Integrated Media Technology Limited (NASDAQ:IMTE) (“IMTE” or the “Company”), a company engaged in the investment, development and commercialization of visual technology with a focus on glasses-free 3D display technology, announces today that its subsidiary, GOXD Technology Limited (“GOXD”), has entered into a Distribution Agreement (“Agreement”) with Ai Holdings Corporation (“AiHD”), a Japanese company listed on the First Section of the Tokyo Stock Exchange under the Symbol “3076.T”. AiHD is a holding company that manufactures and sells information industry related equipment.
GOXD recently entered into an Equity Investment Agreement (“Equity Agreement”) with AiHD as disclosed in the IMTE FORM 6-K dated August 8, 2018. Pursuant to the Equity Agreement, GOXD agreed to issue to AiHD 20% of the enlarged share capital of GOXD for an aggregate subscription price of US$4 million.
The US$4 million investment from AiHD in GOXD will enable GOXD to expand its business and diversify its product offering. In addition, AiHD has agreed to spend no less than US$1 million for marketing and customer care, call centre and other functions as required under the GOXD brand by the end of 2019 in Japan.
Today’s Distribution Agreement further strengthens the relationship between GOXD and AiHD. Pursuant to the Distribution Agreement, GOXD grants AiHD the right as exclusive partner in Japan initially through to December 31, 2019 (“Ending Date”), unless an extended term agreement is entered into prior to the Ending Date.
GOXD and AiHD (the “Parties”) further announce a commitment to collaborate on joint development opportunities specifically in the application of artificial intelligence technology into future new products. AiHD, through its alliance with IP Dream, Inc. has an advanced multi-language translation platform. Both company executives plan to meet in the coming months to discuss a range of new products. These products may include smart interactive device, smart unmanned retail shelf and shop, intelligent translation device and other new artificial intelligence services.
Dr. Herbert Ying Chiu Lee, Chairman and CEO of IMTE, commented: “We welcome the investment in GOXD and the execution of the Distribution Agreement with a strategic partner in AiHD. GOXD has been making significant progress and we see the Japanese market as a strategic one for GOXD moving forward. With AiHD’s expertise and strong strategic relationships in Japan, we are confident that the future of GOXD will further strengthen the IMTE group.”
Mr. Hideyoshi Sasaki, the Chief Executive Officer of AiHD, commented: “We are pleased to introduce GOXD’s cloud-based content conversion technology and products to Japan through this Distribution Agreement. We believe combining GOXD’s strong technology development capability and innovative products with AiHD’s strong sales channels in the surveillance camera business in Japan, provides us a completely new video image business for the IoT era and can result in a successful expansion of GOXD’s business in Japan”.
Mr. Perry Wong, Managing Director of GOXD, commented: “GOXD has completed the development of the digital photo frame with Glasses-free 3D functions and the cloud based 3D conversion platform. We expect to launch a range of new products in Q4 of this year. GOXD cooperates with big brands to distribute their copyrighted material on the picture frame cloud platform. In addition, GOXD has established current sales channels in Taiwan, Hong Kong and China. Japan is a significant market for GOXD and we are pleased to partner with AiHD as our distributor in Japan. Our next step is to continue to develop innovative new products and expand our sales channels globally.”