New York, New York--(Newsfile Corp. - January 31, 2020) - On4 Communications (OTC Pink: ONCI) is pleased to announce the following update to Shareholders:
LETTER TO SHAREHOLDERS
2019 was a great year for ONCI. We increased revenue YOY and we reached important goals and targets. As we move forward, we see a change coming to how we do business going forward. We were the first company to sell our app to car dealers. But as we move forward, we need to change the way we do business and move to a more important business model. As we have discussed, I feel the most important opportunity for growth are insurance companies both in USA and abroad. The best chance for optimum revenue growth is to make deals with insurance companies all over the world. We are currently in talks with five international insurance companies and are close to making deals with them. If this happens going forward, we can increase revenue five fold in 2020. This would be a sea change for ONCI.
Moving forward, Bsafe Mobile will be changing its marketing and revenue plan. Instead of doing one sale at a time at a car dealer, we will be fishing where the fish are. We will be focusing on insurance companies, both large and small, in the USA and abroad. Our revenue model will be switching from a onetime payment upfront to a recurring revenue model. We will move to an all-or-nothing model. How this works is an insurance company will be charging their users a small license fee on the anniversary of every auto policy for safe driving. The fee will be like a tax, and every auto policy holder will pay it. The insurance company will send every client a link to download the app to their mobile phone. The customer who does not download the link will get two additional emails reminding them to do so. We are looking to do five-year deals with the insurance companies and automatic renewals. What this means is that our potential revenue will change every month once the deals are signed and we will add more policies to the fold. As stated already, we need to make some changes to our IOS version of our software based on the specs of the first two companies we have spoken to. The change should take 45 days but that's in the best case scenario.
To date, we have spoken to five international insurance companies with over 12 million auto customers. What this also means is that we will not have to chase companies for money. We will get a breakdown every month of each policy renewal. This way of doing business is also great for the companies because it won't cost them any out-of-pocket cash and they will save millions of dollars in claims.
We believe that this model is a win-win for all parties involved. What we find interesting is that foreign insurance companies are much more interested in this than the US companies.
We believe that this model will be a total game changer in the way our business conducted going forward.
More on the rest of the company to follow at a later date as we move every aspect for each division forward.
About On4 Communications
On4 is a holdings company with an aggressive focus of acquiring proven and profitable businesses. Our first project is focusing on businesses operating in the $1.7 trillion U.S. healthcare industry. Our newest targeted businesses are operating in the trillion-dollar mobile App space. Our first acquisition in the mobile App space is FMS Marketing, a global creator and distributor of mobile Apps for Android and iPhones. We are also targeting businesses to acquire and joint venture within the medical marijuana and emerging MJ ancillary products space.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements, as described in our reports filed with the Securities and Exchange Commission, which are available for review at www.sec.gov, to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.