Why invest in Zonetail?

The majority of people’s lives and dollars are spent in and around places, such as their condo, work, or hotel — often within a 5-mile radius or less.
Given this, there’s a lack of convenient, useful, and contextually relevant ways of connecting people with where they live or stay, and the surrounding area.
Conversely, local businesses have few ways of connecting directly with condo residents and hotel guests.

Zonetail connects hotel guests and condo residentsto the building and neighborhood.

The Zonetail mobile platform provides hotel guests and condo residents access and interaction with building amenities and services. It also connects guests and residents with neighboring restaurants, stores, services, and attractions.

In partnership with the Asian American Hotel Owners Association (AAHOA), the largest hotel association in the world,

Zonetail is in the process of rolling out its mobile platform to over 25,000 hotels, representing over 50% of the U.S. market.

Zonetail is also rolling out to 2000 condo buildings in Canada, representing an estimated 400,000 units, and 20% of the Greater Toronto Area condo market in partnership with the property management software company, Shiftsuite.

Competitors don’t have the location-based anchor or market distribution.

Competitive location based apps such as Google, Yelp, and Trip Advisor provide a ‘fire hose’ of unstructured, general area directory style information that is non-engaging, and not contextually relevant. Neither is it anchored to and therefore relevant to where people live or stay.

While some hotel chains offer their own branded app, they don’t offer property specific information or connect users to the neighborhood. the problem is most travellers don’t always stay with the same hotel brand. In addition, most people don’t always stay with the same hotel chain. Neither do they want dozens of hotel apps on their phone.

With 25,000 hotels and 2,000 condo buildings, no competitor is close to acquiring the same market distribution as Zonetail.

Greater Toronto Area Condo Building Coverage

How Zonetail makes money.

Zonetail’s mobile platform is offered free to hotel and condo property management partners.

The company derives its revenue through merchant ads in the app’s ‘Explore’ section providing advertisers a highly effective way of engaging with hard to reach hotel guests and condo residents.

Zonetail delivers a better option for advertisers than other methods such as direct mail.

For example, the average direct mail piece to condos costs 25 cents per drop with a response rate less than 1%. Worse, due to resident disinterest, unaddressed direct mail often goes directly into the recycling bin. Zonetail offers advertisers a strong alternative at a fraction of the price. And it’s not one shot, the message is always on, 24/7/365, with a content management system allowing the message to be changed anytime they want.

Zonetail is actively approaching advertisers in both Canada and the U.S. and is currently in discussions with national retail chains, restaurant chains, travel-based credit cards, and cannabis products and delivery partners, amongst others.

Zonetail will also be introducing other methods to increase potential revenue, including transaction-based, with the recent announcement of its partnership with Foodora, the food ordering and delivery specialist, as an example.

Hotel booking engine opportunity.

Zonetail is actively investigating the development of a hotel booking engine, offering direct booking to AAHOA’s 25,000 member hotels as well as other hotel partners.

AAHOA members own almost 1 of every 2 hotels in the United States.1
The average hotel annual occupancy rate in the United States was 60.7% in 2016 with an average hotel room rate of approximately $124 a night.2

Based on these numbers we assume AAHOA member hotels do approximately $188.17M per day in reservations, which is $68.6B annually.

Assuming an 8% commission, (substantially less than online travel agencies) Zonetail would generate approximately $55M per year in revenue for every 1% of the AAHOA reservation market captured.

1. https://aahoa.com/about-aahoa
2. Hotel News Now “STR: US hotel performance for total-year 2016, Q4 2016” Jan. 23, 2017

The mobile market.

According to emarketer, mobile advertising will continue its dominance, accounting for more than two-thirds of digital ad spending in the US, at an estimated $87.06 billion in 2019.

By 2020, the channel will represent 43% of total media ad spending in the US—a greater percentage than all traditional media combined.

By the end of the forecasting period (2022), mobile ad spending is expected to more than double that of TV. The channel will make up $141.36 billion of US media ad spending, while TV will account for $68.13 billion.

Our mobile technology.

