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Adcore is providing digital advertisers with the tools to improve online advertising effectiveness

Provides search engine marketing software solutions and services via automation and machine learning technologies Targets three key digital advertising market segments – search engine marketing, social media marketing, and shopping Customers include enterprise companies, and small and medium-sized businesses from Asia-Pacific, Europe, the Middle East, and North America
What Adcore does: Adcore Inc (TSX:ADCO) (OTCQX:ADCOF) (FRA:ADQ) provides search engine marketing software solutions and services via automation and machine learning technologies. Using proprietary machine-learning artificial intelligence (AI) technology, the US OTC and Canadian-listed, Israeli-based company’s cloud-based suite of software-as-a-service (SaaS) products provide digital advertisers with smart algorithm-powered automation tools and reporting and analytics in order to help them improve online advertising effectiveness, maximize their return on advertising investment, and scale-up their digital campaigns. Adcore has targeted three key digital advertising market segments with its products and technologies: search engine marketing, social media marketing, and shopping. The company’s customers include enterprise companies, and small and medium-sized businesses from Asia-Pacific, Europe, the Middle East, and North America. By combining extensive industry knowledge and experience with its proprietary artificial intelligence engine, Adcore offers a unique digital marketing solution that empowers entrepreneurs and advertisers by managing and automating their e-commerce store advertising, and monitoring and analyzing the performance of their advertising budget to ensure maximum In addition to being named numerous times to Deloitte’s Fast 50 Technology list, Adcore is a certified Google Premier Partner, Microsoft Partner, Facebook Partner and TikTok Partner. Established in 2006, the company employs over fifty people in its headquarters in Tel Aviv, Israel and satellite offices in Toronto, Canada, Melbourne, Australia, Hong Kong and Shanghai, China. How is it doing: Adcore has been making solid progress so far in 2021, inking new contracts, raising new capital and reporting strong revenue and profit growth. Most importantly, on July 21 Adcore kicked off the launch of Amphy, the world’s most diverse, as well as largest round-the-clock live online learning marketplace. The company said it is “committed” to supporting the expansion of Amphy through “capital investment, technical backing and marketing expertise” to ensure its successful launch and ongoing development. Amphy launched in beta only six months ago and has already screened and onboarded “200+ teachers and is actively offering 800 classes across 70 categories” to thousands of students, said the company. On the contract front, in May Adcore announced that it had entered into an agreement to provide its digital marketing technologies and services to Israel’s largest department store chain, Hamashbir Lazarchan Department Stores Ltd. The company will provide digital marketing services to the chain’s 36 retail locations across Israel and will also support the chain’s newly launched ecommerce site. The contract is valued at C$1.5 million. Earlier in the same month, Adcore revealed that it had signed a contract, renewable annually, to provide digital marketing technologies and services to MySale Group’s OzSale and NZSale websites. MySale is a leading international online off-price marketplace platform in Australia, New Zealand and Southeast Asia with over 20 million customers. The Group operates 12 websites offering off-price fashion, homewares, and health and beauty. And in April, Adcore announced that it had renewed its advertising contract with the Israeli Government Advertising Agency (IGAA) for another year at a potential value of C$25 million in ad-spend. The company is currently starting its fourth year of a five-year C$125 million contract with the IGAA to manage, jointly with Maple Team Ltd., a potential budget of C$25 million in online advertising spend per year, subject to the reopening of the Israeli border. The contract is renewable annually without requirement of further government tendering. With regard to its fundraising, on June 17, Adcore announced it had closed a marketed offering of 3.1 million units at a price of $1.33 per unit, raising gross proceeds of $4.12 million. Each unit consists of one common share of the company and half a warrant. Each warrant is exercisable into one common share for a period of 24 months from the closing of the offering at an exercise price of $1.80 subject to adjustment in certain events. The Warrants are trading on the Toronto Stock Exchange under the symbol “ADCO.WT”. Looking at its financials, on August 11 the company said total revenue increased 250% year-over-year to C$7 million in its second quarter that ended on June 30, 2021. Adcore also said its gross margin saw a significant increase sequentially to 46% from 23% in the 1Q of 2021 and its adjusted EBITDA for the quarter was C$1.5 million compared to C$0.5 million for the same quarter in 2020, an increase of 189%. As of June 30, 2021, Adcore said its total working capital was C$13.1 million, compared to C$7.8 million as of December 31, 2020. The company said it continues to see strong growth in its direct channel revenue stream, driven by a high level of e-commerce, digital transformation, and international expansion. Also in the 2Q, Adcore began trading on the OTCQX Best Market in the US and secured Depository Trust Company (DTC) eligibility. In the boardroom, on July 27, Adcore announced the appointment of Oded Orgil as an independent director to the company’s board, replacing Jason Saltzman, who will continue to act as Adcore’s Canadian legal counsel through the law firm Gowling WLG. Orgil is the president of the Canada Israel Chamber of Commerce and was previously a senior vice president with Canaccord Genuity. Inflection points:
More news on launch of Amphy Further expansion moves More customer wins
What the boss says: “I couldn’t be happier with our second-quarter results, which reflect the strong momentum we’re seeing in our business as we leverage our capabilities and innovative technology for e-commerce marketing as the online retail industry continues to grow exponentially,” said Adcore CEO Omri Brill in a statement.  “Globally, consumers increasingly shifted their shopping activity to embrace online purchasing during the pandemic and even as the worldwide economy reopens, e-commerce activity remains robust. Adcore’s technologies enable our retail partners to efficiently reach their target audiences to drive product interest and sales and Adcore’s market recognition as a premier MarTech resource for online retailers, both large and small, continues to increase.” Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham