Soil Sub Technologies (ASX:SOI) will raise up to $500,000 through a share purchase plan toward the acquisition of Western Australian three dimensional mapping technology company Pointerra.
Initial consideration is $2.5 million for the acquisition. A non binding term sheet has been signed and is subject to various approvals.
Pointerra is building a data service solution for mapping the world in three dimensions (3D) through the processing, managing and sharing of massive point cloud data sets.
Significantly, it holds a provisional patent application that would assist in first mover advantage in the space.
Other geospatial mapping companies listed on stock exchanges have been strong performers.
Most notably, Dr Rob Newman who will chair Pointera, is a non-executive director of nearmap Ltd (ASX:NEA) which he has helped take from a small start-up company, through to listing on the ASX and its current market capitalisation of $170 million.
The business revenue model is aimed at applications for the geospatial, engineering, construction, property management, insurance, government and defence industries.
A name change from Soil Sub Technologies Ltd to Pointerra Ltd will follow a capital raising that aims to raise up to $4.0 million for the acquisition by the issue of up to 200,000,000 shares at an issue price of not less than $0.02 each.
Pointerra’s cloud based service is based on compression and visualisation algorithms which index massive point cloud data sets into a unified model, for which Pointerra holds a provisional patent application.
The processed point cloud data has the capacity to be dynamically searched and visualised by anyone, anywhere. With this pedigree, the company appears well placed.
