IOT wants to buy the maker of its AirSelfie flying cameras
IOT Group is negotiating to buy the maker of its AirSelfie selfie drones.
The flying camera seller previously announced an equity swap with AirSelfie Holdings in October but is now also after the intellectual property rights for the device.
“IOT executives wish to dominate this exciting new product category globally by owning the intellectual property in one of the most compelling flying selfie cameras in the world,” they said.
Terms of the agreement are structured in three stages, with an initial exchange of $US1 million and 100 million IOT shares to AirSelfie Holdings as early as this year.
IOT has struggled with negative cash flow in the past quarter, raising queries from the ASX.
It reported $67,000 in sales last quarter, and had $216,000 in the bank at the end of September.
Estimated cash outflows for this quarter were $950,000.
The ASX queried IOT’s latest quarterly earlier this month, though IOT were quick to defend their position, citing Christmas trade as a key turn-around point.
“The IOT board and management are regularly considering various debt and equity alternatives including trade finance and sales invoice factoring. These alternatives are incomplete as at the date of this letter,” management told investors on November 2.
“IOT management are continually in discussions with their product manufacturer concerning extended payment terms and regularly review operating costs.”
IOT shares opened down 10 per cent at 0.9c on Thursday.