[Miles Jennings]
Good afternoon, everyone.
Hope you're all doing well and thank
you so much for joining our presentation.
Today, we're going to have a shareholder
update call between Recruiter.com Group Inc.
And GoLogiq regarding
our recently announced transaction.
Thank you again for your interest in our
company and we're very excited to highlight the
transaction and discuss our business going forward.
To give you some opening remarks, I'm now going to turn it over to Evan Sohn, who is chairman of Recruiter.com Group Inc.
RCRT.
[Evan Sohn]
Thank you so much, Miles.
And thank you to everyone who's
joining us on this call today.
Really appreciate you taking out the
time to learn more about Recruiter.com
RCRT and our transaction with GoLogiq.
A little bit of a disclaimer
just so everyone could see.
Please consult our 10K, our filings, our 8K filings for our financials from 2022, as well
as various risks associated with the business.
And obviously use your best judgment and
do your own market research accordingly.
Just to give you a little bit of the
agenda for today, I'm going to give some opening
remarks and then review the proposed transaction.
I will then introduce everyone to
Brett Suen, the CEO of Gologiq.
He'll present the GoLogiq assets, their business,
their strategy, as well as their management team.
We'll then reintroduce Miles Jennings.
So thank you, Miles, who'll be presenting the CognoGroup
spin out, which is the spin out from RCRT.
And then we'll talk about some
overall next steps for shareholders.
So the last two years of market turmoil have
really prompted a shift in my overall and our
overall understanding of evaluations of corporate valuations.
I think previously the market rewarded eternalized growth, and
as we as RCRT grew from 5 million in
2020 to over 25 million in 22, however, the
market sentiment really changed and the focus went from
revenue value to really cash value.
And as a result, we determined back in
November of 22 that one of our greatest
assets really is our Nasdaq public listing.
And to really unlock that value for the RCRT
shareholders, we embarked in conjunction with Joseph Gunner, our
investment banking firm, on a process to look at
doing a transaction involving our Nasdaq public listing.
Joseph Gunner brought us over 20 potential reverse
candidates or potential candidates and did a lot
of meetings, a lot of diligence around them.
And our search criteria really included a management
team ready for Nasdaq, a company driving significant
revenue with room for even more significant growth,
and an industry that's really exciting.
And I was thrilled to really be introduced to Brent
and the overall team at Gologiq, just to give a
little bit of understanding of the actual transaction itself.
The proposed transaction that we announced on June 6,
again, these are all filed with public filings.
In general, you can see those on
our 8k and our press releases.
The June 6 transaction really included that RCRT
would acquire various assets of GoLogiq and
those assets would be including e wallets and
mobile payment and other things that Brent's really
going to talk about from an asset perspective.
In consideration, GoLogiq would receive of RCRT
shares equal to 84% of RCRT, with the
existing RCRT shareholders maintaining approximately 16%.
So 84% for the GoLogiq shareholders, 16%
for the RCRT shareholders, the current RCRT shareholders.
The agreement valued the combined companies at approximately
$105,000,000, which is substantially above the current market
capitalization of RCRT, which is currently around, let's
say, four and a half million-dollar market
capitalization, with 16% of that valuing the business
at around $17 million.
So that really is the proposed transaction,
which will also include a spin out.
And we'll talk about the spin
out in just a few moments.
But we really want to bring some more attention to
really who is GoLogiq, who is their management team, and
why we at RCRT were so excited to really invest
our Nasdaq listing in this company and in these people.
So I'd like to introduce everyone
now to sorry about that.
I'd like to everyone now, it's my
privilege to introduce Brent Suen, the interim
Chief Executive Officer and Chairman of GoLogiq.
Brent has 31 years of experience in the capital
markets investment banking industry and was the youngest hire
of Bear Stearns merger Arbitrage department in 1987.
He also has significant experience in telecom, media and
technology, both as an advisor and as an investor.
He's got significant operational experience both startup and
expansion stage with companies in Silicon Valley during
the 1990s, emerging markets experience in Asia, Eastern
Europe and Latin America, and more recently, mobile
and fintech companies in Southeast Asia.
And it's my privilege now to turn the
microphone and the stage over to Brent.
So Brent, take it away.
[Brent Suen]
Wonderful.
Thank you, Evan, and good afternoon to everyone
and thank you for having us here today.
As Evan mentioned, my name is Brent Suen.
I am the interim CEO of GoLogiq.
I'm going to overview the businesses that are coming into
RCRT and then briefly introduce a few of our team.
I'm not going to read the slides to you all.
I know you're capable of that.
I will speak around them instead and attempt
to highlight the best parts of them.
So with that, Miles, would you mind
going to the next slide, please? Thank you.
So we have taken a three phase
strategy to going forward with RCRT.
All three of these phases are either in place
or underway now, so there's nothing that's greenfield or
unexplored and so we are not a startup.
I will elaborate on each one of
these three in the coming slides.
I will also note that on some things
we are deliberately general and a bit vague.
The reason why is because there are certain
trade secrets and practices that have just evolved
recently and there is little to no competition
in terms of what we're doing specifically.
So we do not identify it in specifics, there is
only one company that we know of that is publicly
traded that is utilizing the same strategy and approach.
And their third year of business, they did 1.2 billion.
Most of that has come recently because of the
advent of something that is quite well known and
talked about, although I believe that it is for
many more of a buzzword or a trend.
I'll go into that shortly.
Phase one we call Project X.
Phase two are the acquisitions that we have lined up.
These are specifically of fintech based companies.
And then phase three, which for the past eight
years we've just called it Deep learning, but I
believe others call it AI or Machine Learning.
I will go on to phase one on the next slide.
Thanks, Miles.
We call this Project X because we've gone
through 25 evolutions on the way here.
We began nine years ago, and so this is not new.
We've had several successes and numerous failures and
treated the entire history as a learning experience
along the way to a big win.
We believe we're there right now.
However, in 2021, after COVID, we decided
to take a very dramatic approach and
we actually contemplated closing down the business.
However, we continued a few more trial
runs right at the same time that
we decided to shutter the core business.
Our tech team came to me and my COO and said
we've actually just had a massive breakthrough that was, believe it
or not, in April of this year, right before we were
introduced to Miles and Evan and the team at RCRT.
So it could not have been more timely.
This breakthrough, by the way, generated 3 million
in revenues on a pilot program the first
month out with our partner, and this evidence
points us towards a $70 million year, one
run rate and profitability within three months.
So coming in as we are into RCRT right
now on the heels of this breakthrough, we think
is extremely timely and extremely compelling to you all
as shareholders of RCRT and subsequently GoLogiq.
Phase two, as part of this plan for
fintech acquisitions, we plan to grow exponentially.
And through this, there are ten acquisitions
which we are in later stage with.
We are attempting to close three of them at
the same time as we go into RCRT.
These acquisitions all fit into Project X, into
the platform itself, and they also operate as
standalone businesses that will grow significantly and also
have strong gross profit margin profiles.
This gives us presence in two of the
most compelling emerging market regions in the world.
One is Greater Africa.
The other is Southeast Asia.
Southeast Asia, by the way, our core team and
I have been working in myself 14 years, the
rest of my team, ten to 20 years.
And our incoming Chief Executive Officer, Granger
Whitelaw, actually resides in Vietnam and has
been working and investing and advising in
Southeast Asia for over a decade.
Next slide. Thank you.
Phase Three is actually something that
we've been fairly modest about.
Oddly, it's become a huge buzzword and many
businesses have launched and many have rebranded themselves
and are focusing on the advent of AI
and how it's enabled their business.
We actually built a platform eight years
ago that is the backbone of everything
we do in terms of business processes.
We just didn't call it AI.
It's just a platform that has and does
teach itself with input that comes in from
either customer interaction or interaction from our team,
or advertising and marketing campaigns.
