$15 Billion New Hope Group to Invest $2 Million and Will Own 49% of the Joint Venture
Internet of Things Inc. (TSX VENTURE: ITT) (“IoT Inc.” or the “Company“)
an IoT software and solutions provider, announced today that it has
signed a Letter of Intent to form a joint venture partnership with New
Hope Data Technology Co., Ltd. a New Hope Group (collectively “New Hope“)
affiliated and invested company. New Hope is one of China’s largest
privately-owned enterprises and in the Top 500 Enterprises for 14
consecutive years. With more than 600 subsidiaries and nearly 70,000
employees and annual revenues of nearly 80 Billion Yuan or $15.5
Billion, New Hope is involved in a wide range of sectors, from
agriculture and real estate to infrastructure, chemical engineering,
finance and insurance.
The partnership will position IoT Inc. to sell Internet of Things (“IoT”)
solutions and services to New Hope’s network of factories and
businesses, in addition to other customers across mainland China. New
Hope aims to use Industrial IoT technologies to improve the operational
efficiency and transparency of New Hope owned factories as well as other
manufacturing facilities in China.
“This is a great opportunity
to transform and modernize New Hope’s expansive network of more than 600
businesses across China with measurable and effective IoT solutions,”
said IoT Inc. CEO Michael Frank. “We are now on our way to implementing
IoT Inc.’s strategy to enter the vast and profitable marketplace across
China, which needs industrial IoT solutions.”
Chinese industries
are rapidly modernizing to remain competitive globally. Broad adoption
of IoT technologies to improve industrial efficiency could produce
cumulative growth for China’s GDP of US$1.8 Trillion by 2030, analysts
from Accenture recently reported.
New Hope will hold a 49%
interest in the new joint venture and will invest initially $2 Million
as an operating and working capital loan while IoT Inc. will hold a 51%
interest. Initially, upon signing the definitive joint venture
agreements, New Hope will also invest $300,000 by way of a convertible
debenture into IoT Inc. for general corporate purposes.
As
consideration for New Hope entering into a joint venture partnership and
providing priority for all IoT products and services to be provided by
the joint venture for its more than 600 group companies, IoT Inc. will
issue 28 million common shares to New Hope. These shares will be subject
to performance milestones based upon the joint venture generating $3.5
million in aggregate net income over the first three years with annual
releases from escrow as milestones are achieved. Revenues over the
three-year term are expected to be in the $20 to $30 million range.
This
recurring annual revenue model in partnership with the New Hope network
of factories and businesses is expected to provide IoT Inc. with
ongoing revenue and a profitable income stream.
In addition, the
joint venture plans to negotiate strategic distribution partnerships
with various leading IoT technology companies around the world. The
joint venture will source their partners’ solutions and deploy their
technologies into New Hope’s network of companies as well as other
companies across China. The joint venture will also plan to negotiate
options to purchase equity in some of the solution providers from which
it secures distribution rights.
IoT Inc. announced its new
strategy to focus on developing partnerships to allow for market
penetration in China in early February. There is significant market
demand for IoT solutions in a wide range of areas, from factory
automation and plant floor control systems to security and surveillance,
process control, inventory management, employee safety and more.
New Hope and IoT Inc. plan to sign definitive joint venture agreements within the next 30-60 days.
About Internet of Things Inc. (TSX VENTURE: ITT)
Internet of Things Inc. (www.iotintl.com)
is an Internet of Things (IoT) software and solutions provider. The
company acquires and implements strategic and disruptive technology
solutions targeting the industrial IoT markets, including manufacturing,
energy management, agriculture and transportation. ITT has its
headquarters in Toronto, Canada.
About New Hope Group
New Hope Group (en.newhopegroup.com)
was founded in 1982. New Hope Group now has more than 600 subsidiaries
in 30 countries, with nearly 70,000 employees and annual revenues of
nearly 80 Billion Yuan or CAD $15.5 Billion. It is involved in a wide
range of sectors, from agriculture and real estate to infrastructure,
chemical engineering, finance, insurance and more. It has a AAA credit
rating from China Chengxin International Credit Rating Co. Ltd. (CCXI).
New
Hope Group includes New Hope Data Technology Co., Ltd, a Shanghai-based
company focused on data acquisition, monitoring, analytics, knowledge
transfer through the implementation of cutting-edge IoT technologies as
well as professional consulting and data analytics.
Follow Internet of Things On:
Facebook: https://www.facebook.com/InternetofThingsInc/
Twitter: https://twitter.com/iotintl
LinkedIn: https://www.linkedin.com/company/internet-of-things-inc-
NEITHER
THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Contact Information
-
For further information, contact:
Internet of Things Inc.
Michael Frank
President & CEO
Tel: (416) 677-9277
Email: [email protected]
To learn more, visit: www.iotintl.comNew Hope
Naomi Chen
Executive Vice-President Industry, Technology & Investments
New Hope Chemical Industry Investment Co., Ltd.
Tel: +86 18081160220
Email: [email protected]
To learn more, visit: www.newhope-data.com
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