LiteLink Technologies Inc. (CSE:LLT) (OTCPK:LLNKF) announced Tuesday that it has acquired Internet of Things (IoT) sensor technologies to target the massive and largely untouched waste and container management industry.
According to the acquisition agreement, the company will purchase all of the assets from a partnership of individuals called 3030 IoT, including sensor technologies, intellectual property rights, equipment, hardware, inventory, customer contracts, and prospect lists.
The asset bundle will also include an IoT device and software that has been commercialized and is operating with a large bin waste management company in British Columbia, Canada.
“We are very excited about the market-differentiating IoT sensor technology, which will allow us to provide the waste management industry with a much-needed solution,” said LiteLink Technologies CEO Ashik Karim. “We are confident that anyone that has interest or charges based on how ‘full a bin, container, or space is’ will want this technology. From grain to oil to clothing bins that require pick-ups or attention when they are full or empty, this integrated solution will solve this problem automatically without manual inspection.”
LiteLink Technologies Targets Untapped Waste Management Industry
Experts believe that the waste management industry will grow significantly in the coming years, as the global population continues to increase steadily. With more people comes more garbage and recycling, which puts additional pressure on the waste management industry and offers companies like LiteLink Technologies a massive opportunity.
Experts believe that the US waste management market will reach $80.7 billion by 2023. However, there are many problems still plaguing the industry, such as overfills, which lead to manual cleanup. Another big issue is the industry’s efficiency, or lack thereof. The current inefficiency of the industry is causing containers that are only half-full to be picked up while other containers miss pick-ups until they are overfilled. Extra pick-ups, as well as missing pick-ups, drives up fines and overhead costs. On top of that, safety has become an issue, with several containers and bins having been connected with deaths during pick-up.
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The smart waste management market is becoming a popular option and experts believe that it will begin to grow at a compound annual growth rate of 25.68% to reach $5.19 billion by 2024.
This transaction brings LiteLink Technologies one step closer to commercializing a turnkey hardware and software platform for widespread use and adoption.
Terms of the Acquisition Agreement
LiteLink Technologies paid a $50,000 cash deposit and has agreed to pay $60,000 in cash and $140,000 in common shares of the company following the completion of a subsequent financing.
The agreement also includes a maximum royalty payment of US$1.2 million, which is only payable upon revenue being derived from the commercialization of the assets. LiteLink has also agreed to pay a continued royalty of 15% of revenue for three years after closing.
Despite the exciting news, LiteLink Technologies’ share price was down 9.09% by end of day Tuesday at C$0.05. According to Morningstar, a fair value for LiteLink stock is C$0.11, meaning it is undervalued and trading at a 54% discount.
Investors who are interested in the innovative technology space will want to keep an eye on LiteLink Technologies and how the company progresses in the waste management industry in the coming months.
Featured Image: LiteLink Technologies
