Buddy Platform Limited (ASX: BUD) is into the operations of providing the platform for the Internet of things. It also offers cloud-based solutions through which businesses can access and analyze the data in real-time generated by connected devices. It has its operations both in Australia and the USA.
The company today, on 1 April 2019, issued prospectus. As mentioned in the prospectus, it will issue 1,000 new shares each at an issue price of A$0.08 (Cleansing Offer). All the new shares offered under the prospectus will rank equally with shares on issue at the date of the prospectus. The company also mentioned offering Executive Performance Shares to the key executives and finance options to the majority vendor in the prospectus.
Further, the company announced today that it has completed the acquisition of the entire issued share capital of Lifi Labs, Inc. (LIFX)
In relation to the ASX Announcement as on 18 March 2019, and the addendum to the notice of the general meeting on that date, the following update is provided.
Buddy, Luminous Wide Limited and Eastfield Lighting Co. Limited have executed a formal agreement as per the term sheet referred to in the Acquisition Announcements. Luminous has agreed to defer the payment of a portion of the cash consideration under the merger agreement, however, Eastfield has agreed to amend the agreed-form loan agreement. The agreed terms are substantially the same as in the Acquisition Announcements, however, there are following exceptions:
Firstly, repayment of funds under the new loan agreement are payable as follows:
US$2.78 million of the new loan agreement will be repaid on or before 19 April 2019, US$3.7 million of the new loan agreement will be repaid on or before 30 June 2019, and the remainder (US$3.7 million) will be repaid on or before 31 December 2019.
Secondly, Buddy paid an amount of US$750,000 as a deposit in respect to the repayment of the US$2.78 million, and in case the Unpaid AR is not repaid by 19 April 2019, the deposit will be forfeited to Eastfield, and it will not be applied towards the repayment of the new loan agreement. The deferral of the Unpaid AR amount was agreed to facilitate the completion of formal documentation for a third-party trade finance facility without delaying the completion of the acquisition.
Finally, as part of the new loan agreement, the company will issue 100,000,000 options to Luminous with an exercise price of A$0.0759 and an expiry date of five years.
The company reiterated that after the completion of the acquisition, it would continue to assess and review the terms of various debt financing facilities that may be available and will re-engage with third-party debt financiers if such terms are favourable to the company. The company will update the shareholders accordingly if it enters into any such arrangement with third party financiers.
The company confirmed the appointment of LIFX’s CTO and Product Officer, Marc Alexander to the Buddy Board of Directors.
On the price-performance front, the stock of Buddy Platform Limited was trading at $0.073, with a market capitalisation of $80.37 million (At market close on 1 April 2019). The stock has generated a negative YTD return of 23.16% and returns of -33.64%, -19.78% and 8.96% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $0.175, and the 52-week low price stands at $0.057, with an average trading volume of 1,756,348.