OK IoT Group Pty Ltd., also known as IOT Group Ltd., said Feb. 8 that it signed a binding term sheet to acquire a 25% interest in Australian online delivery platform Run-A Australia Pty Ltd., or Runa, for a cash and stock consideration of A$600,000.
The Australian maker of ROVA selfie drones will subscribe for 3 million fully paid ordinary shares of Runa at a deemed issue price of 20 Australian cents per Runa share and 1.5 million free-attaching performance options exercisable at 25 cents on or before Dec. 30, 2020, depending on certain performance milestones.
The consideration includes a cash component of A$250,000 and a stock component worth A$350,000.
IOT Group said the current investment will let it survey business performance in the next six to 12 months to decide whether it should raise its interest in Runa. The company also noted that it extended the closing date of its recently announced rights issue to Feb. 23 so that shareholders may participate in the Runa business.
Runa is a pick-up, purchase and delivery app that is currently being tested around Sydney and will be allowed to operate in Australia and New Zealand, with a first option for Hong Kong, Singapore, Japan and Malaysia.
