As the world continues to grapple with the spread of Covid-19, UPI has taken the initiative to assist in the fight against the Coronavirus with its recently announced partnerships. On January 27th 2021, Universal PropTech announced that its wholly-owned subsidiary VCI Controls signed a partnership with AtmosAir Solutions, a clean air solutions company based in Fairfield Connecticut. Under the agreement, UPI will market and distribute AtmosAir Solution’s bi-polar ionization technology which mitigates bacteria, viruses including Covid-19 and mold commonly found both in the air and on surfaces. Here is a great clip about AtmosAir (link). The agreement enables UPI to distribute the bi-polar ionization technology across the provinces of Ontario and Québec.
The CEO of UPI Mr. Chris Hazelton stated that “UPI is committed to seeking out the best-in-class technology solutions for our clients to fight the spread of COVID-19 whether by way of ownership, investment, licencing or master distribution arrangements. We are excited and committed to aggressively pursue schools, universities and colleges, long term care facilities and other governmental facilities to deliver results with our 40-year proven integrated HVAC and Building Controls company”.
Microchem Laboratory, a world-renowned lab known for testing sanitization products registered by the EPA and FDA, reported that the coronavirus was reduced by 99.92% within 30 minutes when exposed to the BPI technology by AtmosAir.
In addition to adding UPI’s portfolio of covid-19 solutions, UPI announced on February 1st 2021 that the company has entered into a master distribution agreement with Air Alpine Innovation Research Inc. for the sales and marketing of Air Sniper products to the Atlantic provinces and Ontario and Québec. Proudly made in Canada, Air Sniper provides a variety of air sanitization products which utilizes germicidal UVC lighting and Photocatalytic Oxidation to kill airborne contaminants and purify the air.
Building on its core business of energy management and digital controls solutions, UPI also announced that it has entered into a channel partnership agreement with SensorSuite Inc. to provide its Multi-Residential and its non building automation systems customers an artificial intelligence driven Energy Cloud Ecosystem. Chris Hazelton, the CEO of UPI stated that “the inclusion of Artificial Intelligence is another tool in our expanding Building Performance offering to improve our evidence-based approach, ongoing services revenues and sustain our Trusted Advisor status.” The Energy Cloud Ecosystem is able to provide customers with an average savings of 20% to 30% on energy costs.
Lastly, on February 9, UPI announced that it signed a deal with LuminUltra Technologies Ltd. to deploy their GeneCount Rapid SARS-CoV-2 surface testing solution. The Agreement provides UPI the ability to provide testing services employing LuminUltra's GeneCount® qPCR tests as a service. VCI Controls, will utilize the LuminUltra GeneCount® qPCR test in order to provide audit support for the efficacy of the various indoor air quality equipment it is installing in customer facilities. In this way, VCI Controls will be able to provide clients with data demonstrating the real-world effectiveness of the air sanitization equipment it installs, along with peace of mind for owners and staff alike that Covid-19 is not present in their facilities.
Since the beginning of the year, UPI has solidified its pandemic management and safety oriented product offering to current and past customers which total over 2,000 facilities including certain aviation assets in Canada today. The rapid and efficient execution by UPI management team has been reflected in the market over the last few weeks as well.
On December 17th 2020, we first alerted UPI to investors at $.28 cents, in our article called “Universal PropTech Inc. (TSX-V: UPI) On High Alert”, which highlighted the Company’s core business, discounted valuation to annual revenue and recent agreements. Since then, UPI has surged 82% hit a 52 week high of $.51 cents with an average 10-day volume of 529,035.
With top tier clients who employ large workforces and operate public spaces that need solutions to keep their spaces safe and sanitary, UPI has secured three partnerships that will ensure that those clients not only remain happy but will increase their spending with UPI.
In our opinion management is doing and will continue to do a fantastic job of executing on the turnaround they announced in late 2020 - so far they are hitting every milestone they have said they would. Shareholders have thus far been rewarded with an increasingly liquid stock and share price appreciation as confidence in management builds and the story gets out. We believe that operational success will continue, value will be created and share price will maintain its northbound trajectory for quite some time given that UPI is still only trading at roughly 1.4x sales, a considerable discount to the peer group.
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