And surprisingly, the recent popularity of Chat GPT, which
is owned by OpenAI, has combined with Radix and
what it's enabled us to do is bring down
costs significantly by not having to have a broad
sales team or a large customer service team and
therefore the costs associated with it.
Therefore, we're able to scale rapidly and attain
very high revenue growth and a higher gross
profit margin profile without the high cost of
teams that scale up alongside.
I think we missed a slide there, which was actually
the financials yeah, I think that it was right in
between the management one and the last one.
[Miles Jennings]
Brent, I'll come in here.
I don't believe that it was in the
presentation that we had for this webinar.
So perhaps we could include it in an 8K for shareholders
because I don't want to do it on the fly. Understood?
[Brent Suen]
Understood.
Well, I can speak to it very quickly
so our viewers can at least get an
idea of what our revenue ramp looks like.
We're anticipating from July of this year until
December growth that encompasses about 27 million in
revenues with profitability in Q Four.
That's what is going into RCRT.
We believe that we can scale that to close to
100 million in revenues next year with profitability both on
an EBITDA basis and on a net basis as well.
Going a little further ahead, we believe that several
years out we can approach the $250,000,000 per year
revenue run rate and this will be generated by
our core business, as we indicated, Project X and
the fintech acquisitions that we're bringing in.
Those of you who stay along for the ride,
this would imply a very enviable market cap.
As Miles just said, we can certainly
outline that in an 8K.
In subsequent presentations talking about the GoLogiq
Management team and our board, I would like
to point out that several of our board
members and team are on the call now.
I actually thought we were going to do
a gallery viewing, but nonetheless here's Granger Whitelaw,
the former founder of Rocket Racing.
He's also worked in investment banking and investing in
and advising in emerging markets for over 25 years.
We also have Candace Beaumont
on our board of directors.
She's the chief investment officer of Salsano Group,
which is a $1.5 billion family office.
They were an early investor in some of
the more well-known unicorn valued companies that
have come out of Silicon Valley and other
Silicon Alleys, uber, Airbnb, Palantir and a number
of other well-known unicorn valued companies.
Candace is a lifelong investor and
advisor to a number of them.
James Keys, the former global CEO of 711 stores who
led the company through their highest growth in history.
Jim is on our Board of Advisors and SIM
Ferrara, the US Ambassador to the United Nations and
a lifelong US government statesman and diplomat, especially since
we're doing work in emerging and frontier markets.
SIM has joined us as an advisor
and is certainly a mentor to me.
And of course, Granger is our incoming CEO who will
be taking the helm and I will stay on the
board and work on MNA and strategic initiatives.
In summary, we are extremely excited
about the merger with RCRT.
We firmly believe that we will execute
on growth and profitability, delivering shareholder returns
and building the company into a billion
dollar enterprise over the years.
[Miles Jennings]
Thank you, Brent.
Thank you so much to our shareholders and other
audience members interested in learning about this company.
I hope you can see and understand
our enthusiasm for Brent's business and his business plan.
He's going to do great things.
And it was a selective process.
As Evan mentioned, we had a number of
candidates to come into RCRT and we felt
that Brent's company was really a good prospect,
has very strong potential for market appreciation.
So thank you so much, Brent.
Thanks, Miles.
And now I'm very proud to introduce
you to our new company, CognoGroup.
Now, CognoGroup is what we call the spin out.
In this proposed transaction, we have our
existing business, which is being spun out,
and we are calling that company Cognogroup.
This is the first time that
we are publicly announcing this name.
We are calling it that in order to both
suggest the focus on artificial intelligence, which I'll go
into in the coming slides, and also to reflect
a multi-brand portfolio versus simply Recruiter.com. I wanted to go
over the transaction once again.
So GoLogiq or certain assets of GoLogiq
related to Fintech are coming into RCRT.
RCRT is the current Recruiter.com group inc.
That is our Nasdaq listed entity.
