US-based provider of integrated solutions for retail Provision Holding has secured 100% ownership of 650 kiosks in Rite Aid stores.
The ownership follows after Provision reached a lawsuit settlement related to its collaboration agreement with Rite Aid.
Under the settlement terms, Provision is not subject to any settlement-related costs, nor any future revenue obligations to Rite Aid upon kiosk redeployment.
As part of the agreement, Rite Aid should return all kiosks to Provision by the end of this year, which the latter party will repurpose and redeploy with other retailers during next year.
Provision chief executive officer Mark Leonard said: “We are pleased to have resolved the litigation with Rite Aid on favourable terms that allow Provision to focus on executing on its growth strategy.
“We are now sufficiently capitalised with our recently completed $2m in funding to allocate resources towards expanding our network of 3D toppers in US grocery stores.
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“We expect redeployment of these kiosks across the retail channel in 2019 to further expand the scale of the Provision advertising network, and provide an additional tailwind of operating momentum.”
In addition, Provision is currently working with its auditors, lawyers and finance group to complete and file all required documents related to its 10-K by the end of this year.
In a statement to shareholders in 2017, Provision’s then chairman and CEO Curt Thornton said: “Although our agreements with Rite Aid called for us to install Provision 3D Savings Center kiosks across its more than 4,500 US retail location footprint, the rollout stalled in 2016, as Rite Aid’s focus was on their acquisition by Walgreens.
“While there is not yet a clear understanding of the outcome, Provision remains committed to servicing the installed base of approximately 700 Rite Aid stores across the top ten demographics in the US.”