SpotLite360 IOT Solutions (CSE:LITE) said it has terminated its agreement and relationship with E3 Service Group LLC, a facilities design and environmental control company predominantly focused in the cannabis industry.
The company said it will refocus on the delivery of repeatable, high-margin, Software-as-a-Service (SaaS)-based supply chain tracing, tracking and sustainability solutions to customers in healthcare, pharmaceutical and agriculture.
SpotLite360 entered into an agreement to buy 51% of E3 in March 2022. Under that agreement, the company issued 20 million shares priced at $0.20 each and paid US$770,000 in cash as partial consideration.
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SpotLite360 said the agreement was terminated because of the capital-intensive nature of the existing contracts and the challenges of implementing E3's business into the company's core business. E3 vendors have agreed to return the consideration shares to the company for cancellation in exchange for the return of its 51% equity interest in E3. Upon the termination of the acquisition agreement and relationship with E3, the company has no equity interest in E3.
SpotLite360 was first listed in June 2021 with its core focus to deliver SaaS-based supply chain tracing, tracking, sustainability, and proof of ESG solutions to the healthcare, pharmaceutical and agriculture industries.
Contact the author at jon.hopkins@proactiveinvestors.com