IoT Group, an Australian startup with a focus on the Internet of Things (IoT) has entered into an agreement to list on the Australian Securities Exchange (ASX) by way of a reverse takeover of Sydney-based exploration company Ardent Resources.
As part of the forthcoming deal, Ardent is set to acquire 100 percent of IoT Group for AU$18.5 million with the company to be known as Ardent IoT.
"This listing will be the first real opportunity for Australians to invest in the IoT and wearable technology markets, and will be a great way for them to cash in on the boom of mobile devices, smart technologies, and gadgets," IoT Group CEO Simon Kantor said.
"I believe IoT [Group] is the only Australian company making actual physical IoT products for the general public aimed at providing tomorrow's technology today."
The Viper Phone Watch, IoT Group's first smartwatch device, went on sale for AU$99 in 762 Coles supermarkets across Australia in September 2015. The company said it was its goal to produce mass-market and "disruptive consumer technology devices" at an affordable price, which it suggests should be generally under AU$300.
IoT Group said it plans to release further technology such as a "selfie drone" flying camera, a GPS safety smartwatch designed for children, and a smartwatch designed for tradespeople whilst at work. The company also plans to develop technologies in the areas of smart home automation, smart clothing, and holographic display systems in the future.
Additionally, IoT Group owns IPTV platform, Intervision, which provides customers with smart TV boxes and subscription based streaming services from around the world. Intervision currently has over 2,000 subscribers.
As a result of the reverse takeover, Ardent's board will undergo a shakeup, with Tiong Chiong Ee and Lan Nguyen stepping down to be replaced by Kanter, investment banker Richard Woods, and ex-president and CEO of Virgin Entertainment Group Ian Duffell.
Aside from his stint at Virgin, Duffell was previously a managing director of HMV Group, and a marketing executive for Sony, having launched the company's original Walkman portable music player.
Ardent will wholly acquire IoT Group, and will issue 696,428,571 consideration shares in Ardent on a pre-consolidation basis to IoT Group's shareholders. IoT Group's existing option holders will exchange their options in IoT Group for options to acquire ordinary shares in Ardent on equivalent terms.
In addition to the consideration shares, Ardent will issue further shares to IoT Group's shareholders if IoT Group satisfies a minimum net profit after tax of AU$1 million in FY2016 and AU$1.5 million in FY2017.
IoT Group was registered as a company in May 2015 and raised AU$1 million in seed capital in July 2015.
The completion of the acquisition is currently scheduled for December 14, 2015.