Developing Data-Driven Social Media Analytics Technology
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Datametrex AI Limited (TSXV:DM) is a technology-focused company that acquires or partners with organizations developing best-in-class, disruptive technologies. Datametrex then scales and positions these companies for long-term growth and value creation before spinning them out into stand-alone public entities.
Datametrex’s wholly-owned subsidiaries, Nexalogy and Canntop, utilize artificial intelligence (AI) and machine learning technology to provide data to businesses and government agencies.
Nexalogy has a patented, scalable technology that analyzes social media data to find new audiences, trends, risks and voters and removes spam for government agencies and businesses. At the core of the technology is the recently developed NexaIntelligence, which identifies fake news and has many applications for government agencies.
Currently, Datametrex is working on numerous government contracts and has completed its first milestone for the Canadian Department of Defense’s Innovation for Defence Excellence and Security (IDEaS) program. The company is also a vendor for the US federal government. The company’s social media threat detection technology is also going to be tested by several NATO partners.
In September 2018, Datametrex formed Canntop to serve the global cannabis industry. Canntop utilizes Nexalogy’s technology to provide government agencies, cultivators and dispensaries with business intelligence to help them understand their clients and markets in the areas of patient analysis, strain and protocol management and quality assurance.
The company also provides secure data transfers that utilize blockchain technology through its investee company, Graph Blockchain Inc. (CSE:GBLC). The company is working with numerous major multinational companies and their subsidiaries, such as IBM (NYSE:IBM), Samsung (KRX:005930), LG (KRX:066570), Hyundai (KRX:005380) and the Canadian Ministry of Trade and Agriculture.
- Over three billion social media users worldwide.
- Global social media analytics market to reach $16.37 billion by 2023.
- Global cannabis market to reach $57 billion by 2025.
- One patent granted and another pending approval in the US and Canada.
- C$1 million in contracts secured to date.
- Vendor to the US federal government, which spent approximately $85 billion on technology in 2018.
- Working towards securing a 12-month, $1 million contract with Canada’s Department of Defense.
- Investee company, Graph Blockchain, has partnerships and agreements with IBM, Samsung and LG.
- Led by an experienced team of operators and capital market professionals.
- Management notably holds 30 percent of company shares.
Social Media Analytics
There are over three billion social media users across the globe. Social media is one of the most widely-used marketing tools used to gain actionable insights from consumers on products and services. Many public and private entities use social media to market their products to consumers, build brand awareness and gauge public opinion on products and trends, among other applications.
According to a Research and Markets report, the global social media analytics market is expected to reach $16.37 billion by 2023. The growth of the market is due to the increasing number of social media users and spending on analytics.
Social media analytics combines monitoring, measurement and analysis tools to uncover user sentiment and identify key trends in the market. These tools allow users to decipher vast amounts of data from various social media platforms, such as Facebook (NASDAQ:FB), Twitter (NYSE:TWTR) and Instagram, to determine customer sentiment about brands and trends, customers concerns, the efficacy of marketing campaigns and competitor intelligence.
However, social media can be abused by those wishing to spread misleading information that can affect perceptions of important issues, such as elections. This has created the need for interactive platforms that detect deceptive posts.
Nexalogy is Datametrex’s wholly-owned subsidiary and is aimed at disrupting the social media intelligence market by offering advanced intelligence functionality. Nexalogy has a patented technology with a second patent pending in Canada and the US.
The technology is offered as a software as a solution (SaaS) to government agencies and retail brands and has applications for internet of things (IoT) smart cities. The company has a growing presence in Asia and Europe and has diversified its revenue streams by targeting small-cap public companies with ad buy offerings.
Nexalogy’s technology utilizes a social discovery engine that analyzes data to find new audiences, trends, risks and voters and removes spam. The technology has applications for companies and government agencies wanting to understand their influence online and identify fake news.
