Provision Holding Inc. anticipates the number of 3D shopping kiosks it will install in Rite Aid Corp. stores may stay at 700 rather than the 4,500 it once anticipated, the software and technology firm announced Wednesday in a letter to shareholders.
Provision, a subsidiary of Provision Interactive Technologies Inc. in Chatsworth, announced the Rite Aid partnership in late 2014. Provision was able to place its product in around 700 Rite Aid locations before the effort was stalled by Walgreens’ attempt to acquire Rite Aid for $9.4 billion, a deal that was scrapped in June on account of antitrust concerns.
“We acknowledge that our stock and the perception of our company has been hampered over the past few years by the pace and scale of the commercial rollout into [Rite Aid stores],” Chief Executive Curt Thornton said in the letter.
In the past year, the price of Provision stock (PVHO) has fallen from 24 cents a share to 6 cents a share.
While the future of Rite Aid deal remains unclear, Provision has made significant strides its goal to increase the visibility of its kiosks, Thornton said. The company expects that its five-year partnership with Coinstar, which will see Provision’s holographic display and software technology installed in Coinstar kiosks, could generate monthly advertising revenues upwards of $20 million, Thornton said. A similar agreement with Prosperity Investments will involve putting Provision technology in 2,000 units of Prosperity’s Joyful ATMs.
“Although Joyful has limited name recognition and public presence compared with the likes of Coinstar or Rite Aid, we are excited by this opportunity to further expand Provision’s customer reach,” Thornton said. Provision also has reached a deal to place its kiosks in locations of Discount Drug Mart, a Midwestern pharmacy chain.
“We have never been more confident in the future prospects for Provision, and will continue to work tirelessly,” Thornton concluded. “(We) will not stop even once the progress we have made is more fairly reflected in the company’s stock valuation.”
Provision shares rose $0.004, or around 7 percent, on Wednesday to close at 6 cents on the over-the-counter market.