Zedcor Achieves Manufacturing Milestone of 25 Towers Per Week and Provides Update on U.S. Expansion and Limited Exposure to Tariffs

Rhea-AI Summary

Zedcor Inc. (TSXV: ZDC) has reached a manufacturing milestone of 25 towers per week, with plans to increase to 30 towers weekly in Q2 2025. The company targets manufacturing 1,200-1,400 towers in 2025, primarily for U.S. market deployment.

The company's fleet now exceeds 1,500 towers, with approximately 500 in the U.S. Texas operations have grown to 400 towers in 12 months, while Denver approaches 100 units. Expansion plans include Phoenix, Atlanta, Las Vegas, and California by Q3 2025.

A new monitoring center in Houston is scheduled to open in Q2 2025 to service the U.S. market. The company reports minimal impact from tariffs, with 2025 fleet expansion cameras pre-ordered in 2024 and 35% of steel components procured before tariff implementation. Raw steel components represent less than 10% of total MobileyeZ™ Security Tower capital costs, with no exposure to Chinese components.

Positive

• Achieved manufacturing target of 25 towers/week ahead of schedule
• Fleet near full utilization in U.S. market
• Rapid U.S. expansion with 400 towers deployed in Texas within 12 months
• exposure to tariffs with pre-ordered components and no Chinese sourcing
• Ability to offset future cost impacts through pricing adjustments

Negative

• Production capacity constrained by component supplier limitations
• Potential future impact on costs from tariffs may require price increases

Calgary, Alberta--(Newsfile Corp. - March 11, 2025) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce that it has achieved a significant milestone, manufacturing 25 towers per week ahead of the budgeted timeline, with a further expansion expected to 30 towers per week in the second quarter of 2025, as component suppliers match the Company's capacity. The manufacturing target for 2025 is now 1,200-1,400 towers, with most of the growth in the fleet to be deployed in the U.S. market.

Sales continue to be robust, with the fleet near full utilization in the U.S. as expansion to new States has been met with latent demand. The fleet is now comprised of more than 1,500 towers, with approximately 500 in the U.S. The fleet in Texas has grown to approximately 400 towers after only 12 months of dedicated sales in the State, while Denver is already approaching 100 towers. Zedcor has hired sales people in Phoenix and Atlanta and is targeting Las Vegas and California for further expansion by the third quarter of 2025. Discussions with enterprise customers are advancing as the Company has been able to showcase its distinct competitive advantages relative to competitors. A new state-of-the-art monitoring center in Houston is expected to be operational in the second quarter of 2025 and will service the U.S. market.

The Company has assessed the impact of tariffs and does not anticipate a material impact to its financial results. Cameras for its 2025 fleet expansion were ordered late in 2024 and the supplier does not intend to adjust prices, while approximately 35% of steel components were also procured prior to tariffs being imposed. Raw steel components comprise less than 10% of total capital costs of each MobileyeZ^TM Security Tower. The Company also highlights that exposure to components from China are immaterial and will not impact tower capital costs going forward as none of the Company's steel, camera and communication equipment is sourced from there. The Company will aim to offset any future impact to tower capital costs by pricing adjustments with customers to maintain internal ROI targets.

Todd Ziniuk, President and CEO of Zedcor, commented: "We continue to execute on our corporate objectives ahead of schedule and are encouraged to see that new towers in the fleet have been immediately absorbed, even with significant step-changes to production rates. We believe that we are in very early innings of our growth plan, achieving approximately 500 towers deployed in the U.S. after just 12 months with a dedicated sales team. Our hub and spoke model for sales and service is proven and we look forward to servicing our customers with a new centralized, state-of-the-art monitoring facility in Houston, which will be operational in the second quarter of 2025. Zedcor expects to be mostly insulated from tariff impacts and will continue to assess impacts in the future, which we believe could be offset by pricing power inherent in our value proposition to customers".

About Zedcor Inc.

Zedcor Inc. is disrupting the traditional physical security industry through its proprietary MobileyeZ^TM security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The Company continues to expand its established MobileyeZ^TM platform in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes, and continued innovation. Zedcor services the Canadian market through equipment and service centers currently located in British Columbia, Alberta, Manitoba, and Ontario. The Company continues to advance its U.S. expansion which now has the capacity to service markets throughout the Midwest with locations throughout Texas and in Denver, Colorado, with a location in Phoenix, Arizona expected in the second half of the year.

Forward-Looking Statements and Information

Certain statements included in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information can be identified by terminology such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "target", "budget", "should", "project", or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, the expansion of Zedcor's Security and Surveillance business, fleet expansion, marketing of security services, expansion of Zedcor's service offering to other geographic regions and the impact of tariffs on the Company's business and financial results. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements or information because the Company can give no assurance that such statements or information will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties, including current forecasts and utilization. Although management of the Company believes these expectations and assumptions reflected in these forward-looking statements or information to be reasonable, there can be no assurance that any forward-looking statements or information will be proved to be correct, and actual results may differ materially from those anticipated in such statements or information. For this purpose, any statements or information contained herein that are not statements or information of historical fact may be deemed to be forward-looking statements or information and readers should not place undue reliance on such forward-looking statements or information. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless the Company is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

For further information contact:

Todd Ziniuk
President & Chief Executive Officer
P: 403-930-5430
E: tziniuk@zedcor.ca

Amin Ladha
Chief Financial Officer
P: 403-930-5430
E: aladha@zedcor.ca

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/244077

FAQ

What is Zedcor's (ZDCAF) current tower manufacturing capacity and 2025 target?

Zedcor currently manufactures 25 towers weekly, targeting 30 towers per week in Q2 2025, with a total 2025 production goal of 1,200-1,400 towers.

How many security towers does ZDCAF operate in the U.S. market?

Zedcor operates approximately 500 towers in the U.S., with 400 in Texas and nearly 100 in Denver.

What is ZDCAF's expansion strategy for 2025?

Zedcor is expanding to Phoenix, Atlanta, Las Vegas, and California by Q3 2025, with a new Houston monitoring center opening in Q2 2025.

How will the recent tariffs impact ZDCAF's operations?

Minimal impact expected as cameras were pre-ordered in 2024, 35% of steel components were procured pre-tariffs, and the company has no exposure to Chinese components.