If you aren't paying attention, you probably missed it.
Tiny C$55 million market cap technology company mCloud Corp.'s (MCLD:TSX) asset management solutions combine internet-of-things (IoT), cloud computing and artificial intelligence ("AI"). It manages all that through its service called AssetCare.
This is an AI-enabled service that connects to any IoT enabled device. The company uses AssetCare to improve energy efficiency for giant companies like Starbucks and Bank of America. It provides intelligent maintenance services to everything from wind turbines to natural gas systems. However, the application of AssetCare is nearly unlimited.
The applications of AssetCare continue to grow. mCloud closed $5 million in contracts for its services in the first week of December 2020. Those deals are in wind, communications and oil and gas. But the next big use for AssetCare is in a new area: building air quality.
Air quality in buildings is under new and intense scrutiny, thanks to the Covid-19 pandemic. A group of 239 international scientists published a letter in support of reducing aerosol particulates in the work place. The report prioritizes air quality and ventilation monitoring.
William Bahnfleth, chairman of the American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) Epidemic Task Force, put out a statement regarding the need to change and monitor air quality in buildings:
Key elements of a strategy to limit the spread of the COVID-19 virus are to perform needed HVAC system maintenance, including filter changes, and to run HVAC equipment, prior to re-occupancy.
Air control and quality is critical for reopening buildings. That's a huge opportunity for mCloud's AssetCare. AssetCare's AI can manage connected HVAC systems for air quality. It can provide a high standard of quality and assurance, which customers in New York and California recognize already.
Dr. Patrick O'Neill, mCloud's President for North America had this to say:
This set of ten AssetCare subscription contracts is expected to be the first of many for mCloud in 2021. Businesses across New York and California are struggling to find an easy-to-implement solution to help them be compliant with new health regulations and reassure their customers and employees their buildings are safe—both are now required to get these thousands of businesses back to work.
mCloud's AI-enabled Connected Buildings offering is the easiest solution for these operators, period. The unique and compelling economics offered by AssetCare and our partnership with local providers allow us to offer an unbeatable solution to these businesses who now have no choice but to adapt.
The list of new air quality customers includes high-profile restaurants, car dealers, gyms and other multi-location businesses in New York and California. There is no question that the list of new clients will grow. AssetCare can provide a major improvement in reducing the spread of Covid-19 and other airborne contaminants through improved maintenance and air quality monitoring.
On December 22, 2020, mCloud announced ten commercial buildings in New York signed subscription contracts with AssetCare.
AssetCare for Connected Buildings combines comprehensive air quality solution with IoT- and AI-powered building management. That results in both operational and energy efficiency improvements. The resulting cost savings help offset the cost of the service.
A huge benefit for clients is that AssetCare delivers direct, measurable business results. And the market for this service is already growing rapidly as state governments look for ways to reopen businesses in a safe manner.
In addition, the company just raised $4.7 million to pursue new opportunities for its AssetCare platform. That's why mCloud is a technology stock you should review for your portfolio. Its AssetCare platform is changing the way many companies do business.
--Matt Badiali
Matt Badiali is a geologist and independent financial analyst. He spent fifteen years researching and writing about great investments inside the natural resources sectors. He can be reached at www.mattbadiali.net.
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