AI Security Firm With 'Almost Unlimited Upside' Per Technical Analyst

Recently, Canada-based retail technology and marketing company VSBLTY Groupe Technologies Corp. (VSBY:CSE; VSBGF:OTC; 5VS:FSE) announced it had signed a non-binding letter of intent to acquire Shelf Nine, a leader in retail media networks, providing brands and retailers specifically targeted digital media advertising and other customer communications content delivered at the point of purchase.

The definitive agreement is expected to be finalized over the next 30 days. 

In light of this news, CEO and Co-founder Jay Hutton said, "This acquisition is synergistic with VSBLTY's vision of the retail advertising segment . . . Shelf Nine's integration with our computer vision analytics technology is a win-win for both companies. Operating as a wholly owned subsidiary of VSBLTY, Shelf Nine and VSBLTY have the opportunity to further leverage each company's core competencies and further penetrate the retail media market, estimated to be worth US$160 billion by 2027. In addition to both companies benefiting from recurring SaaS fees, they also generate added revenue from content development and media sales"

VSBLTY  is generally known for the variety of smart applications it offers to drive brand engagement and put marketing insights in motion.

At its core, the company, which is headquartered in Philadelphia, is engaged in Proactive Digital Display, which transforms retail and public spaces as well as place-based media networks using software-as-a-service (SaaS)-based audience measurement and machine learning.

This work allows retailers and brand builders to identify customer habits and even individual customers, thereby providing uniquely tailored multimedia experiences from end-to-end along the buying journey in brick-and-mortar locations with greater fidelity than one would experience online.

By utilizing facial recognition, age, and gender, VSBLTY's proprietary technology can effectively enhance retail brand engagement and measurement through customized ads on in-store digital displays at the point of purchase in real-time. This technology has proven to increase brand sales by over 25%.

VSBLTY's main products include DataCaptor, VisionCaptor, VSBLTY Vector and VSBLTY Metrics. DataCaptor leverages camera and sensor technology through AI tools, enabling real-time analytics and anonymous audience data. VisionCaptor Content Management System provides a variety of capabilities for bringing proximity-aware, interactive brand messaging to life on any digital screen.

These two key technologies are deployed together to create custom brand experiences for users who follow them throughout connected retail experiences.

However, fewer people are aware of VSBLTY Vector, the company's security-focused software, which provides facial recognition and weapon detection.

The Catalyst: Access Control Rollout for Major Mexican Customer

On April 8, VSBLTY announced that a major Mexican customer had successfully deployed the firm's VSBLTY Vector solution across a network of 40 CCTV cameras to automate access control at the customer's two-story headquarters facility, replacing security cards and allowing the free flow of employees while rapidly detecting and alerting security forces of any unauthorized or potentially bad actors.

According to Insider Intlegence's Retail Media Ad Spending Forecast H1 2023, "We expect advertisers to pour more than US$45 billion into retail media ad spending in 2023." The report projects that spending to expand to some US$ 106 billion by 2027.

As the announcement explains, "Previously, traditional access control systems have been key cards, key fobs, or digital passwords, but each has its own security limitations."

"Employees now enter their workplace without physical checkpoints while CCTV cameras and AI-backed software verify their status. If the system identifies an unauthorized person, building security is notified immediately."

"To ensure a safe workplace, this program provides a continuous search for unknown persons based upon an enrollment database of employees and other authorized personnel. Each day, approved visitors to the building are automatically logged and entered into the firm's system."

"The software is also not only capable of identifying a stranger (whose image is not in the records) attempting to enter an authorized area but can identify a terminated or previously problematic employee whose image is in the system. This advanced program can also offer additional security, including weapons detection and suspicious behavior to trigger alerts."

As for other catalysts, Hutton told Streetwise there are a couple of catalysts to look out for next quarter.

1. VSBLTY will be entering into a new market as an extension of the current relationship with ABInBev. 
2. There is traction in Saudi with VSBLTY's joint venture in the region to launch the first large-scale retail media network.
3. VSBLTY will continue tractions with partners in religious institutions and schools with the VSBLTY security AI solutions.

Why This Sector? Expanding the Value of AI

Using AI to recognize, quantify, and collate unknown users, such as the random collection of shoppers who visit a brick-and-mortar retailer in a given day, is already a valuable market segment.