Then we are going to spin out our
current assets and liabilities, essentially our current operating
business, into a new company, and that is
to be called CognoGroup.
We plan to have this listed, or I
should say quoted on the OTC markets.
So again, all of the existing businesses, including
Recruiter.com itself as an asset, will be coming
into Cognogroup and then GoLogiq assets, including
Brent's team and his strategies will be coming
into RCRT little bit on our strategic plan.
This is really already very much
in place and in motion.
The first part of our strategy
includes a real emphasis on profitability.
We started this process.
I would say in November of last year, we
announced certain reductions in staff and certain divestments.
And then this accelerated with our partnership with a
company called JobMobz, which is a leading RPO
in California, a recruitment process outsourcer and that took
a lot of our sales staff in certain operations
and put that over to JobMobz and that
continued to accelerate toward profitability.
So this is very much underway.
The second part of our strategy is really to look
at all of our basket of current assets and ensure
that we're monetizing those assets to its fullest potential.
Each of the assets, and I'll describe that
in the next slide, are revenue producing.
But we are also looking, as we announced in a
press release, at potentially selling certain of those assets.
And we are currently in negotiations
with a number of parties.
It should be said of course, that the
results of those negotiations cannot be guaranteed, but
we have announced those negotiations are underway.
And then thirdly, and we think this is very
important and represents really the future of the company
is to really focus on artificial intelligence enabled projects.
So this is something that rather like Brent
mentioned, Recruiter.com was doing rather advanced AI work
throughout 2022 with our candidate sourcing software.
But we do not intend to invest heavily
in R&D, but instead rather look
at smaller projects, rightsized to the scale
of our operations, maintaining that focus on profitability.
And I'll go over some of our existing
assets and we've announced a number of AI
related projects already just this year, the current
assets and these are really our existing business.
So our current operating business includes two
major brands involved in recruitment and employment.
That would be Recruiter.com and Mediabistro.
Recruiter.com is an on
demand recruiting solutions platform.
We provide recruitment and hiring experience
to employers looking to hire great
talent for their organizations across industries.
And then Media Bistro.
Media Bistro is focused in the media sector.
We're announcing some plans to shift the focus
of Media Bistro to include all types of
new digital media, including AR, VR, et cetera.
But those two assets are in
recruitment and the Job board industry.
The JobMobz partnership is essentially a referral
agreement and this leverages the Recruiter.com brand and
lead generation capabilities and that has a $2
million minimum amount throughout the next coming years.
We also have a healthcare staffing business, which
is a legacy business, but it is a
growing business because of macroeconomic trends.
Healthcare is in focus across the country.
Our AI focus includes a number of announced
partnerships and also completely own proprietary technology.
Candidate Pitch, the first one of those is
an application that we have developed, I would
say it's in the first version, version two
is coming out and Candidate Pitch helps recruiters
develop instant profiles of talent and candidates.
And this is a software program that has customers.
It's in the wild right now, actually.
I encourage you to go to
Candidatepitch.com, see it for yourself.
It leverages the ChatGPT API from OpenAI
and does some very interesting things with it.
And we're going to continue to
build this application and invest there.
Recruiting with ChatGPT is a
content course that we developed.
We really did this to be on the forefront of
AI and Chat GPT and really kind of leverage the
really great interest in ChatGPT and AI in general.
This trains recruiters and upskills them and
also gives them certain AI-enabled tools
to do their work of recruiting better.
The MillionWays Partnership.
MillionWays is an announced partnership.
They have developed a proprietary AI
system which has emotionally intelligent AI.
So what does that mean?
It analyzes either text or audio and then can
discern certain personality aspects of the person writing.
So you can imagine there are some great ways
to leverage this in the human resources realm.
And we just announced last week a
partnership with MillionWays to develop their
product to the HR and employment market.
This is a partnership which
may have an equity component.
We announced that we are currently in
negotiations with them to acquire equity in
their company through an equity swap.
And then lastly, the AI Exchange Group is a
really interesting discussion forum of over 1.1 million members.
