Welcome to beyond the press release a production of AGORACOM in which we take the time to speak with CEOs right after they put out important news with us today with really big news David Lucatch CEO of KABN North America that’s KABN trades on the CSE under the stock symbol KABN a lot of you’re going to be due to the story because just listed in the summer and still getting going for those who do know who don’t know what the what the company is in need of that explanation Facebook showed us that sharing our data became a major issue a real problem and that spurred on some major legal changes to protect our data specifically GDPR in Europe and CCPA legislation out of California more is coming so cabin does generally is they turn the problem of data privacy into a profit for individuals like you and me while also providing big enterprises with the new compliant business model all we’re they’re not where they’re where they’re not contravene these rules yet still be able to to market us on just this morning here’s the big news cabin North America and Boon rewards such a large cash back and rewards program spending 11.5M Canadian customers of major finances divisions insurance providers and real estate service David that’s a Biggie welcome to the show thanks sure is great to be back Hey so I mean the president the the headline seems really big you’re talking about a rewards program 11 a half 0 Canadian customer that’s really big as it is and did you talk about major finance the 2 institutions so on so forth how big is. Is this for the company is is taking us over a hump well I think George it’s a really important milestone for the company I mean for those that are familiar with us know that we have liquid avatar or cabin idea KABN KASH program but about 9 months ago we started talking to Boone about creating private label solutions for them using our cash back engine so for us it’s it’s it’s sort of a new surpass a revenue opportunity for us because we’re gonna be powering other systems and bill is just our first customer in the spectrum there’s others that we’re talking to who want to add cash back rewards for their customers it’s an aids it’s a loyalty and incentive program I mean you could add AGORACOM. Now let me ask you a question because somebody hold might be thinking you’re the story sank more cash back rewards a lot of people do that well what’s so special about this cash back rewards and Boon need KABN it appears you would think they could have done it all with other big providers of last several years well I think cabin is very customizable program we’ve we’ve started from the perspective that again it’s all data driven from the consumer side I mean we’re sort of a plug and play model it’s it’s it was very easy for boon to engage with us and and get the product to work their way and it makes it and they’re already doing things that are sticky in that space with hardening programs you know getting money back when you spend money in a merchant through visa master card so this was an easy out on because it adds basically vertical opportunities for BOON and it adds a little more loyalty and engagement our programs so that they can generate more revenue all right so in order for us to fully understand this let’s walk this through a little bit who’s a boon what do they do how how are you monetizing along with them on this how are you reaching those 11.5M people was super I can start there Boonis a private company so won’t talk too much about them they’ve got their own profile that the press release you can visit the website but as we understand it focuses primarily in card linked programs are you know you go to use a card at a merchant and you get some kind of reward could be I get the not necessarily for good but a good example would be you get a couple pennies off your gas per leader at a at a gas station or you get a reward when you buy coffee so that’s direct on your card program in a natural evolution is being able to shop online and getting some type of incentive and we were in the right place at the right time building the right products and for us it was. As in a diversion because we had built the entire platform and we knew that there would be a private label opportunities for building it’s a very cost effective way to our usual services for their customers and and for the customers it’s a way to get more rewards so it’s you know symbiotic or a win win for everybody in the ecosystem and for cabin it opens up new revenue opportunities that help fuel informed our core programs so if George is already a boon card link customer. I presume we what’s going to happen now is George gonna get communication from boon and and they’re gonna say Hey George you begin these cash back rewards programs when you physically shop now you’ll be able to do that when you shop online using that same card is that essentially in them in a basic form. If they had it except this one bill provides services to our organizations and if someone goes to the bin website you can see the major brands that been works with so you might have a a product and then provides the underpinning services so this will just be another they’re underpinning services so it won’t be branded been it would be Brandon the eventual real estate firm or major financial institution right she program but they’re the backbone to bank a I haven’t seen their sights on a want to name a bank there but they’re the backbone to big Canadian bank Hey