According to Insider Intlegence's Retail Media Ad Spending Forecast H1 2023, "We expect advertisers to pour more than US$45 billion into retail media ad spending in 2023." The report projects that spending will expand to some US$ 106 billion by 2027.

With automated advertising solutions designed to target specific demographics in active retail spaces, VSBLTY is positioning itself to capture a significant share of that rapidly expanding market. However, by repurposing its core AI tech for security work, it is also gaining access to a huge secondary market no other retail advertising networks are addressing.

According to a report from Future Market Insights, "The global building access control security market is expected to secure a market value worth US$ 11.89 billion in 2023. During the forecast period from 2023 to 2033, the market is likely to display a CAGR of 14% while garnering a value worth US$ 44.2 billion. The increasing demand for smart buildings and infrastructure will be driving the demand for the building access control security market in the future."

The report goes on to specify that zero-touch access control solutions, such as those offered by VSBLTY, are in particular demand in a post-pandemic market. By deploying its core technology across these disparate fields, VSBLTY has positioned itself to grow in a multi-faceted manner as these markets for novel AI technology mature.

Why This Company? Multiple Markets for AI Automation

As the company is situated at this valuable intersection between retail advertising and access control, it's easy enough to market as making customers' existing video cameras "smarter" by providing real-time monitoring and alerting. This ability to install using legacy technology is a powerful selling point for clients who have existing and expensive relationships with traditional security hardware vendors.

"Employees forgetting passwords, losing keycards and fobs can be both an administrative nightmare and a financial burden for corporations," explains VSBLTY Co-founder & CEO Jay Hutton. "This deployment of our AI-based Vector product for access control and building security alleviates many issues inherent in traditional access control systems."

"We anticipate the success of our advanced security system in Mexico will lead to many other installations worldwide," he concludes.

Why Now? ‘Almost Unlimited Upside'

On August 1, Technical Analyst Clive Maund published a detailed analysis of VSBLTY quite optimistically titled "This Tech Co. Has Almost Unlimited Upside."

In it, he explained that "Whilst it is generally unwise to go against the prevailing trend when it is still in force, there are exceptions when the volume pattern strongly indicates that reversal is imminent, which is the case with VSBLTY, and the case for buying Visibility is stronger still because the price of the stock is so close to zero that there is almost no downside — as with an option you can only lose your stake, whereas the upside is relatively unlimited."

On August 1, Technical Analyst Clive Maund published a detailed analysis of VSBLTY quite optimistically titled "This Tech Co. Has Almost Unlimited Upside."

"On the 26-month chart, we can see the horrendous bear market in Visibility that has taken it from a peak at almost CA$2.00 in November 2021 to bottom at a miserly 5 cents a couple of weeks ago.

The reason that we are interested in it here, apart from the fact that it can't drop much more because it is almost worthless, is the appearance of persistent strong upside volume last month and especially this month that has driven the Accumulation line steeply higher," Maund explained.

"This is viewed as evidence of determined Accumulation by a person or persons or an entity who consider(s) the company to be grossly undervalued here and might be the prelude to a takeover."

"VSBLTY is obviously a speculative play here that is only suited to more experienced investors and traders who understand the risk inherent in this setup. Could the flurry of buying interest last month and this be simply a ‘flash in the pan' that leads to nothing and the downtrend continue? Well, it could, but that is considered unlikely."

"Instead, we recognize that you could lose your stake buying here if it continues even lower and maybe the company goes bust, but at the same time, if it does recover, you could make many times your investment, and since the technicals indicate that the chance of this happening is better than 50:50 it is considered to be a worthwhile calculated risk."

Ownership and Share Structure

According to Reuters, 3.21% of VSBLTY's stock is held by management and insiders. Director Thomas Hayes has 1.10%, with 3.67 million shares. Co-founder, CEO, President, and Founder Jay Hutton has 0.52%, with 1.74 million, and CTO Gary Gibson has 0.40%, with 1.34 million.

3.30% is with strategic investor Actus Interactive Holdings Inc., with 10.97 million shares. 

0.25% is with institutional investors. Palos Management Inc. is the largest institutional shareholder at 0.21%, with 0.70 million shares.

The rest is with retail investors.

As of June 28, 2022, VSBLTY had a market cap of CA$82 million, with 209,753,999 basic shares outstanding, 47,256,115 warrants, and 14,440,834 options, for a fully diluted base of 271,450,948.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of VSBLTY Groupe Technologies Corp. 
2. Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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