Buddy Technologies Limited (ASX: BUD), formerly Buddy Platform Limited (till 1 April 2019), works in the information technology space and aims to provide its customers with simple and affordable solutions to make their spaces smarter and provide their occupants with more information and efficiency. The three main products of the company are Buddy Cloud, which enables global access to data and storage, Buddy Ohm, helping in monitoring resources and a mobile backend service Parse on Buddy.
On 10th April 2019, the company announced that its latest acquisition Lifi Labs, Inc. (LIFX) is expanding its foothold in the US market through Best Buy stores (just over 1,000 stores) to an additional display area.
LIFX is a global leader when it comes to smart lighting solutions and sells its products in over 100 countries worldwide directly. It also sells its products through sales partnerships with leading retailers and e-commerce platforms Amazon, Google, Bunnings, Officeworks etc.
LIFX holds a premium retail position in the Smart Home section of Best Buy stores. After the expansion, the company will present two of its most popular products (the A19 light and the LIFX Z-strip) to a new audience which will be paired with new product category (other than Smart Home).
The contracts to fabricate the new retail displays at the Best Buy stores were executed on the night of 9th April 2019 and from the next month, the rollout of the category expansion will commence. This expansion inside the Best Buy indicates the strength of the relationship between LIFX and Best Buy. This is part of the LIFX’s growth strategy which includes adding additional lighting SKUs to increased retailers in order to capture more shelf space.
Recently on 1st April 2019, the company announced the completion and issue of securities in respect to the acquisition of the entire issued share capital of LIFX. It issued 337,794,623 fully paid ordinary shares in Buddy to various minority vendors. Another 89,373,216 Shares will be issued to them upon the receipt of certain documentation. A total of 4,444,444 Shares, 24,000,000 Performance Shares and 24,000,000 Performance Rights were also issued to key executives of LIFX with 100,000,000 Options to Luminous Wide Limited. The announcement regarding debt financing for this acquisition was released on 18th March 2019
Recently there has been a lot of changes that have taken place in the company’s shareholding. Some of the entities have become a substantial shareholder of the company. King Lifi Pty Ltd ATF The King LIFI Trust, had acquired 96,746,958 fully paid ordinary shares that give them the total voting rights of 5.37%. Another entity Clark Lifi Pty Ltd <the Clark Lifi A/C> had acquired 91,282,212 fully paid ordinary shares giving them the voting right of 5.07%.
The market cap of the company is currently at A$126.05 million. The company’s stock shot up by ~3%, trading at A$0.072 (As at AEST: 2:05 PM, 10th April 2019). In the last six months, the stock has delivered a negative return of 26%, and the YTD return stands at negative 22.1%. However, over the month the stock has soared by 15.63%.
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