SpotLite360 IOT Solutions (CSE:LITE) Inc has announced the acquisition of a 100% equity interest in Reti Capital Corp and in connection with that, a 100% equity interest in Colorado-based digital media company Back to the Digital Inc (BTTD).
Both Reti and BTTD will operate as wholly-owned subsidiaries of SpotLite360 and are expected to be accretive by the end of 2022, the logistics technologies solutions provider said.
"We are very excited to add this team and these capabilities to our strategy of driving supply chain data and proof to consumers,” president and CEO James Greenwell said in a statement. “Our software solutions provide tracing, tracking and visibility to any supply chain and consumers are the ultimate beneficiaries of this data.”
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“Consumers will have visibility into the proof of sustainability, ESG (Environmental, Social, and Governance) claims, product origins, authenticity, nutritional fact panels, and a long list of product and brand claims. Consumer engagement and data analytics is the last mile of the supply chain," he added.
BTTD, the parent of the very successful website www.ImFromDenver.com, is a nationally recognized producer of data-driven digital content that entertains, engages, interacts and increases revenues across many digital platforms, SpotLite360 noted.
ImFromDenver.com is used to distribute digital content the company produces and has driven best-in-class consumer engagement numbers. On a daily basis, the platform has an average of more than 300,000 unique visitors and frequently, over 600,000 visitors. In a recent 28-day span, the site had over 15 million views, it said.
SpotLite360 said the acquisition of BTTD will present greater opportunity to scale the supply chain digital twin of its customer base. The BTTD team will also enhance the company’s marketing effort and facilitate a new suite of consumer-facing solutions as an integral part of SpotLite360's Software-as-a-Service (SaaS) based supply chain technology solutions. With consistent revenue growth year-over-year, BTTD has built and told the story of many companies, products and brands, it added.
Reti, on the other hand, brings an exclusive global license with Encapsa Technology Ventures, Inc to the SpotLite360 team within the supply chain arena. The global license will leverage Encapsa's patented data storage technology that uniquely brings together all forms of structured or unstructured data, making them searchable and available to all members of the enterprise as well as uniting disparate data for analysis.
"I see the vision of collecting real-time data across the supply chain and presenting digital data to the consumer,” BTTD founder Jared Wigand said. “Data is the key to proof in healthcare, agriculture, and pharmaceutical and building consumer trust in any brand.”
“SpotLite360 is a pioneer in leveraging a SaaS platform, IOT, Blockchain, Sensors to collect data, analytics, transparency into a supply chain, and chain of custody, for the ecosystem of partners and the consumers of these brands. My team is delighted to be a part of this future. It's brilliant!" he added.
SpotLite360 shares issued as consideration
SpotLite360 said consideration for the acquisition of Reti consisted of 13,250,000 common shares of the company issued at C$0.08 per share. Upon the acquisition of Reti, the company immediately assumed the letter of intent between Reti and BTTD, and acquired all of the equity of BTTD under a definitive agreement.
The acquisition of BTTD consisted of 1,000,000 common shares of SpotLite360, which were issued at C$0.08 per share and US$50,000 cash. Additionally, BTTD has a twelve-month stock earn-out based on certain revenue targets being exceeded.
The consideration shares issued for the BTTD acquisition and any subsequent earn-outs are subject to a four-month and one-day hold period from issuance.
SpotLite360 is a logistics technologies solutions provider unlocking value, opportunities, and efficiencies for all participants in a supply chain. Building upon existing applications of IoT technologies, distributed ledgers, and machine learning, SpotLite360 endeavors to set new standards of transparency, integrity, and sustainability in the pharmaceutical, healthcare, and agriculture industries.
Contact the author at jon.hopkins@proactiveinvestors.com