Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) Inc. said it has entered into a $240,000 data consulting agreement with Kiaro Holdings Corp. to consult on the development of the cannabis retailer's data warehouse and real-time data analytics strategy.
The Vancouver-based artificial intelligence (AI) company said it will assist Kiaro by introducing the use of AI applications and data mining techniques.
Kiaro is one of Canada’s largest retailers of cannabis, with 16 locations and forecasted annual revenue of $42.7 million from these locations. As a result of the agreement with Fobi, it will optimize and monetize its vast amounts of sales data by generating insights, analytics, and advanced audience segmentation capabilities, providing them with a market-leading competitive advantage in the fast-growing cannabis retail market, translating into maximum operational efficiency and profitability for Kiaro.
READ: Fobi AI wins $250,000 data consulting contract from Azincourt Energy
“This partnership with Fobi will allow Kiaro to greatly improve its overall operational efficiencies and enable the company to benefit from enhanced data aggregation and segmentation capabilities, as Kiaro continues to execute on our scale and growth plans,” Kiaro CEO Daniel Petrov said in a statement.
“With the sensitivity and importance of the large amounts of client data that can now be collected and optimized through Fobi’s AI-driven insights solution, I look forward to working with the Fobi team and advancing our internal data strategy and roadmap,” he added.
Fobi noted that the agreement with Kiaro is its second significant AI data consulting deal in the past week.
On September 24, the company announced a $250,000 agreement with Azincourt Energy (TSX-V:AAZ) Corp to help transform legacy, antiquated but commonly used practices in the mining and exploration sector, to help Azincourt achieve more impactful drill holes in less time and with less cost.
It noted that the industry diversity of its first two data consulting clients - from energy exploration to cannabis retailing - “unequivocally demonstrates that Fobi AI Data Intelligence knows no bounds”.
The Kiaro data agreement signifies an inflection point in the transformation of the $20.5 billion cannabis industry which is projected to grow to $90.4 billion by 2026. Fobi said the industry is ripe for disruption following a decade of siloed operational data management systems.
Rob Anson, Fobi CEO said: “I see the cannabis industry as a very lucrative opportunity for Fobi. This agreement with Kiaro will allow Fobi to demonstrate the power of our real-time data applications and analytics to provide a disjointed and fragmented market with the technologies and strategies necessary to improve existing siloed data systems.”
Following the Kiaro deal, Fobi said its data-centric business model is now entering the full commercialization phase with significant revenues from verticals that provide significant growth potential. It said it is in multiple advanced stage discussions with potential clients and expects to announce more agreements in 2021 and beyond.
Contact the author at stephen.gunnion@proactiveinvestors.com