Wooboard to launch the Sixty wellness platform worldwide, cutting its own slice of a US$50bn market
Health & Biotech
Health & Biotech
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Special Report: Wooboard’s agreement with Argentina-based Slik will see its Sixty platform marketed to global tier-1 clients.
Wellness tech platform Wooboard Technologies (ASX:WOO) has made solid progress during the quarter, as the company explores the significant potential of its new wellness platform, Sixty.
In the last quarterly update, Wooboard had detailed its planned launch of Sixty, targeting the corporate wellness sector which is estimated to be worth around US$50 billion.
The company has since been exploring ways to develop the marketing and sales of the platform, which has now attracted interest from Slik following a global search for a reseller and technology partner.
Slik is based in Argentina and targets the Latin American markets, but has ambitions to launch in the Asia Pacific region.
After months of negotiations, Wooboard and Silk have signed a reciprocal agreement (subject to due diligence), where WOO will be the exclusive reseller of Slik’s products in the APAC region, while Slik will be a reseller of Sixty in the Latin region.
Wooboard’s Sixty platform is a science-backed, micro-wellness platform built for teams and workplaces.
The platform was launched amid a rapidly growing global corporate wellness market, which has risen significantly as a result of the pandemic.
The Sixty platform provides automated oversight of an employee’s wellbeing when an employer is not able to be physically present with the employee.
It also does the check-in for employees, and provides them with suggestions of activities to improve their wellness.
A study by the Global Workplace Analytics predicts that we will see 25% to 30% of the workforce working at home multiple days per week in the years ahead.
Months of discussion with Slik have revealed strong technological synergies between the products offered by both companies.
The discussion has also identified major opportunities in integrating the Sixty platform to Slik’s product suite, as both companies pursue a slice of the multi-billion dollar global enterprise market for wellness.
Slik has over 150,000 users including global tier-1 clients such as Toyota, Starbucks, DHL, PF Changs, AXZ Ecolab, Honda, Heineken and Danone.
Its been looking for a product such as Sixty, and had previously been considering developing a similar product internally.
WOO and Slik realise there are significant advantages in working together and capitalising on each other’s comparative advantages, in one another’s core markets.
It’s envisaged that Slik will integrate the Sixty platform into its own technology suite, and sell it to its world-class enterprise clients globally.
As part of the transaction, Slik’s experienced team will assist WOO with the technological integrations.
The companies are also in this together for the long haul, signing the exclusive reseller agreement for a period of 50 years with an option to renew for an additional 50 years.
WOO will also acquire 20% of Slik for USD$800k, a deal the company says is on highly favourable terms in recognition of WOO’s strong contributions to the partnership.
The acquisition will be funded by way of a 12-month convertible note to be issued to institutional investors at a coupon of 6%, and a conversion price of $0.0035.
WOO’s share price closed at $0.001 as at 31 January, so the conversion price reflects a 250% premium to the current share price.
Management also believes the Slik agreement is the perfect deal to drive sales for Sixty in an accelerated manner, leveraging on Slik’s existing large number of users and major enterprise clients.
To derive such relationships from scratch would be a time intensive and costly exercise for WOO if it was to go it alone, management says.
Wooboard finished the quarter in a solid financial position, with cash at 31 December of $1.72 million.
This article was developed in collaboration with Wooboard Technologies, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.