To date, Nexalogy collects data from over 500 million tweets a year and has access to over 85 million blogs and 8.8 million Facebook pages, giving Datametrex an advantage when analyzing profiles and other unstructured data and when marketing itself to companies and government agencies.
The discovery engine uses conversation sculpting and algorithm clustering to provide insights and cleans unstructured text. The algorithms are also able to identify themes, people, relationships, topics and content, which can be filtered out to deliver the most relevant content. Datametrex uses interactive visuals to display the collected data.
The technology is a scalable distribution system that cleans and processes data from various sources on the web to produce reports and visualizations. Datametrex can scale the platform to include the ever-increasing social data generated on the internet, especially in the wake of significant events or unforeseen developments.
Fake news application
Datametrex has developed, NexaIntelligence, a solution that identifies fake news. The solution incorporates a semantic dimension analysis, which shows users the overall sentiment on the internet towards specific posts and topics.
“We are thrilled to be first movers in this space. Fake news is a serious problem for both the public and private sectors, and we look forward to offering our solutions to help combat misinformation,” said Datametrex COO and President Jeff Stevens.
The solution ranks content sentiments in over 100 categories and looks for foreign misinformation and propaganda in social media conversations, which could affect politics or prominent social issues.
To date, the company has successfully identified multiple sources of fake news on social media through various initiatives and programs.
“We believe that both these targeted markets around fake news and artificial intelligence in the cannabis sector will provide Nexalogy with a strong foundation to complement its existing government business. Harnessing the power of our patented AI algorithms in these markets is the next step in our evolution,” said Stevens.
Partnerships and Clients
Datametrex is continually forming partnerships in various industries to expand their social networks and data points. The company has partnerships in place with multiple discussion forums, blogs and news sites, among others.
US Federal Government
In January 2019, Datametrex became an approved vendor to the US federal government. In 2018, the US government spent approximately $85 billion on technology, providing the company with a substantial opportunity to expand its services in the US.
“Nexalogy’s expertise in the areas of social media monitoring and intelligence, fake news filtering and other machine learning applications are in great demand from government agencies and other organizations. Datametrex through its Nexalogy division is well positioned to capitalize on these accretive opportunities in Canada, US and internationally,” said Datametrex Chairman and CEO Andrew Ryu.
Datametrex secured its first sale in the US in May 2019.
Canadian Department of Defense IDEaS Program
Datametrex is participating in the Canadian Department of Defense’s IDEaS platform, a 20-year, $1.6 billion program that invests in defense and security innovations.
“The IDEaS program will provide unique opportunities for Canadians to put forward their best solutions on defense and security challenges and will help put those solutions into the hands of the women and men of the Canadian Armed Forces. This investment will support the growth and expansion of Canada’s innovation community for the next 20 years,” said Canadian Minister of National Defense Harjit S. Sajjan.
The company has completed its first milestone in the program and has been issued $93,000. Datametrex is currently working on the second milestone, which will bring the total value of the opportunity up to $200,000. Once this step is completed, Datametrex will be eligible for a 12-month, $1 million contract.
“We are thrilled to progress to the next phase of this project. Our team is doing a great job delivering on the objectives, and we look forward to continuing to work with the Canadian government in helping to solve potential security risks,” said Ryu.
Korea Press Foundation
Datametrex has secured an initial one-year contract with the Korea Press Foundation (KPF), a non-profit organization for the media and public interest sector. Under the terms of the agreement, Datametrex will be implementing its NexaIntelligence and fake news filter across a variety of content and media channels to help the KPF ensure the viability and integrity of the traditional and social media content the organization publishes. The AI technology will also deliver more targeted constituents and press members across Korea.
“This is an exciting opportunity for Datametrex and its product portfolio. Bringing our artificial intelligence to social media and content platforms through an organization like the Korean Press Foundation only further validates our capabilities. The leading social media hubs can leverage the distribution channels of this Institute in Korea allowing us to be part of a key integration process,” said Ryu.
