OpenDNA Limited (ASX: OPN), based in Australia, is a fully integrated digital marketing and customer acquisition services company. OPN offers personalised real-time, targeted marketing through its hyper personalisation and profiling Artificial Intelligence (AI) System to enhance online sales of products and services for its clients.
With a key focus on driving sales in Australia and China, OpenDNA’s RooLife online e-Commerce marketplace is actively assisting businesses to sell directly in the Chinese market based on consumer profiles and purchasing behaviours, and process payments via the WeChat and Alipay mobile payments platforms.
OpenDNA partners with Lobster Shack
On 16 September 2019, OpenDNA announced to the market that the company had established a new partnership with iconic Western Australian tourist destination, Lobster Shack for the provision of marketing and Chinese mobile payment processing to service the Chinese tourism market.
Under the partnership, OpenDNA, through its RooLife platform, plans to strategically work with Lobster Shack on the following aspects –
- Implement the RooLife China payments processing system (including WeChat & Alipay) into the Lobster Shack;
- Develop and deliver strategic initiatives to increase the number of Chinese tourists visiting the Lobster Shack;
- Deliver Chinese language messaging, marketing materials and mobile applications to optimise ordering and accelerate sales of Lobster Shack products;
- Explore additional business opportunities in cross-border transactions and sale of products into China.
The company also added that no defined terms have been set as such for the partnership and OpenDNA would receive commission on the sale of all products sold through RooLife’s mobile payment platform. Presently, OpenDNA has not been able to determine the financial impact of the partnership until such time as sales commence which may provide for clearer guidance into the future.
In addition to the partnership, OpenDNA has also agreed on a strategic placement of shares in OpenDNA to the Thompson Family, founders of the Lobster Shack restaurant and Indian Ocean Rock Lobster, the seafood processing facility in Cervantes WA exporting live lobsters and a range of seafood products to China and other markets.
As per the terms of the placement, that is scheduled to be settled by the end of September 2019, OpenDNA would be issuing around 13,157,895 new fully paid shares at an issue price of $ 0.038, raising approximately $ 500,000. The Shares issued would be on the same terms as, and rank equally with, the existing fully paid ordinary shares in the company.
The funds raised have been indicated to be directed towards expansion of the RooLife platform and services, and also for general working capital purposes.
Lobster Shack and Indian Ocean Rock Lobster founder David Thompson pleasingly commented on the recent development and added that they acknowledge the exciting growth opportunity for OpenDNA’s RooLife business and thus pleased to get an opportunity to invest in OpenDNA.
He further highlighted that; Lobster Shack serves more than 1,000 meals in a day during the peak periods with the Chinese tourists forming the largest segment of their market share.
In addition to the Lobster Shack restaurant, the group operates Deep Sea fishing, Sea Lion, Lobster Catching and Lobster Factory Processing tours as well as direct sale of seafood globally.
OpenDNA partners with Perth Airport:
The recent agreement follows another partnership with Australia’s Western Hub, Perth Airport Pty Ltd executed in early August 2019 to sell Perth Airport’s retail products online to Chinese travellers in Australia and China.
Key features of the partnership are-
- A customised version of the RooLife platform would be developed by OpenDNA, and it would be marketed under the Perth Airport brand name. It would incorporate OpenDNA’s AI technology and RooLife’s WeChat Pay and Alipay payment processing facilities.
- The company would provide its whole gamut of services to promote online sales for Perth Airport including online licencing for China, system hosting, marketing design, translation, promotion of sales and management services to drive eCommerce sales to Chinese shoppers.
Every year, around 14 million passengers travel the terminals of Perth Airport with 14 direct flights currently operating from China and Hong Kong every week. The Chinese market opportunity is quite huge and the number of Chinese tourists visiting Australia over the next 10 years is estimated to grow 11.9% annually to ~ 3.9 million visitors expected to spend ~$ 26 billion per annum by 2026–27. Also, only 8.7% of Chinese citizens held passports in 2018, providing a great scope for expansion and future growth prospects for Perth Airport and the RooLife online shopping platform.
More on company’s recent acquisitions related to the RooLife platform may be READ here.
OpenDNA has a market capitalisation of around $ 10.33 million with approximately 258.26 million shares outstanding. On 17 September 2019, the OPN stock closed the day’s trade at $ 0.039. Additionally, the OPN stock has delivered positive return yields of 14.29% Year-to-date and 17.65% in the last one month.
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