IoT Company Secure2Go Eyes ASX Listing
Secure2Go targets enterprises, governments and end-users in the marine, automotive, occupational health and safety and resources industries.
Secure2Go Group Limited is an Australian technology company focused on enterprise software and hardware. Secure2Go eyes to list on the ASX by raising $5 million and has recently extended the bidding period until 31 January.
The Company’s primary asset is a suite of wireless connectivity products including wearables and mobile devices which can trigger alerts, locate assets and send communication to other devices. Secure2Go targets enterprises, governments and end-users in the marine, automotive, occupational health and safety and resources industries.
Secure2Go has invested ~5 million in R&D to date and has four ‘market-ready’ products which can be sold to prospective clients. Procurement of clients would be a validation of the Company’s product and generate initial revenues. Establishing commercial partnerships to fast-track the distribution of the Company’s product suite is a major catalyst and could yield interest toward the stock. As we are looking at the capital structure it is worth mentioning that members of the management are major shareholders in the Company.
However, potential investors need to consider that Secure2Go does not presently generate revenue and does not have any contracted customers or commercial partnerships in place. The Company has a limited operating history and is reliant on external capital to fund daily activities, research and development and the commercialisation of its products. Furthermore, Secure2Go does not own any patents or IP protection.
Overall Secure2Go offers speculative exposure to demand for connectivity devices. Client acquisition and validation of Secure2Go’s product suite is the primary catalyst, while material partnerships or distribution agreements would demonstrate confidence in its commercial potential. However the Company has not secured any clients to date and remains reliant on external capital. Additional risks include its limited operating history and lack of patents. Secure2Go operates in the ‘internet of things’ space which provides the Company with a significant market opportunity, however the float is lacking catalysts and appears somewhat premature.
Author: Simon Herrmann
Jan 19, 2017
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.