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IOT announces double dose of good news
2 minute read
The negotiation of a major distribution agreement for its AirSelfie and ROVA products will result in an immediate start to distribution in the United Kingdom, Ireland, Belgium and the Netherlands for IOT Group (ASX:IOT).
Management also expects that this agreement will facilitate sales into other countries over the next three months.
The agreement was struck with White Castle Partners (WCP), represented by Klaas de Vos who has more than 25 years of experience in consumer products across sales, marketing and management.
Importantly, WCP has existing business relationships with IOT’s North American partners “Spring/Cities and its South American/Latin American partners, Maximum Export Import. Synergies derived from these relationships, along with the exchange of knowledge and information of markets should assist IOT in substantially increasing sales.
Looking at the WCP agreement in isolation, it will provide IOT with representation across most major markets in mainland Europe, as well as the Nordic countries and Russia, Turkey and the Middle East.
IOT’s Executive Director, Sean Neylon highlighted the fact that this agreement along with other distribution arrangements should not only lead to increased sales revenues across a broad global footprint, but it should also result in improved profit margins.
This is speculative at this stage, so investors should seek professional financial advice if considering this stock for their portfolio.
IOT raises $580,000 at premium to previous day’s closing price.
Shares soared more than 10 per cent in mid-morning trading after the company announced that it had signed an important distribution agreement and raised $580,000 in capital through the issue of new fully paid ordinary shares at a premium of approximately 10 per cent to yesterday’s closing price.
IOT announced on Wednesday that it had raised $582,000 before costs through the issue of 58.2 million ordinary shares to professional and sophisticated investors at a price of 1 cent per share, representing a premium of just over 10 per cent to the previous day’s closing price.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
The new capital will be used to fund inventory purchases of Rova and AirSelfie units that will fill existing and future orders leading into the busiest period of the year for consumer electronics.