Tomizone to list on ASX

Tomizone to list on ASX

Public Offer by Tomizone

PHW Consolidated Limited, the ASX listed company has agreed to acquire Tomizone Limited in an all scrip deal that will see the company relist as TOM:ASX. The public offer on the Australian market is to fund expansion capital to accelerate company growth and seek re-admission to the ASX as Tomizone Limited on or about 19 May 2015. A minimum of A$5 million and up to A$8 million will be raised.

Auckland based Tomizone provides WiFi services to the business sector globally including Australia, New Zealand, the Pacific and India. WiFi is a wireless technology that allows any WiFi enabled smart-phone or tablet to wirelessly connect to the Internet.

Venue based public WiFi – free or at a cost – offers consumers Internet access at venues such as hotels, airports, shopping centres, stadiums, cafes and libraries.

“Public WiFi is exploding in growth and venues need WiFi access to attract, retain or entertain consumers,” said Mr Steve Simms, CEO of Tomizone, “It’s a direct digital engagement that a venue can have with a consumer which creates strong incentive to monetise that engagement through analytics and content distribution.”

Analyst reports from MarketAndMarkets, Gartner and Maravedis Rethink forecast incredible growth. The global addressable WiFi market is set to be over US$26bn by 2019 according to MarketAndMarkets. Maravedis Rethink believes the global hotspot footprint will expand at 595% growth rate to 338 million hotspots between 2015 and 2018. Gartner see that online media spend will grow to $41 billion annually by the end of 2017 – more than double the growth from $19 billion in 2014.

The public offer

Under a public offer, for which a prospectus has been registered in Australia and New Zealand, there will be 25 million shares issued at an issue price of A$0.20 a share, with the over-subscription of up to 40 million shares.

The offer officially opened on Monday 27 April and is available to investors in Australia and New Zealand.

A majority of the proceeds will be used to grow the international sales and distribution strategy and continue innovation on the Lightswitch SaaS (Software-as-a-Service) WiFi platform that drives the consumer engagement.

The company already has a strong pipeline of clients and now requires a sales and a service delivery team, capable of managing growing demand.

“Over the last two years Tomizone has redeveloped it’s offering to become a flexible, state-of-the-art SaaS WiFi platform,” adds Steve, “Our proprietary Lightswitch® platform is scalable and easily interfaces with any WiFi hardware vendors, allowing for easy adoption. WiFi hotspots and the global market are expanding rapidly and Tomizone is in a leading position to participate in this growth.”

Recurring revenue from subscriptions to the Lightswitch® platform forms the baseline with additional revenue streams coming from transactional usage such as sponsored free WiFi or airtime sales for paid WiFi products.

“Many emergent revenue streams are being realised and will continue to grow. We are discovering new revenue opportunities from location-based services, analytics, profiling and advertising.”

Tomizone was established in Auckland in 2006 and the company has more than 1,500 customer businesses that are operating more than 6,000 ‘hotspots’ in some 80 countries.

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