Relay Medical (CSE: RELA) this evening announced that it is looking to strengthen its cybersecurity abilities. The company is acquiring that of Cybeats Technologies, whom is focused on internet of things and connected device security.
Cybeats has built an intengrated security platform that is designed to secure and protect connected IoT devices. The firms approach to security reportedly eliminates device downtime due to cyber attacks while enabling manufacturers to develop and maintain secure and protected devices.
The transaction will see Relay acquire the company, its intellectual property and trade secrets. Upon closing, the firm will become a wholly owned subsidiary of Relay, who’s platform will be used to provide clients visibility into security gaps and software supply chain through continuous monitoring.
Under the terms of the share exchange agreement, the firm is to pay a total of $7.2 million for the cybersecurity firm. Consideration is to consist of $500,000 in cash as well as 9.3 million common shares of the company at a price of $0.61 per share. The remaining $1.0 million will be paid out 120 days after closing in the form of cash or shares at Relay’s election.
A milestone clause is also in effect for up to $6.7 million in additional consideration, to be issued on the 18, 30 and 42 month anniversaries of the closing of the transaction, with payouts to be based on revenue targets. All shares issued are subject to escrow conditions over a minimum 24 month period.
“While consumers, patients, manufacturers, companies and the world at large rapidly adopt and recognize the benefits of connected solutions, the potential consequences of data breaches and cybersecurity failures become increasingly more catastrophic. The value in bridging this gap is well illustrated by the flurry of activity in the global cybersecurity industry and we have experienced the power of the Cybeats solution firsthand.”W. Clark Kent, President of Relay Medical Corp
The tech is now in the process of being integrated into the firms sales and business development activities, as well as into the firms ongoing and prospective deployments o the Fionet Covid-19 pandemic testing platform.
Relay Medical last traded at $0.74 on the CSE.
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