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- BuildingIQ (BIQ) and SNAPS Holdings have signed a Letter of Strategic Intent for SNAPS to invest A$5.9 million in BuildingIQ
- SNAPS is a U.S.-based tech firm who owns and operates companies from a variety of sectors
- It believes combining its internet of things solutions with BuildingIQ’s 5i Intelligent Energy platform will be highly strategic and compatible
- Subject to shareholder approval, due diligence and the $5.9 million payment, SNAPS will own 66.67 per cent of BuildingIQ
- Additionally, the smart energy provider has announced the expression of interest from TSX-listed mCloud Technologies has been terminated
- The reasons for this haven’t been disclosed
- BuildingIQ is up a healthy 16.7 per cent and shares are trading at 0.7 cents each
BuildingIQ (BIQ) and SNAPS Holdings, a U.S.-based technology firm, have signed a Letter of Strategic Intent (LOI) for SNAPS to invest A$5.9 million in BuildingIQ.
Specifically, SNAPS will acquire a 66.67 per cent ownership position in BuildingIQ – making it the majority owner.
SNAPS is located in North Dakota owns and operates multiple companies in the telecom, healthcare, communication, industrial, software and agriculture technology industries.
It also has a significant presence in the commercial real estate markets with its core team management experience of over 130 years.
The companies also plan to enter a strategic collaboration agreement. This agreement is to combine SNAPS’ Internet of Things (IoT) solutions with BuildingIQ’s 5i technology stack.
The combined offering will include wireless connectivity and IoT solutions provided by the companies in SNAPS’ portfolio, along with BuildingIQ’s 5i technology.
The 5i Intelligent Energy platform provides leading energy management solutions which reduce energy consumption in a building, without comprising the occupant’s comfort.
SNAPS considers its soon-to-be investee’s 5i solution to be highly compatible with a broad range of its offerings.
Additionally, by utilising its operational and financial resources, SNAPS will accelerate the global expansion of this new alliance.
For the transaction to go ahead, SNAPS will pay $2 million in the form of convertible promissory notes.
The further $3.9 million will be provided in a private placement for 390,000,000 CDIs (approximately $0.010 per CDI) following the successful completion of a pilot of BuildingIQ technology by May 31 2020.
SNAPS will also be issued 178,000,000 options to acquire additional CDIs within 12 months of being issued.
mCloud Technologies agreement
BuildingIQ has confirmed the expression of interest (EoI) agreement with TSX-listed mCloud Technologies has been terminated.
This agreement was originally announced in early February 2020 and entailed mCloud providing a A$1.5 million working capital facility for BuildingIQ and an offer to acquire CDIs in BuildingIQ in exchange for stock in mCloud.
On February 18, BuildingIQ received A$500,000 but hasn’t received any funds since then.
The company is now considering legal options to terminate the transaction and the agreed $500,000 break fee.
BuildingIQ is up a healthy 16.7 per cent and shares are trading at 0.7 cents each at 3:26 pm AEDT.