and so big bank because the bank a is going to contact me and say Hey you’ve been using this bank ecard ever worrying cash back how star use that online I’m gonna give you even more cash back and rewards exactly so simple what simple but powerful very simple and powerful it leverages we’re you know we’re sort of the provider of the technology and all the relationships I mean I think we’ve got just under including candy US radio just under 250 major merchants when I see major merchants someone can go to cabin cash.com and see the merchants have been included Nike, Walmart fanatics I mean just major adore = our programs will continue to grow and continue to expand and we’re looking at expansion in other areas as well that’ll give not only cash back but down the road we can add and and a missing we will but we can add you know special deals on merchandise so it might be we have X. amount of Base of argument and persuades a persuasive argument for the millennial crowds that they love these were more love this kind of stuff I mean they’ll shop online and do this if there’s value for them. So this isn’t just an idea a partnership let’s see how it goes will throw the wall see what sticks because the quote here is as follows from the press release Boonen KABN KASH has been working on this project for several months yeah and are pleased to report that is already start integration and testing programs are set to begin pilot rollout during this quarter so we’re in October that means before the end of the year. Pilot rollouts are good to start rolling out so do you expect to start the young those pilots what the saw a pile up that goes to the bank. Boone was our first client as we’re building having cash we were simultaneously billing to the private label or white label program that’s now active and ready it’s it’s not a. it’s not a sort of a beta it’s ready to go out we can plug in and customize for a for a firm very quickly so might have you know a multiple installations because each one will be private labeled so for us we’re just ready to go out you know our mandate a cabin was very simple and you know get our products ready in in Q. 3 and be ready for revenue in Q. 4 and we’ve you know we’ve met that mandate and even though you know the macro environment spin a bit crazy the the you know the the micro cap markets have been crazy we have been focused on delivering against our mandate it’s very important for us to do so because ultimately you know like whatever Turner other products are have significant opportunities for traction downfall to companies like cabin that want to reach millions of people and create tens or 0 customers as they become super expensive to market and use the downfall is raising money are you spending $100 to acquire George as a customer and you’re hoping that down the road George can be worth $500 but you really have a cash flow problem until you can build that up what I really love about this relationship with Boon is that It doesn’t sound like there are any marketing dollars on your end that’s all gonna be taken care of by Boon and their and their tier one finance insurance real estate companies how big advantages to have you know that kind of that kind of partner were you don’t have to worry about all right David picked kicking $1000000 the strangle get 10000 customers out of it I mean it’s massive but I mean we built other programs like this before so it is a leverage program right we’re we’re we’re always striving for what we call universality how do we get have universal application in the hands of consumers and by private labeling this program we download the responsibility for marketing and promotion to bin and its customers and and and they already have relationships with their customers so it’s it’s an enhancement it’s a value proposition so you know it it it our cost of marketing is effectively 0. I will ask you a question that you may not know the answer to but I think it’s worth asking which is Conversions all you know eventually this could be marketed not not right away not this quarter pilots are going to start rolling out but you know if those presumably for 2021 yeah there’s gonna be some real serious you know work going on do you have any sense for what the conversion rate be if they’re if they’re loving half 0f paying customers are using this to real world you have a do you guys have any sense of that or is that there’s a premature I think it’s a bit premature but I think we can think about it in real world terms I don’t know about you but you know I’m spending less time shopping in in in various wars and shopping online right you know I might be buying a little bit less but I’m still buying online is still on you know I see Amazon packages come to our family you know a couple times at least a month so we’re saying you know we’re seeing a lot of online purchases and and so at the end of the day. You know the numbers that are affecting the market places is the C. averages of you know a couple $0 a month people are spending online so if you can take a small portion of that multiply that by the number of people and my most unhappy conversion amount it the numbers become so massive overnight now this is the only program remember we’re not only running private label programs but we’re also running you know the liquid avatar program accounting cash so it becomes sort of a geometric progression you know if we had more more private label programs we had more more