Zonetail continues to upgrade its technology with features and functions derived from user experience.
The recent integration of advanced location-based geo-fencing technology adds real-time, physical context, along with a richer understanding of customer intent to the Zonetail platform. It also adds to Zonetail’s analytics suite, tracking attribution, ROI, and customer behavior with contextual data.

This new integration allows Zonetail to capture behavior-based user data with pin-point accuracy down to five meters, versus most competitive technology at 100 meters.

For advertisers it means they can precision target users with offers at the time and place they’re most likely to respond. For hotels it means they can improve their online reputations and scores, as well as improve guest response to promotions such as food and beverage specials.

Management, advisors, and board.

The collective experience of Zonetail’s management team has decades in hospitality marketing and digital technology specifically suited to making the company a success.

Meet the team

A new company with a 50-year history.

Zonetail is the continuation of a legacy business, called Kingsway Agencies. Started in 1960, Kingsway was the oldest company in North America supplying hotels with in-room printed guest directories. All of the learning gained from over 50-years experience in the hospitality industry is in our pedigree. Packaged in an elegantly simple, and easy to use design, Zonetail is the modern remix of that business, and is the mobile solution hotels are looking for.

So, why invest in Zonetail?

Zonetail dominates in hotel distribution, rolling out to 25,000 hotels, representing over 50% of the US, and more than 12% of the global market.

Zonetail dominates in condo distribution, rolling out to 2000 buildings, representing 400,000 units, and 20% of the greater Toronto area market.

Through Zonetail’s mobile app, advertisers can now benefit from constant access and engagement with hard to reach hotel guests and condo residents that they’ve never had before. This allows Zonetail to capture its share of the projected US mobile ad spend at $87.06 billion in 2019, rising to a projected $141.36 billion in 2022.

The recent integration of advanced location-based geo-fencing technology will add real-time, physical context, along with a richer understanding of customer intent to the Zonetail platform. It allows Zonetail to capture behavior-based user data with pin-point accuracy down to five meters, versus competitive technology at 100 meters.

Zonetail is exploring new technology and revenue streams including the development of a direct hotel booking engine to benefit our hotel partners, our users, and our shareholders.

The collective experience of Zonetail’s management team has decades in hospitality marketing and digital technology specifically suited to making Zonetail a success.

How to invest in Zonetail.

Zonetail is listed on the TSX Venture Exchange, ZONE:TSXV. The company’s common stock is available for purchase online, through a registered stockbroker. Most online brokerage firms also allow you to purchase stock. For more information contact us: ir@zonetail.com

Forward looking statements and legal disclaimers.

