Vancouver, British Columbia--(Newsfile Corp. - May 19, 2017) - Lomiko Metals Inc. (TSXV: LMR) (OTCQB: LMRMF) (FSE: DH8C) ("Lomiko") has received approval and the TSX Venture Exchange has accepted for filing documentation related to an agreement dated March 15, 2017, between Lomiko Metals Inc. (the "Company") and engineering partners MegaHertz Power Systems Ltd. ("Megahertz") and SHD Smart Home Devices Ltd. ("SHD") to accelerate the launch of the USB Spider Charger, whereby the Company will contribute to SHD any and all R&D, trademarks, it's e-commerce website, contacts and intellectual property (the "Lomiko Assets") created under it's previous license agreements with MegaHertz.
In consideration SHD will recognize the Lomiko Assets at a gross conditional value of $474,633 Cdn. and issue to Lomiko 659,213 common shares, at a deemed value of $0.72 per share, in lieu of cash payment for the Lomiko Assets. SHD shall assume all past, current and future obligations of Lomiko to MegaHertz under the License Agreements and the Addendum thereto, and MegaHertz agrees to accept the assumption by SHD of any and all such obligations of Lomiko to MegaHertz.
Also, under the agreement, Lomiko has issued 600,000 shares to SHD having a hold period ending September 20, 2017 to receive an additional 208,333 shares of SHD common stock at the deemed price of $0.72 per share.
SHD is a company jointly launched by Lomiko and MegaHertz February 16, 2016, focused on Internet of Things (IoT) devices. SHD will develop, contract manufacture, distribute and sell Spider Chargers and related devices. Under the existing agreements, Lomiko and MegaHertz has been working on completing safety certification for Power Converter for LED lighting systems, the USB Spider Charger devices and coordinating partnerships with manufacturers located in China, India and Canada.
"SHD has an incredible opportunity to participate in a burgeoning IoT and Smart Device market.", stated A. Paul Gill, CEO., "Major companies such as Leviton, Legrand, Pass and Seymour and others have recognized this new market and have launched similar devices."
There are currently 130 million established households in North America and a healthy seasonally adjusted annualized rate of 1.3 million housing starts. In addition, offices, hotels and coffee shops are also potential markets for USB charging devices. If only one or two USB charging devices are installed in new homes and retro-fitted into current homes undergoing renovations, there will be a healthy demand for these IOT products. Smart Home Ltd. plans to enter into negotiations to sell the Spider Charger and other related devices in North American markets with IOT distributors and builders. Lomiko will share its network of industry connections to help grow the venture and then enjoy the SHD equity multiplier without being burdened with any engineering, new product development, IP or associated marketing costs as the Spider charger and SHD suite of IoT products are rolled out.