- Also reports major progress being made in the Middle East and other key initiatives
globally
- Expects to add more than 10,000 AssetCare™ oil and
gas assets in 2022
- Early outlook for 2022 includes plans to have more than
90,000 connected assets by year-end
SAN
FRANCISCO, Feb. 15, 2022 /CNW/ - mCloud
Technologies Corp. (Nasdaq: MCLD) (TSXV: MCLD), ("mCloud" or
the "Company") a leading provider of AI-powered asset management
and Environmental, Social, and Governance ("ESG") solutions today
announced the warrants issued in connection with the Company's
underwritten public offering originally announced on November 24, 2021 (the "Warrants") have been
approved for listing on Nasdaq. The Warrants are expected to
commence trading on or about February 15,
2022 under the symbol MCLDW.
A total of 2,415,000 Warrants have been issued. Each Warrant
enables the holder to acquire one common share of the Company at a
price of US$4.75 per share. The
Warrants expire on November 29, 2026
and the CUSIP is 582270179.
Update on AssetCare Oil and Gas Growth Worldwide
mCloud also announced today the progress being made on key
global initiatives across the Company.
The Company announced on January 25,
2022 it had signed a Memorandum of Understanding ("MOU")
with Aramco to jointly deliver ESG applications enabling the
decarbonization of oil and gas assets.
Among these are applications to facilitate the automation of
Leak Detection and Repair ("LDAR"), 3D digital twins, connected
worker solutions, and digitalized facility operations and
maintenance capabilities. In addition to the Company's
collaboration with Aramco, mCloud has established relationships
with other oil and gas companies in the Kingdom of Saudi Arabia and abroad,
immediately targeting over 10,000 oil and gas assets for AssetCare
implementation through the Company's ESG-Digital Hubs in
Saudi Arabia and Houston. Most of these are anticipated to be
fully connected in 2022.
Update on Connected Buildings in North America
The Company has begun to connect retail buildings leveraging
advancements in the demand response capabilities originally
unveiled by mCloud on June 9, 2021.
This progress includes buildings in areas served by Con Edison in
New York state.
mCloud is using AI to enable substantial energy efficiency
improvements in commercial buildings with electric vehicle ("EV")
charging stations. Communication with the energy grid allows
AssetCare-connected buildings to optimize energy consumption at
peak times of day, load balancing HVAC, EV, and other major loads
that draw on the energy grid and local energy storage, creating
considerable energy cost savings for customers and helping them
manage the full energy envelope of their buildings.
New buildings in North America
using this demand response capability are expected to be online in
the first half of 2022 with substantial growth in uptake
anticipated in the second half of the year.
Additionally, AssetCare for HVAC and Indoor Air Quality
solutions are expected to see growth in North America as mCloud leverages previously
announced partnerships and engagements to drive new business
development. Buildings already connected are seeing measurable
benefit from the solution and the Company plans to publish case
studies showcasing the improvements customers have seen soon.
2022 Outlook
The Company provided a look-ahead view into 2022. mCloud
operated within the constraints of ongoing pandemic restrictions,
which persisted to the end of 2021. As the Company enters
February 2022, mCloud is now
positioned to accelerate the pace at which it adds new connected
assets as these restrictions begin to ease.
Considering current visibility into recently signed contracts,
master service agreements, the addition of new connected assets for
existing AssetCare deployments, and the anticipated easing of
pandemic restrictions, mCloud expects to deliver C$18 million to C$22
million in total revenue with gross margin between 60% to
62% in the first half ending June 30,
2022. Approximately 80% of these revenues are expected to be
recurring revenues categorized as AssetCare Over Time, consistent
with more modest contributions from AssetCare Initialization
revenues as the Company begins to ramp up growth in connected
assets.
For the second half of 2022 ending December 31, 2022, the Company anticipates it
will be able to further accelerate the onboarding of backlogged
connected assets alongside new customer acquisition and delivery in
tandem with the build-up of ESG-Digital Hubs in Saudi Arabia and Houston, targeting C$25
million to C$32 million in
total revenue with gross margin between 62% to 65%, benefitting
from less sensitivity to fixed costs due to a larger base of
AssetCare Over Time revenue.
Approximately 70 to 75% of these revenues are anticipated to be
in the AssetCare Over Time category following expected pick-up in
AssetCare Initialization revenues as new assets continue to be
added. The Company notes there is potential for further upside
depending on the pace of activity in Saudi Arabia and the Middle East.
On an Operating EBITDA basis, defined by the Company as gross
profit less all direct expenses, mCloud expects to surpass
break-even sometime in late 2022 even with taking on costs related
to listing on Nasdaq.