This presentation contains forward-looking statements that relate to Zonetail’s current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to” or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Zonetail has based these forward-looking statements on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, among other things, statements relating to: anticipated use of proceeds from the offering; stability and growth of the global hotel industry; continued reliance of consumers on mobile device applications; the acceptance by hotels/condos and consumers of new technologies; the acceptance by hotels/condos and consumers of blockchain related technologies; Zonetail’s ability to attract agreements with new hotels/condos and develop and maintain existing agreements with hotels/condos; Zonetail’s ability to retain key personnel; Zonetail’s expectations with respect to its ability to develop future generations of the application; Zonetail’s ability to develop a hotel booking platform using blockchain technology; regulatory developments, particularly in respect of blockchain, and the regulatory environments in which Zonetail operates; Zonetail’s competitive position and its expectations regarding competition (including other developers of blockchain hotel booking platforms); trends in the hotel industry and markets; our ability to expand our sales and distribution infrastructure and our marketing in order to attract advertisers; our ability to develop products and technologies that keep pace with the continuing changes in technology, evolving industry standards, new product introductions by our competitors and changing client preferences and requirements; our ability to protect our technology and intellectual property rights; our ability to avoid IT systems-related failures, data privacy risks and obligations, and/or security breaches; expectations regarding Zonetail’s revenue, expenses and operations; anticipated industry trends; our ability to raise additional capital; revenue growth guidance; future growth plans and growth strategy; anticipated future development dates in connection with future versions of the application and the Condo app; our ability to successfully complete an RTO and publically list Zonetail.Forward-looking statements are based on certain assumptions and analysis made by Zonetail in light of its experience and perception of historical trends, current conditions and expected future developments and other factors Zonetail believes are appropriate, and are subject to risks and uncertainties. Although Zonetail believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, prospective purchasers should not place undue reliance on these forward-looking statements. Whether actual results, performance or achievements will conform to Zonetail’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, and include: lack of profitability in the future; Zonetail’s history of losses; no assurance that any of the contemplated products will generate sustainable earnings or provide a return on investment in the future; no market for the securities of Zonetail; limited operating history as a development stage company; shares in Zonetail are not freely tradable during a restricted period under securities laws; dependence on certain entities for advertisement placement; competition within Zonetail’s markets; the requirement to develop the “Zonetail” brand in order for Zonetail to be successful; rapid technology developments in Zonetail’s markets and the dynamic nature of the hotel industry; possible defects in products and services delivered by Zonetail; risks associated with loss or theft of user data gathered by Zonetail; risks associated with entering new business areas and geographic markets; risks associated with building Zonetail’s operations and financial infrastructure as it scales its business; defects in Zonetail’s information technology infrastructure; Zonetail’s reliance on communications networks owned by the third parties; the Zonetail app’s reliance on third-party platforms; risks from potential failure of Zonetail’s systems; risks associated with displaying third party content; risk related to Zonetail’s dependence on key personnel; risks from periodic litigation involving Zonetail; risk related to increased competition in the hotel industry; risks related to declines or distributions in the hotel and travel industries; payments-related and fraud risks; risks of hacking, theft or exploitation of blockchain; risk relating the regulatory regime governing blockchain; risks related to the acceptance of blockchain technologies; risks related to regulatory changes concerning cryptocurrencies; risks related to bankingservices and cryptocurrencies; risks associated with potential intellectual property actions; risks related to our dependence on mobile data networks; risks related to our dependence on the internet; risks related to the government regulation of mobile data networks and the internet; our ability to raise adequate capital; changes in accounting and tax rules (whether expected or unexpected).In addition to statements relating to the matters set out above, this presentation contains forward-looking statements related to our target operating model. The model speaks to an objective only, and is not a forecast, projection or prediction of future results of operations.Although the forward-looking statements contained in this presentation are based upon what Zonetail’s management believes are reasonable assumptions, these risks, uncertainties, assumptions and other factors could cause the actual results, performance, achievements and experience to differ materially from Zonetail’s expectations, future results, performances or achievements expressed or implied by the forward-looking statements.The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this presentation and are expressly qualified in their entirety by this cautionary statement. Except as required by law, neither we nor the agent assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.An investor should read this presentation with the understanding that Zonetail’s actual future results may be materially different from what Zonetail expects.Certain information contained herein includes market and industry data that has been obtained from or is based upon estimates derived from third party sources, including industry publications, reports and websites. Third party sources generally state that the information contained therein has been obtained from sources Zonetail believes can be reasonably relied-on, but there is no assurance or guarantee as to the accuracy or completeness of included data. Although the data is believed to be reasonably reliable, neither Zonetail nor its agents have independently verified the accuracy, currency or completeness of any of the information from third party sources referred to in this presentation or ascertained from the underlying economic assumptions relied upon by such sources.”“No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this presentation, and any representation to the contrary is an offence. Neither Zonetail nor any agent of Zoneatil makes any representation or warranty, express or implied, and assumes no responsibility for the accuracy or completeness of the information contained in the presentation or any other oral or written communication transmitted to prospective investors, and nothing contained in this summary is, or shall be relied upon as, a promise or representation by Zontail or any agent of Zonetail as to the past or future performance of Zonetail. Zonetail retains the right, at any time, to terminate any discussions or negotiations with prospective investors. In the event of such termination Zonetail will not be under any obligation to disclose the reasons for such termination nor will they have any liability to any recipient hereof for any costs whatsoever incurred in the consideration of the information contained in this presentation.ConfidentialityThese materials are confidential, are being made available to selected recipients only and are solely for the information of such recipients. These materials must not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose without the prior written consent of Zonetail. By accepting these materials, you agree to keep all information strictly confidential and not use any of the information presented herein other than solely for the purpose of the terms of the offering.