Trackx Holdings Inc V.TKX.H

Huge Deal Out of Left Field

[khalifathecap]

Wooow. After 9 months of silence and a crashing share price this company has sold their Yard Management SAAS technology for multiple millions. Look at the chart, it's been defeated...from .35 to .03. This could give it a niiiice bounce in the upcoming days once news is digested.


TrackX will receive up to US$2.8mm (C$4.05mm) in consideration under the sale.  This is comprised of: US $1,900,000 (C$2.75mm), with US$1,600,000 (C$2.3mm) in cash paid on closing and $300,000 (C$450,000) in cash paid in 12 months, provided that 75% of the recurring revenue associated with the TrackX Yard Management business is retained and an additional US$900,000 (C$1.3mm) over nine months for engineering services to assist with the transition of the Yard Management business to FourKites. Additionally the two companies have established a strategic collaboration agreement under which TrackX will receive 30% of the first year SaaS revenue generated by FourKites on existing opportunities in TrackX’s pipeline. TrackX will also receive 15% of the first year SaaS revenue on customer opportunities that TrackX introduces FourKites into and which results in revenue to FourKites.

Read about FourKites. They're pretty damn large.

FourKites’ real-time supply chain visibility platform is the industry’s largest, with participation from more than 400 of the world’s largest shippers and their carrier and broker partners. That includes nine of the top-10 consumer packaged goods companies and 18 of the top-20 food and beverage companies in the world, yielding the industry’s richest set of real-time supply chain data and predictive ETAs. Integrating this rich data set with previously siloed yard management systems will allow facility managers to anticipate bottlenecks, accelerate gate-in and gate-out processes, shorten on-site time for drivers and optimize inventory across multiple sites - reducing dwell times and increasing operating margins to the benefit of everyone in the supply chain.


This is a great partnership and will save this company's poor balance sheet and bring them recurring revenues for the foreseeable future. Congrats to the team here on a huge deal. 

Cap

[Messi09]

Cap, Can you tell in what form will Trackx be continuing on as a business? Will they be functioning in the background, still developing products and selling them to Four Kites?

[LiquidReality]

TKX only gave up its yard management business, which was a small portion of its operations, and not profitable. They should now have a clean balance sheet, have fantastic things coming with their FourKites collaberation, and can focus on their core GAME asset management platform. They essentially just got as much cash as their market cap for selling a small part of their business, have their