Internet of Things Inc. (IoT Inc.), a strategic investor in growth-oriented companies with innovative IoT, artificial intelligence (AI) and blockchain solutions, has announced it has entered into a letter agreement to acquire Weather Telematics Inc. (WTX Inc.), a data science company offering real-time advanced AI-based predictive road condition weather analytics for safer, connected and autonomous transportation.
The company intends to acquire 100 percent of the issued and outstanding shares of WTX Inc. for $2.53 million on the following terms: (i) $230,000 in cash payable at closing; (ii) $300,000 in cash payable on the 6-month anniversary post closing; and (iii) $2,000,000 in IoT Inc. treasury shares priced on a five-day VWAP over the next five days, with 50 percent of the shares to be released over three years on the 12th month, 24th month and 36th month anniversaries post closing and the 50 percent balance to be released on achieving $8.2 million minimum net sales target over 36 months with pro rata releases every six months.
WTX Inc. uses an AI system, a proprietary mobile sensor network and a data fusion platform to generate its information.The company has developed a unique set of meteorological data (based on hundreds of millions of miles of road weather data) that allows it to make real-time hyper-local road condition predictions. Weather Telematics has patents pending in multiple jurisdictions for its sensor and a growing sales pipeline consisting of globally recognized automotive OEMs, electric vehicle manufacturers, telematics and logistics providers, media companies and insurance firms. In addition, IoT Inc. will look to expand WTX Inc. into China through its New Hope IoT Intl Inc. joint venture partnership.
WTX Inc. has assembled a management team led by CEO Robert Moran. Moran is an accomplished serial technology entrepreneur with several successful exits and he will continue to lead WTX Inc. Darryl Smith, chief technology officer, has co-founded four technology start-ups. Michael Keefe, chief strategy officer, has more than 20 years of senior management experience driving innovation and global market growth. Dr. Shiven Sharma, chief data scientist, has conducted extensive research in the field of AI, particularly machine learning, and has published more than a dozen research papers on the subject matter.
“We are excited to launch a new era of growth for WTX with IoT Inc.,” said Robert Moran, CEO of Weather Telematics. “Internet of Things Inc.’s vision closely aligns with our strategy to apply AI-based predictive data and IoT sensor networks to solve some of the global challenges facing the transportation, insurance and weather sectors.”
“Weather Telematics is poised for significant growth with a clear path to increased revenue and profitability. Since the signing of our global distribution agreement with WTX this past fall, we have worked alongside their team and have been extremely impressed with their continual progress,” said Michael Frank, CEO of IoT Inc. “We are looking forward to working with Weather Telematics management even more closely to accelerate and expand their market penetration and to maximize the return on investment for our shareholders.”
It is anticipated that IoT Inc. will close the acquisition of WTX Inc. by May 31. The transaction is subject to the approval of both companies’ board of directors and the TSX Venture Exchange.