This is an AI forum, if you will, on LinkedIn.
And we're going to use this not
only to just promote discussion in the
area, but of course, promote our products.
And so this is going to be just
a growingly important channel for Cognogroup going forward.
That's the AI exchange on LinkedIn.
And I also encourage you to check that out.
And then, Evan, here you go. Thank you so much.
[Evan Sohn]
You know what, Miles, before we talk about
what's next, I actually could share a slide.
I have the revenue slide.
Brent, is Brent still on the backstage?
There you go.
Hey, Brent.
To me, I love this slide and it really
shows not just about a vision of mobile fintech,
but actually some real meat on the bones.
So I found the slide.
Sorry about the technical confusion there.
You want to just walk the
audience again through the slide?
We have about 60 plus people on the call today.
[Brent Suen]
Oh, certainly the core business. Again.
We call it Project X.
But a slight amount of due diligence will reveal how
we started out and how we named it before.
But I think for all intents and purposes,
going forward, we'll just call it Project X.
The revenue associated with that for last
year is only about 5.2 million.
This year, we're looking at a July through
December revenue rate of about 21 million.
From that heading into profitability three months out, the
6 million in green will be contributions from the
fintech acquisitions that we'll be adding in.
If you go into 2024, you start to see
how the fintech businesses really start to ramp up
while at the same time, you still see significant
growth from Project X, the two combined.
Again, we expect 104,000,000 in revenue
and profitability the year after.
For those who choose to stick around, I certainly will.
We believe that we can approach a quarter billion in
revenues, and that would imply an enviable market cap.
And I believe that by then, we'll certainly
be seeing valuations in the stock market that
would be representative of Valuing and enabling fintech
businesses to grow and succeed.
Thank you.
[Evan Sohn]
Thank you, Brent and I couldn't agree more.
So, again, everyone, you could check
out Brent Suen, his LinkedIn.
He's got just phenomenal background.
And for those of you who have spoken to me
prior to the call and throughout the journey as RCRT,
you'd realize that driving revenue over 100 million, hitting profitability
and really being just a great player on Nasdaq is
really fundamental to being a company on Nasdaq and just
could not be more excited to get Brent and the
entire team of GoLogiq as really benefiting not just Go
logic, but really the RCRT shareholders.
So, Brent, thank you so much.
Miles, you want to go back to the other screen?
There you go.
So what's up next?
The process now is we have a proxy.
You should be expecting that shortly.
In the next couple of weeks, the RCRT shareholders,
assuming shareholder approval, will be getting the GoLogiq
assets, which value the current RCRT market cap at
$17 million over four times the current market cap
of where we are today.
In addition, the RCRT shareholders will be
getting shares in the OTC spin out.
The value, of course, will be determined there.
And that was the CognoGroup
spin out that Miles walked through.
So we're taking the RCRT shareholders, we're putting
them in the hands of Brent and the
GoLogiq team at a market cap for our
shares at $17,000,000, 4 times where we are today.
And we're taking the assets and spinning them down to
an OTC to really be headed up by Miles and
all the incredible AI stuff that's going on in terms
of overall work tech associated with that business.
Again, very excited for both transactions, and
these are only for shareholders of record.
And again, going back to the disclaimer at the beginning,
there are steps along the way to get there.
But we have just an incredible team over
at Joseph Gunner Associates, our legal team of
Lukoski Bookman, really supporting this overall transaction.
And we're very excited to be moving forward
together with the folks at GoLogiq and of
course, towards spitting out the OTC as well.
So we did this through StreamYard.
I do not believe there are any chat
questions that came in through the chat.
I don't think it allows an open chat right now.
If anyone has any questions regarding this transaction,
we've disclosed as much as we can.
They'll be filing an 8K with this
presentation probably as well as the transcript
as well you can email me, Evan@recruiter.com.
Email me directly, evan@recruiter.com and I will try to get
that information over to you as fast as possible.
