OTTAWA, Canada (March 23, 2020) – Intouch Insight Ltd. (“Intouch” or the "Company") (TSXV: INX) (OTCQB: INXSF) today provides a business update regarding the impact on Intouch of the global crisis surrounding COVID-19. The widespread shut down of North American companies in the retail, foodservice and hospitality industries will negatively impact Intouch's recurring service revenues. It is unknown at this time, the extent of the impact, but the expectation is significant until stores across North America can re-open their doors. The Company continues to market and has available to its customers its recurring revenue software products, including its customer experience management platform; LiaCXTM and its forms and checklist automation product; IntouchCheck.
"As one of the largest and fastest-growing companies in our industry, we are taking immediate actions to ensure that, when this crisis is over, the Company emerges in a strong position to service our customers and acquire new relationships," said Cameron Watt, President and CEO.
Intouch needs to remain financially lean and robust during this uncertain time, and the Company has temporarily laid off approximately 50% of its employees. Additional cost-cutting measures include temporary pay cuts across most of its remaining employee base and more substantial voluntary pay cuts by its executive team and CEO. The Board of Directors is waiving its fees for the upcoming quarter. Due to travel restrictions and the need to focus on its current business, the Company has also had to put the process around its previously announced non-binding Letter of Intent to acquire a North American customer experience measurement company (the "Vendor") on hold. Both parties expect that they will be able to re-start the acquisition process when suitable business conditions arrive.
"Despite our ability to immediately implement work from home capabilities to protect the health and safety of our staff, we are unable to isolate our workforce from the crippling disruption our customers are experiencing. During this unprecedented period, we remain focused on delivering on the needs of our customers, which in many cases today means allowing for a temporary suspension of services that we provide. We are operational in all departments and will ensure that the business can deliver on its remaining customer commitments as well as be fully capable of resuming operations as soon as the service industry starts to re-open its doors," said Watt.
"We know that it is a challenging time for families across North America, including our employees, our customers and our hearts go out to everyone. We will do our best to ensure that we continue to communicate openly with customers, employees, and shareholders," said Watt.
Certain statements included in this news release, including those relating to the Company’s proposed transaction, future revenues and expansion, contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company’s current views with respect to expectations, estimates, future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.
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.
For More Information, please contact:
Cathy Smith
Chief Financial Officer
csmith@intouchinsight.com
613-270-7916