TVG Technologies Secures $50m Contract for SmartNet Product

Strategic Insights -

TVG Technologies Ltd. has received a letter of intent from a private customer for a long-term contract to supply its SmartNet product with added features over a five-year period. The contract is estimated to be worth $50 million. SmartNet's technology is based on Intel's XScale CPU core and features a range of advanced technologies, including GPRS cellular modems, WiFi, Bluetooth, and biometric readers.

Key Takeaways:

  • TVG Technologies received a letter of intent from a private customer for a $50 million contract to supply SmartNet with added features over five years.
  • SmartNet's technology is based on Intel's XScale CPU core and features advanced technologies such as GPRS cellular modems, WiFi, Bluetooth, and biometric readers.
  • The contract includes an option for the customer to purchase 10% of the new company spun off from SmartNet at a 10% discount before the IPO, with a minimum market cap of $300 million.
  • TVG plans to spin off SmartNet and transfer its activities to a new company.
  • TVG has filed its 2003 financial reports and is updating its 20-F SEC filings to move from the pink sheets to the bulletin board.

Statistics:

  • Contract value: $50 million
  • Contract duration: Five years
  • Minimum market cap for 10% stake purchase: $300 million
  • Number of shares outstanding: Over 200 million after conversion of debentures

Sources:

  • TVG Technologies Ltd. press release
  • SmartChip, Inc. (Avraham Cohen, Director)