Closing system

OMNIQ announces the closing of the acquisition of an additional 23% of Dangot Computers, bringing its ownership to 100%

OMNIQ Corp.

• OMNIQ acquired 51% on July 1, 2021.

• OMNIQ exercised its option to acquire the remaining shares by acquiring an additional 26% from October 1, 2021 and an additional 23% from April 1, 2022, Dangot Computers (Dangot), a wholly owned (100%) subsidiary of OMNIQ.

Dangot is a leading profitable player in the field of automation and frictionless equipment for several vertical sectors such as healthcare, retail, restaurants and warehouse automation.

• Synergy between OMNIQ and Dangot already generated joint projects with OMNIQ’s AI technology and Dangot’s sophisticated automation solutions.

• OMNIQ’s consolidated turnover with Dangot reached $24.9 million in the fourth quarter of 2021, marking the $100 million run rate milestone.

• OMNIQ’s Fortune 500 customers represent a significant market opportunity for Dangot’s innovative solutions, focusing, among others, on the food and medicine, medical, retail and transport and logistics sectors.

• Under the option, OMNIQ paid the amount of $3.5 million for the additional 23% of Dangot’s shares.

• Acquisition financed by working capital and a direct loan (without equity ingredient) from a commercial bank.

SALT LAKE CITY, April 05, 2022 (GLOBE NEWSWIRE) — OMNIQ Corp. (NASDAQ: OMQS) (OMNIQ” or the “Company”), a provider of supply chain and artificial intelligence (AI)-based machine vision solutions, has acquired an additional 23% of Dangot Computers Ltd, increasing makes it a wholly-owned (100%) subsidiary, effective April 1, 2022. The Company paid $3,518,000 in consideration for the year of which $3.1M was funded through a combination of short and long-term .

Dangot is a profitable and leading player in the field of automation and frictionless equipment. Its systems have earned an excellent reputation and significant market share in the demanding Israeli market, providing innovative solutions globally for multiple vertical markets including healthcare, retail, restaurants and food automation. warehouses.

Dangot’s fiscal 2021 standalone revenue was approximately $40 million, with pretax profit of approximately $2 million.

OMNIQ recently announced some of Dangot’s achievements:

• On March 22, 2022, OMNIQ announced a purchase order to supply a smart digital pricing system to 42 branches of a dynamic supermarket chain in Israel

• On March 14, 2022, OMNIQ announced the deployment of 1,000 units of a “Smart Buy and Go” (SBG) solution for a supermarket chain; Plans to soon offer SBG to Fortune 500 clients operating in an estimated $1.0 trillion industry

• On December 3, 2021, a joint OMNIQ-Dangot project: OMNIQ receives an order of approximately $1 million for smart kiosks in the United States

Shai Lustgarten, CEO of OMNIQ, said, “Our momentum continues to grow at a breathtaking rate since the acquisition of Dangot, when we first announced the acquisition, we reported that annual sales combined have created a consolidated company of $91 million. today, I’m more than happy to say, our annualized revenues have exceeded $100 million in just nine months. Additionally, we are already doing joint projects in Israel and the United States and believe we expect to have many more soon. Dangot’s innovative product offerings align with OMNIQ’s target markets and as such will be leveraged by our strong sales team in the US market. At the same time, we can accelerate the merger of our AI products with supply chain customers served by both companies. Our enterprise customers have everything to gain from having access to these cutting-edge solutions that fill the gaps where current technology falls short. »

About OMNIQ Corp.

OMNIQ Corp. provides computerized image processing and machine vision solutions that use patented and proprietary artificial intelligence technology to provide real-time data collection, monitoring and control for supply chain management, homeland security, public safety, traffic and parking management and access control applications. The company’s technology and services help customers move people, assets and data securely across airports, warehouses, schools, national borders and many other applications and environments.

OMNIQ’s customers include government agencies and leading Fortune 500 companies across multiple industries, including manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, oil, gas and chemicals. Since 2014, annual revenue has reached over $50 million from customers in the United States and overseas.

The company currently addresses several billion-dollar markets, including the global safe cities market, which is expected to reach $29 billion by 2022, and the secure ticketless parking market, which is expected to reach $5 billion. $2 billion by 2023. For more information, visit www.omniq.com.

Information about forward-looking statements

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995. Statements Contained in This Press Release Regarding Economic Plans, Strategies, Performance and Trends, Projections of the Results of Specific Businesses or Investments, and Other Statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

This press release contains “forward-looking statements” that include information relating to future events and future financial and operating performance. The words “anticipate”, “could”, “should”, “shall”, “expect”, “estimate”, “could”, “believe”, “potential” and similar expressions and variations thereof are intended to identify prospective terms. statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be precise indications of the times at which or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time they are made and/or on the good faith belief of management at that time regarding future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed or implied by the forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements made in this press release regarding the closing of the Private Placement and the use of proceeds received under the Private Placement. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company’s products, particularly during the current health crisis, the introduction of new products, the Company’s ability to maintaining strategic business relationships with its customers, the impact of product and price competition, growth in targeted markets, the Company’s adequacy of liquidity and financial strength to support its growth, the Company’s ability to manage the credit and debt structures of suppliers, creditors and secured lenders, the Company’s ability to successfully integrate its acquisitions, and other information which may be detailed from time to time in documents filed by OMNIQ Corp . with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include, among others, statements regarding revenue growth, sales drive, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the company’s recent filings with the Securities and Exchange Commission, which are available at https://www.sec.gov. OMNIQ Corp. does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Investor contacts:

Koko Kimball
omniQ
(385) 758-9241
[email protected]

James Carbonara
R.I. Hayden
(646)-755-7412
[email protected]