IoT Group Update ASX:IOT
Good afternoon friend of IOT Group Limited
Please see attached Term Sheet - Click Here to review
APP have been mandated to raise $500,000 in a placement of 41,666,666m shares at 1.2c. The purpose of the raise is to fund orders/inventory production until IOT have secured appropriate trade finance. While this process is taking longer than expected IOT want to ensure the right terms are secured. It should be noted that it was expected trade finance which would have cashed the receivables was expected to fund current inventory requirements. The group made last minute demands that were not in the best interests of the company and the process has begun with new groups. A disappointing result but the company was not willing to be held ransom. To minimise cash burn during the ramp up phase IOT have undergone a process of capital/cost management reducing monthly burn significantly with the following measures:
60% cut in Wages/fees across the IOT Board and its Senior Executives.
Reduced Office rental by 60% ongoing
Reduced US staff burn rate by 50% ongoing
Reduced marketing spend + have convinced retailers to make the investment in marketing for the Rova/AirSelfie.
This is an opportunity to top up at a record low as IOT are on the cusp of potentially very significant sales revenue. The ROVA sales have begun over the last month with the first of the big-box orders coming through from Best buy Canada and Best buy USA. The first order to stock Best buy USA shelves is delivered today and Lynn head of marketing is in the US with Bryan Corlett seeing all of the retailers and running through marketing strategies. Production units of the Air Selfie should be ready in the next couple of weeks and this is the beginning of the real sales process for Air-Selfie which has garnered significant interest. In my opinion it will be a very hot Christmas item; it is unique.
Priority will be given to existing shareholders who have held stock.
S708 investors only
Please endeavour to bid Today as this is only a small placement.
For further information please contact Eli Ekman
Eli Ekman | Senior Client Adviser | APP Securities Pty Ltd
Level 41, 259 George St, Sydney, NSW 2000
M: +61 411 700 764 | D: +61 2 9226 0119 | E:
[email protected] | W:
www.appsecurities.com.au
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