Corporate: BuildingIQ catches the eye of a Canadian competitor; shares climb 40pc
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Internet of things (IOT) energy monitoring stock BuildingIQ (ASX:BIQ) revealed today it had a suitor and it was keen to accept the proposal.
BuildingIQ said Canadian peer mCloud Technologies (which is listed on the TSX Venture Exchange) was eager to take over the company. The parties signed an expression of interest agreement with the intention of following through with a takeover.
Under the proposed deal terms, mCloud would pick up BuildingIQ for 1.58c per share, and BuildingIQ shareholders would also receive a small number of shares in mCloud. A definitive agreement is expected in April, with the deal to be finalised by June.
mCloud has also agreed to lend BuildingIQ $1.5m later this week. mCloud is considering dual listing its own shares on the ASX.
The offer came after a rough few months that saw the stock fall from over 6c last May to 1c yesterday, as it struggles with cash flows.
While it is still down over 70 per cent in eight months, it is up 40 per cent today.
IT services company DWS (ASX:DWS) reported its half-yearly results this morning. Operating revenue rose modestly from $82.3m to $83m, while normalised profit after tax climbed from $7.6m to $8.4m.
The company declared a dividend of 3c per share and reported $10.9m in cash. CEO Danny Wallis credited the result to a recent acquisition and consequential client wins in the government and defence sector.
Kangaroo Island Plantation Timbers (ASX:KPT) is taking the first steps towards rebuilding its business, which was decimated by the recent bushfires. The company reported receipt of its first insurance payment of $10m, with the balance still on its way. Kangaroo Island Plantation also said it was revising its business plan and was considering opportunities available in the short and long term.