LOMIKO TECHNOLOGIES TO LAUNCH SMART HOME DEVICES LTD TO MANUFACTURE, DISTRIBUTE AND SELL SPIDER CHARGER-BASED DEVICES
February 16, 2016
Lomiko Metals Inc. has signed a letter of intent with engineering partner MegaHertz Power Systems Ltd., private company, to launch a new company focused on Internet of things devices. SHD Smart Home Devices Ltd. will develop, contract manufacture, distribute and sell Spider Chargers and related devices.
“With the launch of Smart Home Devices Ltd., Lomiko has an opportunity to garner a profitable sales channel for the Spider Charger,” stated A. Paul Gill, chief executive officer. “Major companies such as Leviton, Legrand, Pass & Seymour, and others have recognized this new market and have launched similar devices.”
There are currently 130 million established households in North America and a healthy seasonally adjusted annualized rate of 1.3 million housing starts. In addition, offices, hotels and coffee shops are also potential markets for USB charging devices. If only one or two USB charging devices are installed in new homes and retrofitted into current homes undergoing renovations, there will be a healthy demand for these IOT products.
Previously, Lomiko Technologies was the exclusive licensee of three devices designed by MegaHertz Power Systems Ltd. based on an Oct. 27, 2014, news release. Now, MegaHertz Power Systems has amalgamated a number of new concept designs, technology licences, patent applications and intellectual property into Smart Home Systems in order to penetrate the smart home market for Internet of things (IOT) and seek out revenue streams. Lomiko will contribute the trademark and jointly developed Spider Charger and become a shareholder of Smart Home. In addition, Smart Home Ltd. plans to enter into negotiations to sell the Spider Charger and other related devices in North American markets with IOT distributors and builders.
Lomiko Technologies will no longer be the exclusive licensee in North America but will retain its North America licence for the Spider Charger, the original equipment manufacturer 120VAC 60W LED driver and the 90+ 60W LED driver. Further, it will have the opportunity to license new products from Smart Home Devices Ltd. that are developed.
Lomiko Metals will receive 778,890 shares of SHD Smart Home Devices Ltd. (11.478 per cent) for 16,129,743 shares of Lomiko Metals common stock. In view of the transaction, Lomiko has canceled the Kickstarter campaign started in December, 2015, and will relaunch with new rewards and perks.
The transaction is subject to the approval of the TSX Venture Exchange.