CORPORATE INFORMATION JUNE 1997
TRADING SYMBOL: CLE.V LISTED: VSE
ISSUED AND OUTSTANDING: 12,080,027
RECENT PRICE: $0.50CDN/$0.36USD
FOR MORE INFORMATION CALL: 1-604-685-6465 or FAX 604-688-4881
E-MAIL: cancall@netcom.ca OR ECARDEY@PRESIDENTSNET.COM
Highlights 1997
1. Cancall begins marketing of the DebitLink communications/POS (Point of Sale) system in Hawaii to GTE and other selected high volume users.
2. Cancall enters into exclusive marketing licensing agreement with Sims Communications (SIMS-NASDAQ) granting Cancall the rights to market the DebitLink system in the USA, Canada, and Europe.
3. Cancall acquires $1.3 million in DebitLink communications/POS systems and Instafone automated cellular rental systems in exchange for Cancall preferred shares.
4. Cancall negotiates agreement with Novacom Inc. of Los Angeles to sell airtime and market Cancall's leading edge Debit phones in their California, and Hawaii markets.
5. Cancall enters into negotiations for joint ventures to rent cellular phones in Las Vegas, Los Angeles, San Francisco, Honolulu, San Diego, Dallas, and Washington D.C.
Highlights 1996
1. Cancall opens cellular prepaid/rental locations in Las Vegas, Los Angeles, San Francisco, San Diego, Washington D.C. Pittsburgh, Philadelphia, and Honolulu.
2. Cancall's superior cellular phone rental technology allows users to save 30%-40%, dial direct internationally and receive an accurate real-time bill.
3. Cancall enters favorable agreements with AT&T, Bell South, Bell Atlantic/NYNEX, GTE and Sprint to provide cellular, long distance and international airtime for rental and debit programs.
4. Cancall completes $1.63 million dollar European convertible bond offering and European institutions purchase 40-45% of Cancall's shares through the market.
MISSION
Cancall Communications - "Cancall" was founded in 1994 with the mission of:
"Becoming the largest provider of pre-paid communications and financial
products in the world by the year 2000"
ORGANIZATION
Cancall Communications is currently doing business and providing services in: Las Vegas, Hawaii, Los Angeles, San Diego, Palm Springs, San Francisco, Miami, Tampa and Boca Raton, Fl, Washington, DC, New York City and Vancouver, BC.
Cancall Communications is a public company listed and trading on the Vancouver Stock Exchange (VSE) under the symbol CLE. The Company is currently seeking a listing on a more senior stock exchange. The company currently has 12,080,027 shares issued and outstanding including 750,000 escrow shares.
BACKGROUND
Cancall Communications through its joint venture relationships and strategic alliances has positioned itself to be the nations leading provider of pre-paid products to the ever-growing market segment termed "credit challenged" by corporate America. With an emphasis on communications products, but not limited to this, Cancall management envisions unlimited growth as the world gets closer and closer to the one true universal currency, "electronic plastic".
PRODUCTS
a) DebitLink Point of Sale Terminals (POS)
In the US, there are nearly 3 million specialty retail stores, of which only 100,000 are currently offering ATM/POS, debit payment options to their customers. Through our proprietary DebitLink terminals we will offer additional income sources to the retailer by providing a full pre-paid product line, such as long distance calling cards, gasoline cards, Value added cards or Affinity cards.
Our DebitLink terminals will be able to process ATM cards, credit cards and cash sales as well as do automated check verification. What separates the DebitLink terminal from all others on the market, (i.e. Verifone, Verifax, etc.) is leading edge proprietary software which enables it to activate and recharge Cancall pre-paid products on a "real-time" basis. Because of this innovation, the vendor does not have to pay in advance for "live" or preloaded products, such as prepaid calling cards.
The DebitLink system allows Cancall to supply its customers with inactive and valueless cards which have a value and a PIN number determined by the DebitLink terminal only at the time of the sale. After the customer activates the card, funds are then automatically electronically removed from the customer's account (ACH) and sent to the settlement bank for disposition.
Benefits for the business owners are: consistent return of pre-paid customers, lower processing costs, new profit centers, direct deposit and the elimination of bad checks.
Benefits for consumers are: convenience, cash advances, simple check cashing, direct debit from checking account, lower telecommunications costs and anonymity.
Benefits for Cancall are: no risk of bad debt, total inventory control, earnings on every single transaction done on the DebitLink machine no matter what the product is (i.e. prepaid calling card, cash advance, retail purchase, prepaid gas card, etc.). Additional proprietary features of the DebitLink system are that it activates all pre-paid products in "real-time", allows for implementation of loyalty programs (Affinity) and is already SMARTCARD upgradeable, a market currently estimated to be 1.2 billion cards by year 2001.
