Imex Systems Inc. (TSXV:IMEX) could have first-mover advantage in cannabis governance technology, which should appeal to all cannabis investors
SmallCapPower | October 4, 2018: Cannabis is expected to be a multi-billion industry in Canada once recreational legalization occurs later this month. As with any sector, but especially one that is highly regulated such as marijuana, good governance will be the key to any company’s success and is a factor that should be taken seriously by all cannabis investors. As Licensed Producers are set to compete with one another based on product and price, companies providing cannabis industry infrastructure, as well as tools to improve governance, could become the big winners in this space. Governments will be reliant on technology to effectively regulate this sector, one that has serious health implications for its citizens. To that end, a company such as Imex Systems Inc. (TSXV:IMEX) should have obvious appeal.
Imex Systems is a Toronto-based software company providing products and services to governments, municipalities and public authorities in Canada and other countries. The Company has been involved in the public sector since 2001 and developed its first integrated e-Government system in 2005. By recognizing and catering to all components of government dealings, Imex Systems offers a 360 degree relationship between the government and its citizens. The Company’s smart offerings include Smart Government, Smart Payments, Smart Customer Service, Smart Citizen Communications, Smart Operations, and Smart Infrastructure.
Imex Systems has gamut of product and service offerings such as iGov, iCity, iPay, miGov, miCity, miPay and iDocs etc. Also, the Company recently announced it is entering the cannabis space through its GOVCANN platform, which will provide necessary content and information to medicinal and recreational cannabis users. The Company will be collaborating with Blockgration Global Corp. for increasing its base and revenue growth.
Broad product and service portfolio
Imex System has diverse offerings of products and services aimed at revolutionizing how governments and cities function around the world. Smart Governments use technology to better serve their citizens through efficient operations, whereas Smart Cities are cities that become livable, workable and sustainable by using smart technology.
Imex’s product suite includes iGov, iCity, iPay, miGov, miCity, miPay and iDocs, whereas service offerings comprise of management consulting services, such as Development of e-Government Strategies, Enterprise Architecture, etc., as well as IT services such as Business Process Re-engineering/Automation, Testing and Quality Assurance, etc. The services are provided on all major software and hardware platforms including Microsoft, IBM, Oracle, and HP.
Imex’s flagship product, iGov, is a digital government platform aiding all levels of governments for delivering services and information and supporting payment processing through multiple channels including the Web, Mobile, IVR, Contact Centers, Over the Counter and Kiosks. The Company provides the platform via on-premise licensing as well as a cloud services and is extending it with recent technologies in Blockchain, Artificial Intelligence, Big Data Analytics and Internet of Things (IoT).
iCity, built on the iGov core framework, helps cities become smart by delivering services and managing city operations and infrastructure in an effective manner. Supporting IoT, iCity assists in monitoring and controlling virtually every device in the city.
Imex Systems’ payment framework, iPay, is an integrated multi-channel, multi-mode payment system designed specifically for governments to receive payments and better manage revenue collection. iPay also makes easy tax and fee collection by field staff using mobile devices. The payment framework complies with PCI data security standards.
Additionally, other products – miGov, miCity, miPay, iDocs – as the name suggests, are mobile-based applications, which provide convenience for customers in terms of obtaining information, accessing services and making payments.
Unique GOVCANN platform
Imex Systems is venturing into cannabis governance technology by planning to launch a comprehensive platform integrated into IMEX’s iGov portal called GOVCANN, which will offer necessary content and information to medicinal and recreational cannabis users. As cannabis purchases via the Internet are expected to begin on October 17, 2018 in Ontario, the Company is gearing up to tap this market segment through its unique offering. Ontario municipalities and their citizens will get updated content on laws, procedures, and processes for cannabis purchases through this platform.
GOVCANN can be a central interface for cannabis news with customizations depending on the municipalities. After its implementation in Ontario, the Company aims to expand this platform to other Canadian provinces where a retail recreational sales model has been adopted instead of online sales. Using artificial intelligence and data analytics, the GOVCANN platform will provide specific and relevant content to users based on geography and location.
Imex Systems has started talks with various licensed cannabis producers for integration of this system into their framework. Since this is a highly-regulated industry, Licensed Producers and sellers in Canada will be benefit from having closer ties with governments though this platform. Imex plans to seek out strategic capital in order to facilitate this initiative.
Partnership with Blockgration Global
Imex is also considering collaborating with Blockgration Global Corp. (BGC), a Canadian mobile wallet and blockchain company and has signed definitive agreement for this purpose. The partnership is aimed at leveraging both the company’s strengths and assets to augment offerings and expand market penetration and revenue growth. Imex’s iGov platform will be integrated with BGC’s mobile wallet and blockchain platform, thereby creating a distinct payment platform.
The initial proof of concept will be launched in Guyana after BGC’s customization of Imex’s iGov platform. After the initial launch, the product will be expanded into other CARICOM countries. Further, integration of Imex’s iGov platform with BGC’s mobile wallet is planned for deployment in Nigeria. Both companies have decided on a revenue-sharing arrangement on case-by-case basis depending on which partner has primary contract with the customer.
Imex Systems stock looks promising on the back of a wide range of products and services offered to its clients coupled with its foray into cannabis governance technology. Imex’s success, though, will be tied to implementation. Its stock trades at a market capitalization of C$14 million.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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