Tech: Buddy Technologies sees some light with $700k contract
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Internet of Things (IoT) platform Buddy Technologies (ASX:BUD) has scored some additional revenue out of Europe.
The company said it’s received purchase orders for the initial stocking requirements of LIFX White, to the value of almost $700,000.
It amounts to the “single largest order for the European market that the company has ever received”, Buddy said.
The deal is for Buddy’s range of LIFX White Smart lights, part of its retail offering which give customers the ability to set up remote-control systems to control light patterns in the house.
The company acquired the LIFX business in a $US51m ($78.4m) deal last year, which was financed with an $18.1m capital raise and some additional debt.
The Europe contract follows a $3.8m LIFX purchase order at the end of March. However, Buddy shares have faced headwinds since the COVID-19 crisis commenced, falling from above 3c to below 1c.
The company is still trying to find momentum after shares reached a 2019 high of 10c, and this morning’s announcement saw the stock price tick higher by 25 per cent to 1.5c.
Earlier this month, Buddy entered into an equity-backed financing facility with New York-based small cap lender CST Investments Fund.
The agreement gives the company access to $12.5m in working capital over the next 24 months, with an initial payment of $1m followed by $500,000 per month thereafter.
As collateral for the payments, Buddy Technologies agreed to issue up to 200 million shares to CST. The agreement will pause if the shares acquired by CST increase its shareholding in the business to more than 9.99 per cent.
Turning back to the European market, Buddy said the $700,000 purchase order would provide initial stock for markets in the UK, Italy, France, Germany and Spain, and was “expected to be replenished with subsequent orders in due course”.
Shares in fintech Identitii (ASX:ID8), which provided an integrated compliance platform to financial services clients, climbed by more than 20 per cent in morning trade after a company update.
Following the arrival of new CEO John Rayment, Identitii said it had carried out a 60-day cost-reduction program which had resulted in $2m of annual savings, thereby allowing the company to extend its operational runway.
It marks a bounce off recent lows for Identitii shares, after the company rejoined the ASX boards recently following an extended trading halt and the completion of a $1.9m capital raise priced at 7c per share.