MGM — which boasts how school-parent communications moved into a new era when it invented the world’s first SMS based automated communication solution for schools in 2002 — raised $290 million from the share issue, and will put the funds to work for launch-related activities for Spacetalk, its new wearable for children and an all-in-one 3G watch, tracker and phone device.
MGM (ASX:MWR) — first listed on the ASX in 2004 — says the share offer was a “reward scheme” allowing shareholders to increase their investment in the company at a discounted price, prior to the launch of Spacetalk, which it expects to generate significant growth in revenue.
MGM Wireless co-founder, chairman and chief executive Mark Fortunatow — who previously founded Linx Computer Systems, Timekeeping Australia and Netline Technologies — says MGM is a company with about 10 million shares and an enterprise value of less than $4 million, but an EBITDA of more than $0.7 million from its existing business.
“Over the last three years we’ve used our cash flow to fully fund the enormous undertaking of developing and manufacturing ‘Spacetalk’, an innovative new children’s wearable which will be launched very soon. We’d like to thank all the shareholders who have supported our move into hardware and we look forward to delivering them returns.”
According to MGM, Spacetalk is the first Australian all-in-one 3G watch, GPS tracker and phone device and the first hardware product of a suite of Internet of Things (IoT) devices it plans to release.
And it says Spacetalk — developed by its AllMyTribe division — allows parents to stay in constant communication with children and doesn’t require connection to a phone and is designed to be used with the AllMyTribe family locator, child safety app and server platform.
The company touts the fact that the new device has been specifically designed to operate in Australia on Telstra’s NextG 3G mobile network and MGM claims it supports two critical mobile frequency bands that will ensure “Australia wide reception, high call quality, GPS tracking and overall performance when compared to competitor products”.
Headquartered in South Australia, MGM now claims in excess of 1350 client schools across New Zealand, Australia and America, listing its products as including student absence notifications ‘messageyou’, absence analytics software ‘Watchlists’, school news MGM Wireless products including student absence notifications ‘messageyou’, absence analytics software ‘Watchlists’, school news and messaging app ‘School Star’, a content management and messaging platform for mobile school communication called Outreach, and student attendance management solution ‘RollMarker’.