Blockchain Holdings Ltd. (BCX:CSE) announced that it has entered into a binding letter of intent to acquire "100% of the rights and interests in a self-quarantine monitoring technology suite known collectively as "IMSafe" from WiSilica Inc."
TRACEsafe, the company noted, is an "innovative suite of patent-protected health and safety products, including a flagship identification bracelet and software solution used in a variety of applications, including to administer quarantine guidelines set out by governments."
The product is currently being used by the Hong Kong government to keep track of people arriving from overseas, and the company expects its use to expand to other countries. TRACEsafe wristbands pair with a cell phone, and using the phone's GPS, a person's location can be known at all times.
The technology was originally developed for keeping track of hospital patients, especially infants. The Bluetooth-enabled wristband makes it possible for the hospital to know where its patients are at all times. TRACEsafe is also used in elder care facilities to keep track of its residents.
"TRACEsafe has been adapted to fit the needs of the pandemic," Blockchain Holdings CEO Wayne Lloyd told Streetwise Reports. "The hospital-style wristband pairs with a person's cell phone so that the government knows if that person is maintaining quarantine at all times. The Hong Kong government is now requiring its use for all people arriving into the area, putting bands on people as they go through customs and pairing it with their phones. Then the government knows that that person is with their phone and hasn't left the self-quarantine location."
Prior to the adoption of TRACEsafe, travelers were required to turn on location services on What's App or other applications. But a person could just leave the phone behind and break quarantine.
Privacy issues are a concern when tracking people, but "the brilliance of this product is that it's disposable, and the battery is not replaceable or rechargeable," Lloyd explained. "That means after four weeks, the battery dies and you're not tracked anymore."
If a person cuts it off, the TRACEsafe wristband is tamper evident and the person could be fined HK$25,000 and jailed for six months, Lloyd stated.
"Wristbands have been in use in Hong Kong since February, and more than 10,000 have been used," Lloyd explained.
"Based on the success of the program in Hong Kong, and confirmed orders in excess of 65,000 units, TRACEsafe expects to roll out in multiple countries in the coming weeks and months," the company stated.
"The Coronavirus outbreak is widely expected to change how people shop, travel, and work for years to come and TRACEsafe could play an important part in implementing new policies," Lloyd explained.
"The acquisition of the TRACEsafe business assets further advances Blockchain Holdings' technology and data aggregation business. Following the 2019 acquisition of a strategic minority equity stake in Airbeam Wireless Technologies, a 5G semiconductor manufacturer and small cell network innovator, the transaction with WiSilica further highlights Blockchain's role as a value-added investor in disruptive technology startups," concluded Lloyd.
Under the terms of the agreement, Blockchain Holdings will pay WiSilica a total consideration of US$1,574,189: cash payments of US$100,000 and US$150,000, respectively, and 6 million common shares of Blockchain Holdings at CA$0.305 per share. Various milestones will also trigger performance bonuses to WiSilica and key personnel.
Dennis Kwan, the CTO of WiSilica, is expected to be appointed as CEO of a new subsidiary of Blockchain that will hold the TRACESafe assets, the company stated.
Read more about Blockchain Holdings here.
A video of TRACEsafe is available here.[NLINSERT]
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