Australian Internet of Things technology company X2M Connect (ASX:X2M) will enter the Middle East thanks to a Placement of $1.13 million.
Funds raised from the Placement, together with a $1.5 million Converting Loan Facility, will be used for X2M’s entry into the Middle East – initially the United Arab Emirates – as well as platform enhancements for renewable energy applications and ongoing operations.
In January X2M partnered with Dubai-based leading technology solutions provider, Dicode Technologies, who has been exploring opportunities to deploy X2M’s unique technology platform. Negotiations are currently underway with several customers in the Middle East.
The Placement was strongly supported by associates of Dicode and new investors with the former investing $750,000, validating X2M’s prospects in the region.
“We welcome the associates of Dicode Technologies and our new investors to the register. This is a strong endorsement of X2M’s expansion, strengthening our balance sheet and enabling us to continue to scale our business in line with our growth plans,” said X2M CEO Mohan Jesudason.
“Dicode Technologies is impressed by our unique and innovative technology platform and ability to win new enterprise and government clients in international markets. I am pleased they can further support us with this investment which will drive our next growth phase.
“The UAE is an attractive market for X2M and serves as a springboard for expanding into the wider Middle East. The region’s focus and investment in smart cities is a perfect match for our core IP, which provides advanced and integrated technology for utilities providers.
“Our unique technology platform enables automated and cost-effective gas, energy and water management and environmental monitoring. By providing two-way, integrated device communication in real time, X2M improves productivity for utilities suppliers, provides cost savings for councils, and contributes to public safety.”
The UAE Opportunity
The UAE Government has mandated piped gas be fitted to all new buildings to transition away from bottled gas. The country has a population of approximately 10 million across 2.5 million dwellings and there are approximately 500,000 existing piped gas connections in Dubai alone.
Smart gas meter usage in the UAE is new, with only approximately 7% of users. In addition, the gas market in the UAE is severely fragmented with many small independent gas companies.
The X2M platform will provide users with the ability to monitor and control gas and other meters and eliminate expensive manual reading as well as large amounts of data for artificial intelligence and analytic applications.
X2M is focusing on the UAE as its initial target in the Middle East. Once established, the Company will evaluate other countries in the region. It is anticipated that X2M will solely offer Software as a Service in the UAE.
