Quantify Technology locks in major MOU with Greaton Group
Quantify Technology Holdings Limited (ASX:QFY) has announced a multi-faceted Memorandum of Understanding with Greaton Group which includes Greaton, Haneco Lighting and Lucesco Lighting.
The Greaton Group’s portfolio spans hotels, residential and commercial development projects, and brings new designs and architectural partnerships to the Australian property market. The Group recently secured the A$730 million development project “The Ribbon” at Darling Harbour, Sydney, as well as other multi-million-dollar construction projects.
The two parties have agreed to evaluate licensing opportunities for QFY’s platform in new verticals while at the same time developing complementary IoT products and solutions, with potential sales and distribution via Greaton Group’s existing network of over 600 partners.
In addition, the agreement makes reference to QFY potentially gaining access to Greaton Group’s volume manufacturing capabilities, both in Australia and China. This is a key factor for the small cap, which has been planning to grow its manufacturing capabilities in response to the increase in demand for its products — allowing it to simultaneously minimize its cost of production for hardware.
A synergistic partnership
There are some obvious opportunities for synergy in QFY’s latest partnership — in particular the deal offers a substantial sales opportunity to supply Greaton’s developments with its Q Device and other intelligent building products.
Greaton has secured a large urban regeneration project in the Adelaide CBD, as well as the $300 million West Franklin project, and is currently developing a $260 million residential site in Sydney suburb Epping. Its pipeline of major projects recommends it as an ideal partner for QFY to secure.
A further mutually beneficial aspect of the agreement is the stipulation towards licensing QFY’s existing technology, development expertise and IP. This makes sense since Greaton Group plan to utilise the company’s expertise to assist in the creation of next generation lighting solutions for its two lighting companies — Haneco Lighting and Lucesco Lighting.
With the MOU in place, QFY expect to receive an increase in income from either sales of its existing hardware and its Qumulus cloud solutions or from new technology development projects, plus royalties from licensing of the company’s technology.
“This is an exciting time for Quantify Technology. We are now able to demonstrate that the Company can deliver more than just products for our Intelligent Building solution. Our Qumulus cloud platform, and our engineering expertise, provide other companies tools they can harness to enter the IoT market with their own unique offerings,” QFY Managing Director Mark Lapins said.
However this remains an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.