Simavita, a Sydney, Australia-based developer of sensor technology aimed at the disposable diaper industry, has secured funding commitments in aggregate of over $3 million from professional and sophisticated investors to assist it in the commercialization of its unique platform technology AlertPLUS .
The funding is to be provided by way of Debt Notes. Repayment of the Notes is intended to be secured over the assets of the company. Funds will be paid in three tranches. The notes, subject to CDI holder approval at a Special General Meeting, are proposed to be convertible into CDIs in the company. Members of the board of directors including Michael Spooner and Gary Pace will also, subject to prior CDI holder approval at a Special General Meeting, personally each invest $50,000 in this financing. It should be noted that the third director Damien Haakman and his family are currently significant investors in the Company.
This round of funding will support the company in achieving its key revenue targets and enable it to begin reorganization objectives, and funds to be invested will focus on AlertPlus to international markets.
Simativa recently completed a successful demonstration print run of 45 kilometers of sensor material in Europe and is currently working with partner organizations to complete commercial production of diapers incorporating the Simavita AlertPLUS sensors.
The company has also completed its pivot strategy to materially reduce operating costs and to focus upon the delivery of a business model and software platform technology AlertPLUS, which the company believes meets unmet market demand and may deliver a strong and profitable business. The company is now embarking on its Next Steps strategy. Funds to be received from this financing will also be applied to working capital.
Since the adoption of the pivot strategy in 2017, the company has transitioned into a MedTech Company with the objective of achieving a low recurring cost structure, capable of delivering product to new and major markets of interest.
The company can now deliver sensors and a portfolio of applications that meet a clear demand for change in major markets. The platform technology AlertPLUS delivers cost effectiveness as well as better and timely information to address all segments of the international infant diaper and adult incontinence industry. Importantly, AlertPLUS is a platform that facilitates a suite of wellness applications using data from our sensors to provide information well beyond wetness detection. These additional applications will in due course include fall alerts, hydration management, ambient temperature and comfort control as well as many other indicators designed to improve care and securely deliver meaningful information.