Danavation Technologies (CSE: DVN, OTC: DVNCF) is the only electronic shelf label provider grounded and based in North America. Driven by cutting-edge IoT automation technology and proprietary software, Digital Smart Labels™ technology enables retailers, grocers, healthcare providers, manufacturing and logistics companies, animal shelters, the military, and more to automate labelling, pricing, product information, and promotions in real time.

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Company Overview

The only North American-founded and headquartered technology company, Danavation Technologies (CSE: DVN, OTC: DVNCF), offers Digital Smart LabelsTM and a Platform-as-a-Service (PaaS) software solution that enables businesses across numerous industries to automate labeling, pricing, products, and promotions in real-time. By eliminating the high labor expenses and low productivity often connected with conventional labor-intensive operations, Danavation's Digital Smart LabelsTM increases data accuracy and performance. The company wants to drastically reduce the amount of paper we use to advance strong environmental, social, and governance principles while building a sustainable and successful business for shareholders. Targeting additional industries such as healthcare providers, manufacturers, and logistics firms, Danavation has offered its service to merchants across North America, including big box and specialty grocers.

Early April, Danavation announced a significant landmark. Its Digital Smart Labels will be integrated to Peavey Mart locations accross Canada. Peavey is a great partner for utilizing Digital Smart LabelsTM from Danavation because of its 94 sites, which span from British Columbia to Nova Scotia and range in size from 10,000 to 48,000 square feet.

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"We are absolutely thrilled to announce this contract with Peavey Mart, which has a significant revenue opportunity. We believe that technology should make life easier, not more complicated, so we are proud to bring a full roll-out of our Digital Smart LabelsTM and Platform-as-a-Service model to Peavey, helping to streamline the shopping experience for customers while further enhancing the stores' operational efficiencies and elevating the return on investment for management."

John Ricci, CEO of Danavation

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How Efficient Digital Smart Labels is? 

Let’s take an example with Cataldi Fresh Market. After implementing the solution, Cataldi would basically save 133+ hours monthly, $35.6k annually, and the return on investment would occur within 2.8 years. The company states Danavation’s product helps to change prices faster, the company saves labor costs savings, and less time is spent on in-store tasks, allowing more time for other operations. 

Another example: True Value. The company saves more than 100 hours monthly, saves $35k annually, and expects an ROI around 2.6 years. General Manager says: “It’s just the way that retail moves. It’s the next thing. And, I think this is going to be the industry norm.” Here are some points True Value liked about the solution: 

-Update prices from a central location

-Removing paper pricing labels

-Time and labour savings

-Margin erosion

-Clean and modern appearance

-Cost optimization

-Simplified business processes

Last one: Cook It. The company also saves more than 117 hours, spares $33k annually, and it expects to have an ROI within only 1.4 years. Cook It likes they can eliminate paper labels, do several savings on labor costs, and they can optimize the business process. 

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Share Structure / Financials 

Danavation Technologies has interesting financials (period ending January 31, 2023). The company significantly augmented its revenue while reducing its expenses. The company generated $586.8k vs. $139k in 2022. About loss, the company lost $983k vs. $2M in 2022. This is very optimistic to witness the trend changing. Another interesting information is on salary and benefits expenses. YoY, the board reduced by half this data, passing from $510k to only $253k. 

Nevertheless, the company had to do another financing to continue its operations as it only had $22.5k left. DVN raised $2M through this issuance of 10M units at $0.20 pze share. Each share is entitled to a $0.30 warrant.Mr. Harvey wants to back-stop $1,000,000 of the first tranche in relation to the private placement. The second tranche is anticipated to conclude on or about April 21, 2023. Sean Harvey will also sign an investor rights agreement with the company in connection with the closing of the first tranche of the private placement, which will give him the authority to name one nominee to the board of directors and take part in future financing deals to maintain his pro rata interest after the private placement is over.

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Before the financing, the company had 114.1M shares issued and outstanding, 5.9M warrants, and 8.5M options. Also, insiders used to hold 38%, which is pretty big data. Regarding the stock, it hasn’t fluctuated much over the last 52 weeks. DVN is worth $0.185 (April 11, 2023), and hovered between $0.13 to $0.32.

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What You Should Remember About the Company?

-Clients are able to automate labeling, pricing, product information, and promotions in real time with the use of digital smart labelsTM (micro e-paper displays).

-Revenue generation and growth are backed by a stable clientele that includes manufacturers, distributors, retailers, grocery shops, convenience stores, and big-box stores in the US and Canada.

-Development of new unique goods and services will fuel further expansion in the retail and grocery sector.

-The company drastically reduces expenses while seeing its revenues augmenting. The recent financing also strengthened the balance sheet. 

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