On a connected asset basis, the Company expects to have more
than 90,000 connected assets at the end of 2022, with a substantial
proportion of these new assets to come from the Middle East and mCloud's new oil and gas hub
in Houston, Texas.
mCloud President and CEO Russ
McMeekin commented on the Company's 2022 outlook:
"Our recently announced Memorandum of Understanding with Aramco
presents major near-term and long-term growth opportunities for
mCloud and will soon translate into new connected assets for us in
the Kingdom of Saudi Arabia.
Depending on how quickly we are able to achieve certain milestones
together with Aramco, we see the potential for significant upside
to our 2022 estimates."
"With the urgent demand for new technologies to meet the rising
bar for LDAR and mitigating methane emissions across the oil and
gas industry, mCloud is well-placed to bring AssetCare to digitize
and connect oil and gas assets no matter where they are on the
planet. We look forward to sharing more about our LDAR activities
in the months ahead. These will be additive to our efforts in
Alberta as we approach the
one-year anniversary of our February
2021 announcement with Invest Alberta Corporation, where we
continue to focus on ESG applications that we see yielding further
material progress by the middle of 2022. We are pleased to see the
Province of Alberta taking steps
to ease pandemic restrictions."
"We are poised to see greater than 40% year-on-year growth in
our business. In a nod to our recently announced partnership with
the Mercedes-EQ Formula E Team in January, we have been working
with automotive dealerships across North
America, with several in plan to go live sometime this
Spring. We are also hard at work bringing onboard new 3D Digital
Twin and AssetCare Mobile connected worker solutions to these sites
around the world. We are already developing new customer
engagements because of this partnership."
About mCloud Technologies Corp.
mCloud is unlocking the untapped potential of energy intensive
assets with AI and analytics, curbing energy waste, maximizing
energy production, and getting the most out of critical energy
infrastructure. Through mCloud's AI-powered AssetCare™ platform,
mCloud offers complete asset management solutions for commercial
buildings, renewable energy, healthcare, heavy industry, and
connected workers. IoT sensors bring data from connected assets
into the cloud, where AI and analytics are applied to maximize
their performance.
With a worldwide presence and offices in San Francisco, Vancouver, Calgary, London, Perth, Singapore, and Beijing, the mCloud family includes an
ecosystem of operating subsidiaries that deliver high-performance
IoT, AI, 3D, and mobile capabilities to customers, all integrated
into AssetCare. With over 100 blue-chip customers and more
than 63,000 assets connected in thousands of locations worldwide,
mCloud is changing the way energy assets are managed.
mCloud's common shares trade in the
United States on the Nasdaq and in Canada on the TSX Venture Exchange under the
symbol MCLD. mCloud's convertible debentures trade on the TSX
Venture Exchange under the symbol MCLD.DB. For more information,
visit www.mcloudcorp.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and forward-looking
statements are not representative of historical facts or
information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives,
many of which, by their nature, are inherently uncertain and
outside of the Company's control. Generally, such forward-looking
information or forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or may contain statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "will
continue", "will occur" or "will be achieved". The forward-looking
information contained herein may include information related to the
commencement of warrant trading on Nasdaq, the timing of the
delivery of AssetCare oil and gas implementations, plans to scale
oil and gas connections through its ESG-Digital hubs in
Saudi Arabia and Houston, the connection of buildings using the
Company's demand response capability, the publication of customer
case studies for the Company's HVAC and Indoor Air Quality
solution, and the Company's outlook on revenues in 2022.
By identifying such information and statements in this manner,
the Company is alerting the reader that such information and
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
information and statements.
A more complete discussion of the risks and uncertainties facing
the Company appears in the prospectus supplement, the base shelf
prospectus and the registration statement and in the Company's
Annual Information Form and other continuous disclosure filings,
which are available on SEDAR at www.sedar.com and EDGAR at
www.sec.gov. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in the forward-looking information
and forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and
forward-looking statements contained in this press release, the
Company has made certain assumptions. Although the Company believes
that the assumptions and factors used in preparing, and the
expectations contained in, the forward-looking information and
statements are reasonable, undue reliance should not be placed on
such information and statements, and no assurance or guarantee can
be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information and
statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company does not undertake to update
any forward-looking information and/or forward-looking statements
that are contained or referenced herein, except in accordance with
applicable securities laws. All subsequent written and oral
forward-looking information and statements attributable to the
Company or persons acting on its behalf is expressly qualified in
its entirety by this notice.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE mCloud Technologies Corp.
