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‘Internet of Things’ Company Xped to List on ASX

‘Internet of Things’ Company Xped to List on ASX
The Internet of Things (“IoT”) is a colloquial expression for technology that enables physical objects or ‘things’ to collect and exchange data with cloud platforms
Mar 01, 2016 By Simon Herrmann Tags: XPE, Internet of Things

Having invested more than $6million in its technology, Xped Limited (ASX:XPE) is entering the final stage to backdoor list on the ASX through former geothermal mining company Raya Group. The acquisition is expected to conclude in March, after which the company will list under the ticker code XPE.ASX.

Principally focused on ‘internet of things’ technology, Xped has developed its Auto Discovery Remote Control (“ADRC”) technology which allows a control unit like a smart phone or tablet to remotely control and command virtually any kind of device such as industrial equipment, retail equipment, medical devices, wearables, home appliances, toys and many others. Xped has developed a portfolio of Intellectual Property (“IP”) that focuses on enabling any electronic device to be easily added to a network such as Wi-Fi and controlled via one master app known as a Device Browser.

The Internet of Things (“IoT”) is a colloquial expression for technology that enables physical objects or ‘things’ to collect and exchange data with cloud platforms, other things and humans via connectivity with the Internet. Industry estimates for connected devices to the internet range from 20 to 100 billion with a median average of around 50 billion devices that could be connected to the Internet by 2020.

With the ADRC software supporting prototype demonstrations, Xped is now engaging prospective industrial customers and the technology is undergoing commercial trials. The company has established a Memorandum of Understanding (‘MOU’) with Tytronics, Vital Xense and Wire By Click and most recently with a NASDAQ listed chipset manufacturer. After satisfying requirements of the validation phase, Xped aims to commercialise the technology via a licensing approach in which third parties remunerate Xped for the right to integrate the ADRC technology into their products.

Principal risks surround the company’s ongoing reliance on external capital, validation requirements and competition. While Xped’s technology benefits from patent protection, its commercial value is subject to influence from alternative technology solutions and many competing technologies are being developed by large corporations.

However, the company has witnessed strong demand for its prospectus raising with firm offers exceeding $8 million being the maximum amount under the prospectus offer. The funds will assist Xped with its commercialisation strategy and progression into licensing agreements can generate near term revenue and provide a major validation signal. The company aims to generate initial revenues in late 2016 and become cash flow positive in 2017.

Its patent portfolio, and existing commercial partnerships are attractive qualities. Validation of Xped’s technology via a binding commercial agreement is the major potential value driver. Xped has developed a simple and universal solution that has the potential to disrupt the sector and through the injection of funds from the prospectus raising, Xped will undertake preliminary actions to pursuit growth opportunities. With up to 50 billion devices forecast to be connected to the internet by 2020, the company aims to tap into a significant market opportunity.

Wise-owl iniated coverage on Xped on 18 April at 4.3 cents. Read the full report for Xped Limited here.

IPO Details

Company: Raya Group Limited – to be changed to Xped Limited

ASX Code: RYG – to be changed to XPE

Shares on Offer: 320 million

Listing Price: $0.025

Market Capitalisation: $42.3 million

Listing Date: March 31st    

This article appeared first on The Australian.


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Simon Herrmann Author: Simon Herrmann Mar 01, 2016

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

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