TrackLoop acquires IoT supply chain firm ChainTrack
October 3, 2018
Canadian analytics software company TrackLoop has acquired ChainTrack Technologies, which provides IoT-powered supply chain tracking products, including cold chain tracking, for the food and pharmaceutical industries.
The acquisition should expand and enhance the TrackLoop's existing product line. It intends to continue to develop its other businesses and assets, including its digital asset exchange product, peer-to-peer lending platform and credit risk analysis application, for the digital asset industry.
The acquisition will make TrackLoop the sole provider of analytics and IoT-powered tracking products to Volta Air Technologies, a delivery vehicle refrigeration provider. Integrated with Volta Air's electric transport refrigeration units, TrackLoop will now provide end-to-end cold chain tracking and third-party enterprise services to some of the leading delivery and logistics players, both in Canada and abroad.
Current customers and technology partners include Sustainable Produce Urban Delivery (Spud), Save-On-Foods, BC Ferries, Canadian Blood Services and BYD Motors, an electric vehicle company whose largest shareholder is Berkshire Hathaway.
ChainTrack generates revenue by delivering tracking services. It expects to sign independent cold chain tracking contracts with mid-stream logistics service providers, dealers and upfitters within food and urban delivery sector. Going forward, the company has planned expansion with main grocery chains and will also expand its customer base via distribution agreements.
The main revenue will come from delivery of its software-as-a-service (SaaS) tracking platform, which integrates with existing ERP software through an API.
"We are excited to announce the close of this acquisition and we look forward to helping ChainTrack expand their product offering as we diversify our business,” said Zayn Kalyan, CTO of TrackLoop. “In the case of the cannabis industry, many of the companies still rely on paper and faxes as a method of documentation, while the majority of ERP systems don't integrate; ChainTrack's platform solves this problem which presents significant cost savings and efficiencies to the supply chain and expands a client's existing product offering of financial analytics."
TrackLoop acquired 100% of the common shares of ChainTrack from shareholders by issuing 16.5m common shares to shareholders on a pro-rata basis. ChainTrack is now a wholly owned subsidiary of TrackLoop.
As previously disclosed, TrackLoop intends to complete a non-brokered private placement of up to five million units at a price of $0.10 per unit for gross proceeds of up to $500,000. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable at a price of $0.15 per share for a term of two years. The company may also pay finders' fees in connection with the private placement in accordance with the policies of the Canadian Securities Exchange and applicable securities legislation.
The company has also granted stock options to officers, directors, employees and consultants to purchase up to 3.3 million common shares of the company at a price of $0.07 per share, exercisable for a period of two years.
The company paid a finder's fee in the aggregate amount of 1.2 million units, with each unit comprising one common share and one common share purchase warrant exercisable at a price of $0.20 per share to a group of finders upon the closing of the transaction, which is subject to a four-month hold period.