Datametrex has secured a contract with HomePlus, the second largest retailer in South Korea, for predictive analysis. HomePlus operates a supermarket chain that is comprised of 365 convenience stores and an online shopping service. The retail operation offers everything from groceries to clothes and appliances. Under the terms of the agreement, Datametrex will be deploying its NexIntelligence solutions in several departments that have a strong requirement for AI and predictive analysis.
“To be selected by such a large retailer for our solution is compelling and will open up a lot of opportunities in the predictive analytic space. The need for AI and machine learning plays a key role in analyzing various data formats that retailers collect and is a major technology initiative at HomePlus.” said Ryu.
In September 2018, Datametrex formed its subsidiary, Canntop AI Inc., to serve the global cannabis industry, which is expected to reach $57 billion by 2025. Canntop utilizes Nexalogy’s toolset and algorithms to analyze unstructured datasets in the agriculture and cannabis industries.
“Taking our proven solutions and focusing them on this sector will add tremendous value to growers, dispensaries, pharma and government agencies. The large amount of data that will result from the legalization of marijuana creates an opportunity for Canntop AI to provide the industry the most effective social intelligence,” said Ryu.
Canntop will provide government agencies, cultivators and dispensaries with business intelligence to help them better understand their clients and markets in the areas of patient analysis, strain and protocol management and quality assurance.
Partnerships and Clients
In February 2019, Datametrex partnered with Empower Clinics Inc. (CSE:EPW) to create an AI pilot program to analyze and gain insight into Empower’s patient data, physician treatment recommendations and long-term efficacy of patient care.
The pilot will utilize Empower’s patient information to determine if Datametrex’s technology can generate insight into how patient care and physician-guided treatment recommendations impact patients. Empower will use Canntop’s platform for insights into overall interest in CBD-based products, alternative pain management options and the use of cannabis-based therapies.
“Datametrex has already utilized its Nexalogy AI solution for Health Canada studies in the cannabis sector to understand consumer usage and patterns based on massive social insights generated through social media channels,” said Stevens. “We believe an AI pilot with Empower has the potential to provide disruptive insights that alternative care options can provide people around the world.”
To date, Empower has provided select SEO terms and phrases that target the cannabis markets in Portland, Oregon and Pheonix, Arizona to Datametrex. The Canntop platform is starting to show how patients in these two markets are talking about and describing their experiences and ideas. Patients are also providing recommendations for alternative therapies and their effectiveness in treating a variety of conditions.
Graph Blockchain is the product of a joint venture between Datametrex and Bitnine Global Inc. that provides state-of-the-art private blockchain solutions for enterprise applications. The company is based on existing relationships, developing channel partnerships, direct sales and a “land and expand” strategy through the subsidiaries of multinational clients. Graph Blockchain helps its partners replicate their solutions in high-growth markets, such as the global food supply chain management, cannabis and logistics industries.
Graph Blockchain has been spun out into a separate entity but retains access to the technology and networks of its parent companies. To date, the company has been granted two patents in South Korea and has two patents pending in the US.
Graph Blockchain’s blockchain solution gives their clients near-real-time business intelligence and database management. The technology uses IBM’s Hyperledger Fabric blockchain technology and Bitnine’s AgensGraph graph database, which allows data on the blockchain to be computed faster than using a traditional or relational database. When combined, the blockchain and graph database components drive the company’s platforms.
Partnerships and Clients
Graph Blockchain has developed a varied portfolio of partnerships and clients from numerous sectors with subsidiaries of major multinational companies, including IBM, Samsung, LG, Hyundai and the Canadian Ministry of Trade and Agriculture.
Andrew Ryu — Chairman and CEO
Andrew Ryu is a seasoned and experienced entrepreneur and operator in public and private companies. He is the founder and CEO of TLA Inc., president of business development of Archer Education Group and founder and former CEO of Loyalist Group Limited, which was nominated as the top TSXV company in 2013, ranked fourth in 2014 and was the top pick of the street in 2014. He was nominated of EY Entrepreneur of the Year in 2014.
