On behalf of the Board of Ensogo Limited (Company or E88), I am...

On behalf of the Board of Ensogo Limited (Company or E88), I am pleased to advise that E88 has signed a binding share sale agreement (Agreement) to acquire Quantum Labs Pty Ltd (Quantum Labs), which owns and operates a LiDAR business (Acquisition).

LiDAR, an acronym for “Light Detection and Ranging”, is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances). These light pulses – combined with other data recorded by the system – generate precise, three-dimensional information about the shape of the target object or target area and its surface characteristics.

In parallel, the Company intends to undertake a capital raising under a prospectus, and seek a re-listing on the Australian Securities Exchange.

The E88 Consideration Shares are expected to represent approximately 62% of E88’s post-Acquisition and capital raising share capital.

Conditions precedent - completing a capital raising such that it has free cash of at least A$4,000,000 post-acquisition.

Guthrie White will be appointed as Chairman of the Board and Cameron Petricevic will be appointed as a Non-Executive Director. Mark O’Reilly will be appointed as Chief Executive Officer.

Guthrie White and Mark O'Reilly are executives of QuantumIT.
https://quantumit.com.au/about-us/

What is the link between Quantum IT and Quantum Labs ?
Guthrie White will lead both.
However, Quantum Labs was only created 6 months ago, incorporated 3rd Oct 2019.
https://opencorporates.com/companies/au/636603524

Guthrie White
https://www.theceomagazine.com/authors/contributor/guthrie-white/

The other new executive will be Cameron Petricevic, who is on the board of directors of Primary Hemp.
https://www.ausprimaryhemp.com.au/pages/board-of-directors-1

If you want to contact Guthrie White, it's probably best to do so via Quantum IT, the email address is:
[email protected]

Of course, the questions remain now for Quantum IT and Guthrie.
Why was Quantum Labs created in October 2019 ?

Where did the Quantum Labs LiBOR technology come from, who developed it, where was licensed from ?

Is Quantum Labs to be a subsidiary of Quantum IT, and if so, how will this affect Quantum Labs (and Ensogo shareholders - remember the disaster that Ensogo shareholders have had with the Ensogo subsidiaries in Asia - so are they setting this business up via similar corporate structures as Ensogo ?).

I generally view this as good news, because at least Ensogo will not go into administration, however, the Ensogo shareholders will be significantly diluted, probably to the tune of 70% or more, so we won't be left with much. Does this give the Ensogo shareholders some incentive to participate in the capital raising ? At what price will they be trying to raise over $4 million in the current Corona virus environment ? The timing is obviously not ideal.

I do hope this acquisition gets over the line, otherwise it's full on administration, with shareholders getting nothing, at least this way, shareholders will get something, and be presented with some hope that the Quantum Labs technology may prove useful to someone, and hopefully to many.

Interesting times ahead.
I vote yes for the acquisition, and will participate in the capital raising.
We would like to see a Quantum Labs presentation though, and soon.

Gw