LONDON: Flex Labs (AQSE: FLEX) has acquired the remaining 95% of the issued share capital of IO+ PTE Ltd for a total consideration comprising 110,000,000 new common shares of none-par value each in the company.
The consideration is equivalent to £2.75 million at the 2.5 pence per Common Share closing mid-market price on 22 May 2024.
Flex Labs holds 7,500,000 fully paid ordinary shares in the capital of IO+, which constitute 5% of the issued share capital of IO+ and, as a result of the acquisition, it now holds 100% of IO+’s share capital.
The Share Purchase Agreement (“SPA”) also contains the customary warranties, covenants, undertakings and conditions attached to a transaction of this nature. Furthermore, 50% of Consideration Shares will be subject to a lock-in agreement for six months from completion and 50% of the Consideration Shares will be subject to a lock-in agreement for three months from completion.
IO+ operates a software business engaged in the development of advanced artificial intelligence (“AI”) products with a particular focus on the real estate market. IO+ intends to replace the current human-centric, intricate, expensive paper-based, and outdated processes involved in the residential and commercial real estate market with a streamlined, fully digital, end-to-end platform based on AI agents.
IO+ offers a comprehensive platform designed to equip its residential and commercial AI-based real estate agents with the tools needed to provide services to both sellers and buyers. IO+’s platform features an integrated suite of cloud-based software tailored specifically for the real estate industry. This suite covers essential functions such as customer relationship management, marketing, and client service, enhancing its core AI-driven brokerage services.
With the global real estate market valued at approximately US$10.5 trillion in 2022 and expected to grow due to urbanization and increasing population, the application of AI can streamline operations, reduce costs, and improve customer experiences through personalized recommendations and 24/7 service. AI can analyse vast amounts of data to identify trends, optimise pricing strategies, and target potential buyers more effectively than traditional methods. This technological edge will enable the Company to adapt swiftly to market changes, ensure higher transaction success rates, and maintain a competitive advantage in a highly dynamic and lucrative industry.
Michael Edwards, Executive Chairman of Flex Labs, commented: “Artificial Intelligence is already fundamentally re-shaping our world. It will impact every human on this planet in every industry. The core value proposition of AI is that it can fundamentally transform the economics of human based capital intensive industries. The real estate market, valued at over US$10.5 trillion globally, presents a massive opportunity for this type of disruption. By harnessing the power of AI, we aim to redefine how properties are bought and sold, offering unparalleled service and accuracy that sets a new standard in the industry. Our vision is to create a seamless, intelligent real estate experience that benefits both buyers and sellers, leveraging the full potential of AI to drive growth and innovation.”
By virtue of its shareholding in IO+, the following companies, of which Michael Edwards (CEO of the Company) is a shareholder and a director, have been issued with the following number of Common Shares in Flex Labs.
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