HearMeOut Limited (ASX: HMO) designs and develops application software. The company offers uploading, sharing, music listening, content development, and driving support solutions. HearMeOut conducts its business in Australia.
The company has through a release said that it has entered into an IP Licence pact with an Indian privately-owned business namely AvidSys Infotech Private Ltd, under which the company will grant the exclusive rights of the HearMeOut platform (audio social media platform) to the latter company, so that it can unlock the potential of the specified platform across the Indian and Asian markets.
The expansion of the said platform will be in the emerging and the growth markets in such a manner that the company incurs the lowest possible operational risk. These growth initiatives shall be backed with strong technical support and the substantial amount of funding being done by the AvidSys Infotech. The latter company (AvidSys) will be investing a minimum of $3.50 Mn over the course of the term on various activities or invest $2 Mn on this platform so as to achieve five million active users base on the said platform. This investment will be in the form of an improvement in the application design, marketing, application services, and business operations.
This will fetch company a royalty of 5% p.a. of the net profit for each of the financial year until the agreement is in effect. The agreement shall remain in effect for a period of four years under which the AvidSys shall have the complete authority and discretion over the operations of the HMO platform across India and whole of Asia including application design, marketing, financials, application services, and business operations as per the term of the agreement. AvidSys will also have the Pre-empt rights to if the HMO wishes to grant any intellectual property rights to any third party outside of the designated territory, i.e. India and Asia. His role will also involve the change in the location of the hosting server from Amazon USA to Amazon India over the coming few weeks. The company will provide the required transitioning facilities to the AvidSys for the purpose of smooth transitioning to the Amazon India server. Any improvements or upgrades that will be affected by the AvidSys to the HMO platform in the regions of India and Asia shall be brought in by the company to the HMO platform across the world. At present this is a licensing agreement for a period of four years, however in case the company becomes insolvent, bankrupt or is being wound up, then in such case and circumstances, the ownership of the HMO platform & the associated intellectual property rights shall be transferred to the AvidSys Ltd.
Meanwhile, the share price of the company has fallen by 56.13 percent in the past six months as on 10 May 2018. HMOâs shares traded at $0.068 as on that day, with a trading suspension in effect & with the market capitalization of circa $3.25 Million.
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