LiteLink Technologies Inc (CSE:LLT) (OTCMKTS:LLNKF) is getting into the smart waste management business as it revealed it had struck a deal to buy Internet of Things (IoT) sensor technologies, which are used in the sector.
The group will buy all the assets from a partnership called 3030 IoT, including sensor technologies, intellectual property (IP) rights, equipment, customer contracts and prospect lists. The bundle also includes software which has already been commercialized, operating with a large bin waste management company in British Columbia.
Using the sensors, parties know the fill-level of containers and therefore, can predict pick-up and processing costs.
"We are very excited about the market-differentiating IoT sensor technology, which will allow us to provide the waste management industry with a much-needed solution," said LiteLink CEO Ashik Karim.
"We are confident that anyone that has interest or charges based on how 'full a bin, container, or space is' will want this technology. From grain to oil to clothing bins that require pick-ups or attention when they are full or empty, this integrated solution will solve this problem automatically without manual inspection."
The US waste management market is expected to grow steadily to US$80.7 billion by 2023, yet the industry is still plagued by factors leading to fines and overhead costs.
Meanwhile, the smart waste management market is gaining traction and is expected to grow at a compound annual growth rate of 25.68% to reach US$5.19 billion by 2024.
A step closer
"With this transaction, LiteLink is one step closer to commercializing a turnkey hardware and software platform for widespread use and adoption," the group said in the statement.
LiteLink has paid a US$50,000 cash deposit and will pay US$60,000 in cash and US$140,000 in LiteLink shares upon completing a subsequent financing.
There is also a maximum royalty payment of US$1.2 million, which is only payable upon revenue being derived from the commercialization of the assets.
LiteLink has also agreed to pay a continued royalty of 15% of revenue for three years after closing.
Shares slipped 9% to C$0.050 in Canada.
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