constituents to the table we can also it also gives us an opportunity leverage better deals with our suppliers right so we get more cash back because they have a lower cost to reach consumers so if you think about cash back in it’s a transference of cost if everybody can get into an ecosystem there’s less cost to reach the consumer knows marking dollars can be used as incentives so it’s it’s not a complicated situation if I’m AGORACOM I’m putting up a cabin to try and bring in people to spend money I would much rather say all right you’ve already got okay cabin Boon you are gonna love point 5 look for every person bring in sure I’ll give them 0.5 percent back cash back is I forgot I’m or getting the customer right so I’m just paying out a piece of the pie as opposed to taking a risk of me going out marketing by myself and spending 1000’s not knowing what I’m going to get for that spot right and the and the numbers of change right there’s there there’s been downward pressure on on percentages because everybody shopping online so that the cost of getting a customer you know has been last but on but at the end of the day you know it does become a bit of a war on I mean we have Walmart on board and and and I mean so there’s lots of our people shop at Walmart speaking a big pitch against Amazon to do things so it’s really finding the right merchants continue to find right merchants and we’re also getting a lot of them what I would say. He is unique market merchants that they’re coming to the table be especially based on some of our gamification liquid after sourcing some unique opportunities come to the table so and all are all our partners will benefit from that so we get a you know a unique let’s say memorabilia store coming to the table that is limited inventory that might be that might have a very small market by still. You are at your users you might be sports fans or come as you can see my background comic book fans so there’s a lot unique opportunities here but what we’re saying is is it you know it follows our our philosophy. That that the user should benefit from ownership of their data and their and their identity and whether it’s a private label program or not we’re giving consumers the opportunity to profit from the use or the threat of a crate and additional value propositions every time you shop urgently do something and that that follows our core philosophy. Last question for you what is the rest of the year look like because it sounds like you’re starting to really ramp up what is the rest you look back what should which are the market be looking for coming out a cabin well you know we we you know why we’re getting ready to ramp up our Q. 4 we’ve been relatively quiet we don’t expect to be very quiet for anymore so you’re gonna see a lot of a lot of news there’s there’s some really cool projects on the go we’re you know we’re seeing a huge huge movement in the identity layer of the internet got remember when the internet came about the idea of an identity was not included so is becoming a very very big part of the online equation especially with more online sales there’s more identity fraud and if you can you know you can end up in the body on the problem of identity fraud it’s it’s it’s a big issue so we’re you know we’re actively engaged in in in sort of the mainstream of of what major corporations are doing and will be on we’ll be bringing out some answers for that very shortly yeah there’s there’s no doubt that this is just the beginning and and what you guys doing is great and and this is great third party validation and my books at the end because it’s one thing for cabin as say yeah we got a great program yeah we got a great program and it’s but you really you really don’t know at the end of the day and it’s great to see that someone like Boon says now is a great program but I also have to infer from that that it’s technically smooth than it all runs perfectly because that’s so important when it comes over the digital right right this is big can’t wait to see which pilots rollout I do have 5 times during this quarter but I would encourage you to get over the blue website just to see who their merchants are then they’ll start playing cabin roulette as to which. One of these you know which one of these customers is gonna be part of the up the pilots congratulations David do you the entire team thank you George really appreciate it you were watching David Luctach CEO of KABN North America trades on the CSE and the stock symbol K. A. B. N. it’s a really new story so when you do your due diligence you’re really getting and and on the ground floor of 2 things the ground floor of cabin clearly because it’s only been a few months public and the ground floor of this whole idea of owning and profiting from your own personal identity guys that’s gonna take off this decade and that’s because the legislation is demanding it it’s not a case of David’s going to try and change people’s habits legislation is demanding that is that consumers have better control their privacy and be able to actually profit from the in KABN is way ahead of that of that paradigm shift so get to a more calm get to the camp to get to the cabin hub read the profile to really get an understanding this we know it’s a new concept it really neatly lays it out there and then go to the website to do you’re really deep dive and hopefully found your next rate small cap company thanks everyone have a great day the next time.
