2017-02-07 -NR - Gatekeeper Signs New Revenue Sharing Contract For Stop-Arm Cameras On School Buses
FOR IMMEDIATE RELEASE
Gatekeeper Signs New Revenue Sharing Contract
For Stop-Arm Cameras On School Buses
Abbotsford, BC February 7th, 2017 - Gatekeeper Systems Inc. (“Gatekeeper” or the “Company”) (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to announce that it has entered into a five-year revenue sharing contract (the “Contract”) with Troup County School District, located in Georgia, USA (the “District”). Pursuant to the Contract, the Company will commence an initial installation of ten systems consisting of Gatekeeper’s Student ProtectorTM multi-lane stop-arm video enforcement cameras, and TIMTM (Traffic Infraction Management) technology (the “System”).
Troup County School District, with 19 schools and 160 school buses, completed a one-day stop-arm violation count in May 2016 that identified 78 violations on its 124 bus routes. Gatekeeper will begin installations on buses servicing areas identified as high-risk for stop-arm offenses. The District intends to increase the number of Systems during the five-year Contract.
Doug Dyment, President and CEO of Gatekeeper, commented, “We are thrilled that Troup County chose Gatekeeper for this project to deter stop-arm violators and promote safety for its 8,000 students transported daily. This is the third revenue sharing contract we have landed in Georgia and we are confident that positive results and user experiences will continue to fuel Gatekeeper’s recurring revenue business model as a leading end-to-end solution provider for our industry.”
Under this Contract, Gatekeeper is responsible for administrating the project and will manage the process end-to-end, from violation through to citation payment. The Troup County Sheriff’s Office will use TIM™ to review recorded violations and approve or reject the issuance of citations. The revenue generated from citations funds the program and will be split amongst the District, the County, and Gatekeeper.
In Georgia, USA, stop-arm violation tickets begin at USD $300 for the first offence; USD $750 for the second offense; and USD $1,000 for subsequent offences within a five-year period. The Contract is for an initial five-year term, beginning on the day which the first citation is issued, and automatically renews for an additional five-year term, unless the District or Gatekeeper provides written notice of its intention not to renew the Contract.
During the past 12 months Gatekeeper has been in discussions with multiple school districts, representing over 5,000 school buses, to install complete and fully functioning stop-arm camera systems for a specified period (the “Evaluation Phase”). The Evaluation Phase enables school districts to verify the quality of Gatekeeper’s Student ProtectorTM technology and monitor the number of stop-arm violations occurring in their districts prior to entering into a contract.
The Company currently has twenty-four school districts throughout the United States in the Evaluation Phase, representing 1,862 school buses, and is hopeful that it will be awarded additional contracts following the completion of these Evaluation Phases.
The National Association of State Directors of Pupil Transportation study for 2016 indicates approximately 13 million stop-arm violations occurred in a single day across 34 States. With an average of 180 days in a school year, the number of stop-arm violations could surpass 2 million within the State of Georgia.
Ownership of Student ProtectorTM equipment, and TIMTM, a proprietary software application, remains the property of Gatekeeper, thereby providing a zero capital cost solution to school districts while enabling them to share in stop-arm violation ticket revenue.
About Gatekeeper Systems Inc.
Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop-arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications.
The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol “GSI”, on the OTC Markets under the symbol “GKPRF”, and on the Frankfurt Stock Exchange under the symbol “1GK”.
For more information visit: www.gatekeeper-systems.com.
On behalf of the Board,
President & CEO
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, including projected sales and revenue, plans, objectives, assumptions or expectations of future performance are forward-looking statements and contain forward-looking information. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, including that new contracts will be awarded as expected by management and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including the Company not being awarded new contracts and being unable to realize expected sales or revenues. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information, except in accordance with applicable securities laws. To the extent that any forward-looking information constitutes future-oriented financial information or financial outlooks within the meaning of securities laws, such information is being provided to inform the reader of the potential financial impact of expected results and may not be appropriate for other purposes. We seek safe harbour.
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