WATERLOO, ONTARIO / ACCESSWIRE / April 21, 2020 /SponsorsOne Inc., (CSE:SPO)(FSE:5SO)(OTC PINK:SPONF) the Company that makes small brands BIG through large, engaged, authentic communities of influencers that buy and support the brands they love, announces the arrangement of a USD$5,000,000 Letter of Credit (“LC”) to be used as a payment guarantee for Brand orders, potentially supporting up to $100 million annually of purchases from Vendors.
“As we begin to scale small brands, we recognized the challenge has been capital to fund the manufacturing of products against Retail and Wholesale orders,” states Myles Bartholomew, CEO of SponsorsOne. “We can now place a Letter of Credit with the Vendor’s Bank as a form of payment guarantee, taking advantage of extended payment terms – essentially, the vendors are financing our orders.”
The LC will be issued from a major Canadian Bank and transferred to the Vendors Bank acting as a payment guarantee. The LC will extend the payment terms from 30 days to 45 days. Typically the National Retailers and Wholesalers pay within 35 – 37 days, allowing us time to pay the Vendor before the 45-day payment guarantee expires. The cost of the facility is 3% for a 90-day term, and SPO expects to turn the facility two times each term. The LC’s effective cost is 1.5% against orders. Compared to purchase order factoring at a cost of 8-15%, the LC provides a significant commercial and financial advantage for SPO and its shareholders.
About SponsorsOne Inc.
SponsorsOne is the leader in the next evolution of digital marketing through influencer marketing, storytelling, and digital-commerce with the SponsorCoin platform and its highly scalable – smart contract-based digital-currency. Combined, this allows brands to build and manage exclusive and highly engaged communities of influencers (from pro to micro-influencers) within the social realm. The SponsorCoin platform provides for data-driven marketing campaigns that will change the way brands connect with their customers. SponsorCoin is a tool for brands to inspire real movements around their products and services in which their most valuable customers become their best salespeople, producing far higher ROI than current social media advertising methods. SponsorsOne, through its wholly-owned subsidiary, SponsorsOne Media Inc., provides full creative and Brand building/management services to all our Brands as well as manages the influencer communities for each Brand. If the Brand wants to get big – fast, our wholly-owned subsidiary S1 Brands Inc., will build a wholesale/retail distribution channel for the Brand acting as a master distributor. S1 Brands provides sales and marketing on behalf of the Brand to its vast network of national wholesalers and retailers and provides purchase order financing to assist the Brand in fulfilling every order. Ownership of the Brand combined with distribution, digital marketing innovation, and capital is the winning formula for the next billion-dollar brand.
ON BEHALF OF THE BOARD
Gary Bartholomew, Executive Chairman
To learn more, please visit www.sponsorsone.com
The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this Press Release.
This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this news release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology, are intended to identify forward-looking statements and information. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks:
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• the need for additional financing requirements and access to capital, reliance on key personnel
• the potential for conflicts of interest among certain officers or directors with certain other projects
• the volatility of the volume and price of the Common Shares, the failure of the business strategy, the integrity of the Company’s patents and proprietary intellectual property and competition.
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THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
SOURCE: SponsorsOne Inc.
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