Leading U.S. Buying Group Partners with Pioneering Technology

  • HPN Select represents over 200,000 affordable housing units & a network of the nation’s best community development organizations

Mississauga, ON April 10, 2018) – Pioneering Technology Corp. (TSXV: PTE; OTC: PTEFF), (“Pioneering” or the “Company”), a technology company and North America’s leader in cooking fire prevention technologies and products is pleased to announce its latest partnership with HPN Select. The partnership consists of HPN Select and Pioneering working together to promote Pioneering’s best-selling SmartBurner to HPN Select’s affordable, multi-family housing membership. SmartBurner delivers proven cooking fire prevention technology for electric coil stoves across North America.

According to the National Fire Protection Association, cooking equipment is involved in almost half (48%) of all household fires in the United States. HPN Select’s membership is focused on multi-family affordable housing, a sector that, according to statistics, is at a higher risk for cooking fires. Pioneering’s SmartBurner with its patented temperature limiting control (TLC) technology helps prevent cooking fires before they start.

HPN Select is a strategic purchasing alliance created in 2015 by 19 Housing Partnership Network (HPN) shareholders representing a collaborative of 100 of the leading affordable housing developers and property managers in the U.S. HPN Select’s mission is to provide competitively priced, high quality procurement solutions for its members in the affordable housing sector. HPN Select is also partnered with Neighborworks America, a network that includes 240 of the nation’s best community development organizations. As part of the new partnership, HPN Select will actively promote the SmartBurner through targeted marketing campaigns and during property site visits focused on risk and/or operating cost reduction.

Pioneering CEO Kevin Callahan said, “Our mission is to help protect people and property. We are delighted to be partnering with HPN Select in bringing their members our proven, best-in-class cooking fire prevention product to help better protect their properties while also delivering a return on investment.”

Separately, Pioneering has retained Trapeze Capital Corp. of Toronto, Canada to provide market-making services in accordance with TSX-V policies. Under the terms of the agreement (“Agreement”), Trapeze will receive cash compensation of $5,500 per month and will not receive any Common Shares or options of Pioneering as compensation. Trapeze does not currently own any securities of Pioneering; however, Trapeze and its clients may acquire a direct interest in the securities of Pioneering. Pioneering and Trapeze are unrelated and unaffiliated entities. The principals of Trapeze areHerb Abramson, Randall Abramson and Adam Abramson. Trapeze is a member of the Investment Industry Regulatory Organization of Canada, a participating organization of TSX and a member of TSX-V. The capital and securities required for any trade undertaken by Trapeze as principal will be provided by Trapeze. The Agreement is for an initial term of 180 days, with automatic renewals for a further 180 days unless terminated.

 

About Pioneering Technology Corp.: Pioneering Technology is an “energy smart” technology company and North America’s leader in innovative cooking fire prevention technologies and products. Our mission is simple: To help save lives and property from the number one cause of household fire – cooking fires. We do this by engineering and bringing to market energy-smart solutions that make consumer appliances safer, smarter, and more efficient. Our patented cooking-fire prevention products address the multi-billion-dollar problem of cooking fires. According to the National Fire Protection Association, stovetop cooking is the number one cause of household fire and fire injuries in North America. Pioneering’s patented temperature limiting control (TLC) technology is now installed in over 250,000 multi-residential housing units across North America without a single cooking fire being reported, delivering peace of mind and a solid return on investment for its customers. Pioneering’s proprietary cooking fire prevention solutions include Safe-T-element, SmartBurner, RangeMinder & Safe-T-sensor and are suitable for the majority of the more than 140 million stoves/ranges and over 140 million microwave ovens in use throughout North America. For more information, visit www.pioneeringtech.com.

For more information, please contact:
Pioneering Technology Corp.
Kevin Callahan, CEO
Phone: 647-945-7515
Email: kcallahan@pioneeringtech.com

For investor relations please contact:
Contact Financial Corp.
Rob Gamley
Phone: 604-689-7422
Email: rob@contactfinancial.com

This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release

What do new U.S. tariffs on washing machines mean for HPN Select members?

On Tuesday, January 23, 2018, U.S. President Donald Trump signed an executive order levying new import tariffs on washing machines, washing machine parts, and solar panels. The administration announced that for each of the first two years, it will impose a 20% tariff on the first 1.2 million imported large residential washing machines, while there will be a 50% tariff on machines above that number. This will drop to 16% and 40% respectively in the third and following years. There will also be a 50% tariff on washing machine parts.

So what does this mean for HPN Select, and their vendor partner, Whirlpool? Goldman Sachs forecasts an 8% to 20% increase in the price of a new washing machine from international suppliers such as Samsung and LG (LG announced on Wednesday that they will be raising prices on all washing machines by roughly $50).

But for customers of Whirlpool, who manufacture all washing machines in the U.S., there is likely to be minimal to no effect on pricing. HPN Select members should be wary of purchasing appliaces outside of the HPN Select contract with Whirlpool. Other partners such as HD Supply and Wilmar carry appliances made by companies such as Frigidaire, who manufacture their washing machines in Juarez, Mexico, and Electrolux, who do much of their manufacturing in Europe, and as a result may see rising prices.

The one caveat to this is if domestic manufacturers such as Whirlpool and GE source some parts for their machines overseas, there is the possibility that costs for their machines could also slightly rise, just not as dramatically as their overseas competitors. HPN Select is currently working on collecting further information from Whirlpool about any sourcing of overseas parts.

Launching New Vendor Programs to Drive Down Costs

HPN Select is excited to announce to HPN and NeighborWorks America Members and their partners new product offerings for October and product offerings coming soon.  As Members continue to provide direct feedback to the Business Development Directors, Operations team and through the Member Peer Exchange, you can expect purchasing solutions to align closely with the procurement requirements and product specifications in support of your mission.

Pest Control: Rentokil North America is a full service pest control provider with a national footprint supported by their affiliated brands. The services include routine pest control treatment, bed bug heat and chemical treatment and rodent removal. Their pricing is competitive against the industry average. A dedicated sales team provides ongoing support to Members.

Kitchen and Bathroom Kitting: HD Supply and Maintenance USA/Wilmar provides Kitting for the Kitchen and Bath program. Rather than having to order products or materials individually, parts or materials are bundled (Kitted) which gives Members access to aggressive pricing per Kit. The Kit contains most products and materials required for a Member’s kitchen and/or bathroom upgrade/rehab. Each of these suppliers may provide installation services by request of the Member.

Remote Security Services: Elite Interactive Solutions (EIS) is a full service security consulting company. Working with Members, they plan and execute against specific security needs for Remote Guarding and Remote Monitoring Services. The use of EIS may result in a faster response by law enforcement, an Increase in security effectiveness, an expense reduction and mitigation of frivolous lawsuits and employee-related issues.

HVAC and Water Heaters: Goodman and Maintenance USA/Wilmar are market-leaders providing Members with access to competitive pricing services for HVAC units, water heaters and related parts.

Goodman is a nationally known manufacturer of HVAC units for single and multifamily homes. They bring competitive pricing and quality equipment to the affordable housing industry along with a reputable brand. Goodman has partnered with existing HPN Select suppliers, Maintenance USA/Wilmar, to provide a strong distribution platform to all Members utilizing the program.

Maintenance USA/Wilmar provide access through their catalog of leading manufacturer brands in the HVAC and water heater supply chain. These brands include, but are not limited to, Goodman, Garrison, and Rheem. The HVAC product offering includes window and stand-alone units. The water heater product offering includes tank and tankless water heaters.