That's the best way to get in touch with me.
If you have any GoLogiq related questions,
brent, how should they get in touch?
For GoLogiq related questions, Brent@GoLogiq.com cannot
be more complicated, so cannot be easier.
Thank you so much.
Thanks so much, Brent.
Again, anyone has any questions, feel free to email me.
Evan@recruiter.com or Brent@GoLogiq.com.
[Miles Jennings]
Evan, sorry to interrupt.
There are a couple of questions that just came in via
one of the social channels, and I can ask them.
I think this is really the
first one is really for Brent.
I thought we might as well do this live.
So, Brent, Rich asks, are any
of the acquisitions under Loi already?
[Brent Suen]
They are.
[Miles Jennings]
I think that's all you can say.
Short and sweet. Yes.
And also, Alan: can you explain or
give an example of GoLogiq current
businesses and revenue projections excluding future acquisitions?
So I think, Alan's, getting to the existing
business, how you might project that going forward
versus the future acquisitions that are planned.
[Brent Suen]
Certainly.
So the core business, when we began back
in 2014, it was and still is, through
a number of iterations and evolutions, an app
that is enabling to micro and small businesses.
And the way that we marketed it when we started
out back in 2014 was through a partnership with a
direct sales team, which had, at the time, 1200 salespeople.
We expanded that and grew that to 37 million
in revenues in a very short period of time.
We had about 93% cumulative growth
over four years on that.
However, our costs that were alongside that, with
the direct sales team and associated customer support,
unfortunately scaled up alongside the revenue.
So it was very difficult to head towards profitability.
Over the years, we tried different iterations of
digital marketing, still with the same results.
And it wasn't until again in April that we
had this breakthrough on the sales side and on
the customer support side, which really is indicative of
how artificial intelligence is enabling in a number in
a broad range of industries.
Specifically, for us, I can't say that it
was just purely the whole ChatGPT platform.
It was also the way that it was
integrated in with Radix, which is our AI
platform that we built eight years ago.
So in speaking to that, the revenues from
this business alone last year were 5.2 million.
This year we have restructured it for
the first quarter of this year.
What you'll see going forward, from roughly
July until December, we estimate to be
about 21 million in revenue.
So the 7 million on top will be
additive from the acquisitions going into next year.
We believe that we'll generate around
72 million from the core business.
The added revenue from the Fintech acquisitions will add
another I'm not looking at the slide, but I
believe about 26, 27 million taking us up to
the north of 100 and 100 million in revenues.
So I hope that that illustrated it properly.
[Miles Jennings]
Thank you, Brent.
Another question that came in was the
timing on the SpinCo becoming public.
The proposed spin out of CognoGroup and
the subsequent quotation on OTC markets is essentially
concurrent with the GoLogiq transaction.
Probably right before, but essentially concurrent.
So this would be in the same transaction,
and it would be in the proxy.
So the long pole in the tent,
if you will, is the shareholder approval.
Hopefully, everyone got a very good idea of Brent's
businesses and what we have intended for CognoGroup.
And so that will happen really all at the same
time, and it could be essentially a couple of months,
and then sorry, one other question for you, Brent.
Am I correct in thinking that current GoLogiq sorry, GoLQ shareholders will also own
shares in another portion of the current business?
So he's talking about your
existing business, Gamma Ray.
So would they still maintain that ownership? Correct?
You might say?
[Brent Suen]
Yes, that is correct.
Yeah, that's correct.
[Miles Jennings]
Okay, I think that's all of our questions that we have
for now, and so we're going to wrap up now.
Again, thank you all very
much for joining this presentation.
We're very excited about this transaction, and as Evan
mentioned, if you have questions, additional questions, please feel
free to email Evan, myself, or Brent.
You can reach us directly, and we will
attempt to communicate very clearly to our shareholders
throughout this process on any updates and developments.
Again, thank you very much
and have a wonderful evening.
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GoLogiq Inc. published this content on 27 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2023 21:21:30 UTC.