Ontario-based technology company American Aires Inc. (CSE:WIFI) announced Thursday that it has signed a monumental distribution partnership with leading American multinational consumer electronics retailer Best Buy Co. (NYSE:BBY).
The agreement, which was signed less than a month after the company’s IPO on the Canadian Securities Exchange (CSE), will see American Aires’ products sold online at bestbuy.ca. The Best Buy Marketplace will also promote the company’s products to its 5.8 million e-newsletter subscribers and expand visibility via forums, blogs, product reviews.
Best Buy receives 250 million visits per year and 2.3 million orders annually, making this partnership a powerful marketing conduit to help American Aires increase sales in Canada.
All of Aires’ products are now available for purchase on Best Buy Marketplace Canada at bestbuy.ca under ‘Aires tech’ and product sales have commenced.
“We are excited to see Aires Tech products to become the first of their kind in offering EMF protection to be featured in the Best Buy Marketplace,” said American Aires CEO Dimitry Serov. “Our sales target exiting 2020 is 1,000 orders a day. With our Best Buy Online Marketplace Agreement now signed and operational, we are one step closer to achieving this target.”
Serov added that the company plans to actively pursue similar agreements in the US, Europe, and Canada this year.
American Aires Launches Products to Highly-Anticipated 5G Market
The distribution partnership between American Aires and Best Buy couldn’t come at a better time. Just last week, the company revealed four new key products designed specifically for the emergence of much-anticipated 5G cellular technology.
For those who aren’t familiar, American Aires has developed a line of devices that can protect consumers and their families from the potentially harmful electromagnetic radiation (EMR) being emitted from smartphones and other data transmitting devices including laptops, tablets, smart TVs, Wi-Fi routers and even baby monitors.
The company’s new 5G compatible devices will be available in the second quarter of 2020.
American Aires also announced the launch of its own global e-commerce website last week, which is expected to be fully operational later in Q1 2020.
The new online marketplace will facilitate sales all over the world, offering American Aires products in multiple languages and jurisdictions. What’s more, its back-end system will be capable of supporting up to 10,000 sales transactions daily.
Of course, partnering with Best Buy is clearly a strategic move to target the Canadian market due to the sheer volume of orders and visits to its marketplace. Despite Amazon’s online dominance, Best Buy has managed to remain a force to be reckoned with in the consumer electronics sector, posting better-than-expected revenue in Q3 2019 and increasing its FY 2020 guidance.
Despite the exciting announcement, American Aires stock was down 3.28% Thursday, dropping to C$0.59. However, this slight drop comes after two months of consistent stock appreciation from its IPO price of C$0.29 up to a high of C$0.70 on January 10, 2020. According to Morningstar, American Aires stock is undervalued and trading at a 20% discount from its fair value price of C$0.76.
The company generated C$138,207 in revenue in the last quarter and C$477,172 for the current fiscal year. Investors will likely want to keep an eye on how the company’s sales pan out in Q1 2020.
Featured Image: American Aires
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