Jeff Stevens — COO and President
Jeff Stevens brings over 18 years of professional experience in the Canadian capital markets, largely focusing on raising capital for micro-cap and small-cap companies. He currently sits on the board of two public companies assisting with project selection and financing. He has worked on the retail, buy and sell sides of the industry, having held positions as Assistant Investment Advisor, Arbitrage Trader and was the head of two sales and trading desks for a US-based investment bank in Toronto. During his tenure, he was involved in raising over $500 million for public and private companies with a client base including institutional money managers, hedge funds, mutual funds and family offices in Canada, the US and Europe.
Randy Clifford — CFO
Randy Clifford has over 25 years of corporate management and consulting experience with numerous public and private companies in a variety of industries. He was the Chairman (1996 to 2006), CEO (1999 to 2006) and director (1996 to 2006) of Cash Canada Group Ltd. During his tenure with Cash Canada, he organized the company’s graduation from Tier 2 to Tier 1 issuer status on the TSXV and assisted in procuring debenture and bank financing.
Clifford was a director of Firebird Capital Partners Energy Inc., a capital pool corporation (CPC) on the TSXV, now Emerald Health Therapeutics Inc., with a market capitalization in excess of $100 million. He was a director and officer of Wise Oakwood Ventures Inc. (WOW), a CPC listed on the TSXV. He spearheaded WOW’s qualifying transaction with Zomedica Pharmaceuticals Corp. in April of 2016. Zomedica is now a Tier 1-listed company on the TSXV with a market capitalization of approximately $250 million.
Michael Frank — CSO
Michael Frank brings over 30 years of experience in the high technology sector in operations, business development, M&A and raising funds in the capital markets. As President of Mifran Consulting, he focused on strategic planning and business development for emerging companies. From 2007 to 2011, he was the CEO of Sprylogics International Corporation., a software company focused on semantic and local search and served as a consultant until March 2014. Additionally, he was Executive Vice President of Hutchison Avenue Software, one of the first real-time online stock quote platforms, where he was instrumental in the sale of the company to Intuit Corporation. He also served as Vice President of Business Development at BrandEra.com, a Nasdaq-listed online marketplace for the advertising community.
Early in his career, Frank started as a Principal with Woods Gordon (Ernst Young), where he managed a variety of projects and consulting assignments across key vertical markets. As Vice President of Strategic Alliances at Medcomsoft Inc., he developed and managed all strategic partnerships to accelerate market penetration in the healthcare industry. He has held senior sales and marketing roles at Data General and NCR. He is a graduate of McGill University.
Charles Schade — Director
Charles Schade is a senior level marketing executive in the insights industry, with a proven track record for strategically identifying opportunities and launching new products successfully. He leads, motivates and attracts high-performance teams by inspiring staff and committing to ongoing coaching and mentoring. As a founder and former President of NPD Canada, and with over 25 years of sales and servicing experience, takes ownership of goals for companies and clients. He embraces industry leadership roles through speaking engagements at industry functions.
Janeen Stodulski — Director
A graduate of Brock University, Janeen Stodulski received her CPA designation in 1999, her MBA from Queen’s University in 2002 and recently completed her in-depth taxation with CPA Canada. She brings over 28 years in diverse tax, financial and business consulting experience to the table. She has gained extensive accounting experience through her senior roles in public practice and C-suite roles in a variety of companies. Her extensive expertise allows her to provide outside the box strategies and solutions in addition to comprehensive accounting services.
With love for technology, she brings a special focus to cloud accounting solutions. She is the innovator of the Grant Thornton Cloud Accounting solution and is currently working as the Client Service Director for Grant Thornton. She has received numerous awards and appointments during her career, including an appointment to the Prime Minister’s Task Force on Women Entrepreneurs, Ontario and Chapter Distinguished Service awards with CGA, Royal Bank Women Entrepreneurs finalist and Oakville Community Environmental Award.
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