Inactive and valueless cards are provided to each merchant with each DebitLink terminal. Once the customer determines what product he wishes to purchase, the merchant then determines each card's value by activating it through the DebitLink terminal, which provides a security code and unique algorithm. Because cards are activated as sold, theft of live or pre-activated cards is eliminated. The DebitLink terminal will account for cash, accept all major credit cards, verify checks, and process all ATM cards and transactions.
The growth potential of this market segment is endless. Distribution is crucial to success and as Cancall builds its network of dealers and joint venture partners throughout the world numerous new products will be added to the mix. Some possibilities include Smart Cards, Internet, Plastic currency, Electronic wallet etc. Cancall feels that the DebitLink system offers unlimited sources of revenue in the future and gives Cancall the tools to achieve these goals now.
b) Pre-paid cellular
Cancall has identified the nearly 8,000 (one out of three) credit challenged applicants turned away by mainstream cellular carriers everyday as the fastest growing and most profitable segment in the cellular marketplace. Cancall believes it can make cellular ownership on a pre-paid basis available and affordable to those 3 million people turned away every year by the carrier. This will allow Cancall to turn this niche market into an exceptional revenue stream for the Company by taking advantage of Cancall's superior cellular air-time rates as well as the Company's high profile points of distribution in the most densely populated areas in North America. Cancall offers only state of the art cellular equipment.
c) Pre-paid cellular rental
Cancall was initially founded on the principal that everyone traveling away from home, whether it is for business or pleasure, requires instant communication at an affordable price. Cancall's primary short-term rental customer is the international traveler, whose own cellular phones currently will not work in the U.S.
Cancall's state of the art rental equipment offers the international traveler itemized "real-time" billing and direct dialing anywhere in the world with prices up to 30% less than the competition. Cancall has numerous agreements in place with international tour operators who refer their customers to Cancall for a residual of the airtime used. Cancall strongly believes anyone visiting North America needs the "peace of mind" instant communication in a foreign country brings.
MANAGEMENT TEAM
Cancall's management team is comprised of business professionals with solid operations, financial, marketing and new service development experience. The Company's Board of Directors includes individuals with proven business management skills including broad based financial services cellular industry expertise. The quality of the Cancall program has afforded Cancall the opportunity to select and bring aboard several of the most highly qualified finance and telecommunications experts in the nation.
STRATEGIC RELATIONSHIPS
Agreements with AT&T, Bell South, Sprint, GTE, Bell Atlantic/NYNEX, Bell Mobility, Cell One and Airtouch Cellular provide domestic and long distance cellular service for a significant portion of North America. Cancall has negotiated extremely favorable airtime rates through these relationships, providing the basis for the Company's competitive marketing presence. Cancall has a distributor or reseller designation in most cellular markets and works extremely close with the carriers.
Cancall has entered into a licensing agreement with Novacom Inc. of Los Angeles, Ca, a telecommunications service provider, offering Cancall's pre-paid product line. Novacom will offer these products to its customer base in Hawaii, California and Nevada.
Cancall is currently in the process of finalizing a joint venture with Sims Communications Inc, a NASDAQ listed company, involved in the marketing and sale of several proprietary communications products through AAA Clubs in North America requiring Cancall Cellular airtime. On a national scale the AAA represents nearly 40 million high-income consumers.
Cancall has been awarded the exclusive marketing rights to Europe and Canada and non-exclusive to the United States by New View Technology of its revolutionary "DebitLink" POS Terminal. The DebitLink terminal is proprietary and is the only POS terminal capable of "real-time" activations of pre-paid products such as calling cards, gasoline cards, Value added cards, etc.
FUTURE OUTLOOK AND SUMMARY
Cancall was initially formed to assure every individual the ability to have the peace of mind of instant communication at a fair and reasonable price. With an emphasis on the pre-paid cellular industry, Cancall has quickly established itself as a leader and innovator in the conventional pre-paid marketplace. However, Cancall management now sees a bigger picture evolving from its experiences dealing with the "credit challenged".
Cancall now offers a full range of pre-paid communications and financial services to millions of people at the point of sale (POS) utilizing its DebitLink product. The obvious market are the "credit challenged" who are currently ignored by conventional institutions. However, there are also millions of people who want anonymity when they make their purchases through catalogs or the Internet or who are concerned about giving out their credit card or checking account PIN numbers. As Canc |
