ProStar Announces a Reduction in Operational Costs and Amends the Company’s Long-Term Incentive Plan

Rhea-AI Summary

ProStar Holdings has announced significant operational cost reductions and amendments to its long-term incentive plan. The company will reduce operating expenses by over CDN $1.3M, representing a 27% year-over-year decrease. These savings primarily come from cuts in R&D, investor relations, and long-term leases.

The company will now focus resources on sales and marketing, product enhancements, and customer support for its PointMan solution. Additionally, ProStar has amended its employee long-term incentive plan, reducing the number of shares available for issue from 28,961,427 (20% of outstanding shares) to 18,708,106 (12% of outstanding shares). Currently, 13,141,500 stock options are outstanding.

Positive

• Operating expenses reduction of CDN $1.3M (27% year-over-year)
• Strategic reallocation of resources towards revenue-generating activities
• Reduction in share dilution potential through decreased stock option pool

Negative

• Significant cuts to R&D spending could impact future product development
• Reduction in investor relations activities may affect market visibility

GRAND JUNCTION, Colo., Dec. 19, 2024 (GLOBE NEWSWIRE) -- ProStar Holdings Inc., ("ProStar^®" or "the Company") (TSXV: MAPS) (OTCQX: MAPPF) (FSE: 5D00), a world leader in Precision Mapping Solutions, announced it has taken additional measures to further streamline its operations and amended its employee long-term incentive plan.

These operational savings cumulatively will reduce operating expenses by over CDN $1.3M, representing approximately a 27% decrease year over year. The savings are primarily related to R&D, investor relations, and long-term leases. The Company’s focus and primary allocation of its resources going forward will be on sales and marketing, product enhancements, and customer support for its PointMan solution.

“We continue to take proactive measures to eliminate any expenditures that are not instrumental in driving revenue and providing measurable return on investment,” stated Page Tucker CEO and Founder of ProStar. “We are laser focused on driving sales and revenue with the goal of achieving positive cash flow operations.”  

The Company also announced an amendment to its employee long-term incentive plan to reduce the number of shares available for issue from 28,961,427 representing 20% of the Company’s outstanding shares to 18,708,106 shares which represents 12% of the Company’s outstanding shares. No other changes were made to the plan. The Company currently has 13,141,500 stock options outstanding which are held by the Company’s directors, officers, employees, and consultants.

About ProStar:
ProStar is a world leader in Precision Mapping Solutions and is creating a digital world by leveraging the most modern GPS, cloud, and mobile technologies. ProStar is a software development company specializing in developing patented cloud and mobile precision mapping solutions focused on the critical infrastructure industry. ProStar’s flagship product, PointMan, is designed to significantly improve the workflow processes and business practices associated with the lifecycle management of critical infrastructure assets both above and below the Earth’s surface.

ProStar’s PointMan is offered as a Software as a Service (SaaS) and has strategic business partnerships with the world’s leading geospatial technology providers, data collection equipment manufacturers, and their dealer networks. The Company has made a significant investment in creating a vast intellectual property portfolio that includes 16 issued patents in the United States and Canada. The patents protect the methods and systems required to digitally capture, record, organize, manage, distribute, and display the precise location of critical infrastructure, including buried utilities and pipelines.

For more information about ProStar, please visit www.prostarcorp.com.
Contact:
Page Tucker
CEO & Founder
ptucker@prostarcorp.com

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward-Looking Information

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the Company’s focus and allocation of its resources. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. 

In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will focus and allocate its resources as currently anticipated.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that the Company will not focus and allocate its resources as currently anticipated.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

This press release was published by a CLEAR® Verified individual.

FAQ

How much will ProStar Holdings (MAPPF) reduce its operational costs?

ProStar Holdings will reduce operational costs by over CDN $1.3M, representing approximately a 27% decrease year over year.

What areas are affected by ProStar's (MAPPF) cost reduction measures?

The cost savings primarily come from reductions in R&D, investor relations, and long-term leases.

How has ProStar (MAPPF) modified its long-term incentive plan?

ProStar reduced the number of shares available for issue in its long-term incentive plan from 28,961,427 (20% of outstanding shares) to 18,708,106 (12% of outstanding shares).

What is ProStar's (MAPPF) new strategic focus after the cost reductions?

ProStar will focus primarily on sales and marketing, product enhancements, and customer support for its PointMan solution.