Innovative education products developer, KNeoMedia Limited (ASX: KNM) secures funding from the Florida Department of Education which has approved product distribution partnership for KneoWorld. The news sent the stock price to sky-rocket by 55.556% to last trade at $0.028 on 3 April 2019.
In the announcement to Australian Securities Exchange, KNeoMedia stated that the Florida Department of Education has approved KneoWorld as a partner product federal funding for Florida’s 67 Districts which house over 2,470 elementary and middle public schools.
The company further informed that product distribution partnership is different from previous DOE engagements because funding has already been made available by the Federal government to the Florida State DOE. This demonstrates that the Florida DOE has reviewed the KneoWorld platform and verified that it meets the educational requirements set by the Federal Government which can then fund deployment into schools.
KNM’s Chief Executive Officer James Kellett commented: “KNeoMedia now has access to available funding in Florida. It is the first time the company has gained access to the US Federal Department of Education funding which flows through to the Florida DOE, and the school Districts and schools. To date, this has been its biggest barrier to securing paid Seat Licence sales and have now overcome this in Florida, the fourth largest education system in the US. The funding framework and parameters ensure that Purchase Orders for Seat Licences are directly with KNeoMedia’s US subsidiary.”
KneoWorld meets three key areas of funding approval, namely access to a well-rounded education, safe and healthy students school conditions for student learning, effective use of technology and digital literacy of all students.
Its US sales team is currently engaging Districts to lock in Seat Licence sales to a number of school Districts. Also, KNeoWorld has configured its content so it can be integrated with learning systems of the respective facilities.
Throughout the Florida Elementary School system, there are ~2 million students as well as those requiring ‘assisted learning’ included in the classes which Kneoworld has mapped to regular and alternative assessment. Typically, over 10% of students require assisted learning, in which KneoMedia specialises, however, the Kneo platform is now mapped to both regular and alternative assessment standards for Florida thus greatly broadening the deployment opportunity.
Mr Kellett added that the immediate targets for KNM’s sales team have already been identified. This significantly streamlines the sales process as the company is deploying content to an engaged and fully funded school District or learning facility that does not have funding restrictions.
Moreover, the company is still fully engaged with District 75 Department of Education in New York with respect to sales renewals. With the progress advancing well, the company expects some smaller purchase orders in other US states to be executed this week.
The market capitalisation of KNM stands at $11.78 million as at 3 April 2019. Over the past 12 months, KNM stock price declined by 78.31% including a negative price change of 35.71% over the past three months.
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