality of tenancy. These mandates have created urgency in many boardrooms and executive suites, and data from SmartGATE Insights is the best way that we know to comply with municipal codes and assess individual building needs and shortfalls.
Finally, on behalf of the Board, I’d like to thank you for your continued support. Although we have been through a challenging period, we are confident about our platform, strategy, and market positioning. Our balance sheet remains strong, we have regulatory and building code tailwinds, and we have the right people in place.
Randy Buchamer, CEO & Director
About Legend Power® Systems Inc.
Legend Power® Systems Inc. (www.legendpower.com) is a global leader in onsite energy management technology. We help buildings overcome grid volatility challenges common to utilities around the world. Legend’s industry-proven SmartGATE™ enables dynamic power management of an entire building. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend’s unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.
For further information, please contact:
Steve Vanry, CFO
+ 1 604 671 9522
Sean Peasgood, Investor Relations
+ 1 647 503 1054
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This Press Release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.