Last week InfoStream caught up with PetLynx founder Larry R. Evans at his home near Crossfield, Alberta, Canada.
InfoStream (IS): We understand there are changes coming to PetLynx Corporation, our global audience now numbers over 320,000 and they would like to know more.
Larry R. Evans (LRE): Thank you for this opportunity to communicate with your audience.
IS: What is driving these changes at PetLynx?
LRE: Since 2013 we have observed huge changes in the pet industry and we believe there is much more to come. Because we have been ‘people centric’ in our approach, we could also see that our asset protection and recovery service under the HomeSafe™ brand has a much wider consumer base than we could reach from the pet industry. By late 2015 we identified the elements most important to people and the valuable things they wish to protect and recover.
IS: Does this mean the company is moving away from pets and pet owners?
LRE: Absolutely not! In fact, our pet owning subscribers will be the first to experience a broad range of new services that will give them ‘Fast, Cheap, Direct Protection of all things Valuable’.
IS: The press kit says you are rebranding the company. Why the name change?
LRE: In 2005, we developed the Urban Animal brand and used it extensively in our development of subject matter expertise through the Urban Animal Summit program.
The new name for PetLynx, Urban Animal Corporation, recently received the approval of our shareholders and we will move quickly to bring this brand to life in the market. I think everyone will agree that it is a strong brand that shows our ‘people centricity’ and will facilitate our move to ‘all things valuable’. People are the most important Urban Animal since they have votes, they have wallets and they have valuable things they wish to protect and recover.
IS: Why are you offering 22% of the company to outside interests?
LRE: In fact, we expect to part with even more of the company in a future round. We attract new investment to ensure that we have the capital to achieve our goals. In 2016 investors will provide commitments totalling over C$2 million dollars to acquire roughly a fifth of a company that we believe is now worth in the order of C$20 million.
IS: How can Urban Animal Corporation be worth C$20 million?
LRE: Let us first say that beauty and also value is in the eye (assessment) of the ‘beholder’. However, as we observe recent transactions (some involving pre-revenue or negative income companies) we can imagine how Urban Animal Corporation will be valued by investors.
I believe your readers can see a subtle change in the valuation of companies that represent large trusted ecosystems. As the global economy moves into the ‘post-digital’ environment, brands that haven’t been able to achieve their goals need to accelerate their e-commerce and digital programs to remain competitive.
Since 2013, we have observed transactions that have valued the acquisition of subscribers, members and policyholders (POPulation) at values ranging from C$23 to hundreds and even thousands of dollars per POP.
Brands have recognized they don’t have the ability or resources to achieve a timely competitive position except by acquisition or strategic partnership. At C$20 per active subscriber Urban Animal Corporation would be valued at just over C$20 million dollars today.
IS: Doesn’t it seem like development took a long time?
LRE: The Company has been fortunate to have core investors that have patiently invested more than C$7.4 million and eight years to be prepared for the day when the Company emergence would align with commercial activities.
Urban Animal now has a very strong position with 8 million public users and more than a million subscribers from which it has generated more than C$5.2 million in revenues. I might add that successful plays like Google, Facebook and Amazon have all taken more than a decade. However we can see the current pace of emergence has really accelerated.
IS: What makes Urban Animal believe it can be successful under current market conditions?
LRE: I think there are three elements that will lead us to achieve success:
HomeSafe™ is the only Automated, Privacy Compliant, Online Recovery Service that provides Fast, Cheap, Direct Protection of all things valuable.
Proven HomeSafe™ web services can be easily ported to the Android and IOS platforms and then bundled with Network services or OEM digital devices.
We have assembled a stellar team of professionals that can take on the heavy lifting of finance, operations, marketing and administration.
IS: Can you identify the team you have assembled?
LRE: Our Merger and Acquisition team includes advisors from Bennett Jones (Legal/Tax/Structure), Deloitte (Capital Advisory), Armanino (Sell-side Support) and CAS Corporate Governance (Corporate Reporting/Administration). Deloitte Corporate Finance is contracted to prepare us for an additional round of investment in 2018.
Among the other professionals are Endeavor (Assurance), McRally (Real-time Financial Reporting), Andrea J. Parkins (Investor Relations), Cheryl Wallach Communications (Digital Media) and Cori Imberi Professional Services (Client Experience and Service Desk).
IS: We notice a strong marketing organization is missing.
LRE: There is currently much upheaval in this area as agencies and marketing organizations consolidate and move to more intimate success based roles with their clients. Even so, there are several candidates in view. We like the performance of Trone Brand Energy and Meredith Corporation in the US market.
The first major marketing activity will be the launch of the new brand and marcom development. We have a proposal from a local company, Venture Communications, that we like very much. By the second quarter of 2017, when we require a strong success based marketing partner we expect one of the organizations on our watch list will meet these requirements.
IS: Where does all this lead?
LRE: The Company is aimed at a moment in 2020 when it can attract a strategic partner or acquirer. At that moment, we expect the plan will deliver 42 million public users, 9 million active subscribers and a share value at or near C$0.90.
IS: Are you prepared to reveal the new services you alluded to?
LRE: We aren’t going to reveal new services until later. At that time there will be opportunities to share market data and reveal each new application (service).
IS: Thank you for taking the time to update and clarify the plan for our audience.
LRE: Thank you for this opportunity
