Internet of Things Inc.(CVE:ITT) saw shares soar 25% in Toronto as it closed its previously announced acquisition of Weather Telematics Inc, which, the firm says, transforms the group into a 'real-time' road and environment data collection company.
Weather Telematics offers artificial intelligence (AI) based predictive road condition weather analytics and the consideration was C$2.53mln.
Shares in ITT added 25% to stand at C$0.075.
Weather Telematics uses a proprietary mobile sensor network and a data fusion platform.
"Weather Telematics is at the forefront of AI-based and machine learning technologies for predictive road and weather analysis feeding into the growing autonomous vehicle sector," said Michael Frank, chief executive at Internet of Things.
"We have already seen the benefits of their technology in applications related to transportation, insurance and logistics.
He said Weather's recent deal with Teletrac Navman provided integration benefits for market acceptance and ease of adoption.
"Together we've identified the next level of verticals to target, which includes insurance companies, ride sharing programs for companies like Uber and Lyft, and direct solutions for drivers.
"This acquisition will add long-term diversification and value to our investment portfolio and we welcome Weather Telematics's team to become part of the IoT's family."
James Sutcliffe, president and chief operating officer, added: "With this transformative acquisition, we are positioned to build Internet of Things Inc. into a real-time road and environment data collection company.
"This technology is vital for autonomous driving platforms like Tesla and others.
"Additionally, our strategy with Weather Telematics will be to build out a new mobile app and then to roll out the full suite of WTX technologies to the marketplace."
The deal was structured as follows: C$230,000 in cash payable at closing; C$300,000 in cash payable on the six-month anniversary after closing. Also, C$2mln IoT treasury shares priced on a five-day VWAP (volume weighted average price) over the next five days.