CCP Technologies (ASX: CT1) has lodged a prospectus today, 2 June, with the ASX to raise $806,000 for business development and commercialisation of its IoT technology.
CCP listed on the ASX in September 2016. It provides IoT as a services under which it supplies devices for monitoring what it calls critical control points, with an initial focus on commercial refrigeration systems. These report wirelessly to its central control system that provides alerts and other information to clients.
The move follows the company last month securing a $500,000 investment from a group of strategic investors that includes entities associated with two well-known Australian telecoms entrepreneurs: Vocus Communications founder James Spenceley and Amcom cofounder Tony Grist.
A total of 30.5 million shares at $0.017 were issued to a number of investors. Spenceley, through Spenceley Management Pty Ltd, took 12 million shares for $205,000 giving him 5.09 percent of CCP equity. He said, “The IoT space is one of the most exciting investment options in the market today – and it’s still at an incredibly early stage.
“For Tony and I, it’s about finding the right team that has the skills and ability to pursue the opportunity that IoT presents, and in CCP we believe we found a company with the talent and skills in hardware and software engineering to be able broaden their product range and application.”
Commenting on their involvement, CCP CEO, Michael White, said: “When you get this interest and validation from people who understand and appreciate CCP’s corporate strategy, then it amounts to a real vote of confidence in what the board and management have been doing.”
In a presentation on its planned capital raising CCP identified as a key market opportunity what it said was the fact that traditional systems for monitoring critical control points such as temperature, humidity, door events and energy consumption “still come at a hefty price … are often cumbersome, difficult to install and complicated to implement [lacking] the versatility to service the needs of today’s business environment.”
In contrast it claims its technology is ultra low cost (less than $15 per monitoring point per month) and easily installed. The company claims to have scored installations at more than 50 sites in Australia and the US in the first three months of selling.
CCP’s initial target market is the food processing, food service and retail sectors in the Australian and US territories. It says. “For these sectors, poor temperature management creates the single biggest risk to perishable food safety and quality.”
