Infinity, a boutique product development business, has provided support on the design, engineering and production of a number of the company's initiatives.
This includes the Australia Post Parcel Lockers, Coles Click and Collect Lockers and Singapore Post Parcel Lockers.
It is also assisting with in the local customisation of TZ's new SwingHandle offering.
"Over the last few years, we have seen the value of having a supporting capability like Product Development Technologies, Inc. to assist on development initiatives," executive chairman Mark Bouris said.
"The sale of PDT was opportune but signalled a refocusing of our efforts on the growth and development of the TZI business, particularly in this part of the world.
TZ had in June sold PDT for US$5.04 million.
"As our regional APAC business expands, we are establishing important partnerships with a number of major strategic customers that are helping us to refine our offerings and underpin a leading position in our chosen markets," Bouris added.
"The acquisition of the Infinity Design Development business allows us to have a local development capability we can leverage, which is close to our core customers and can help us drive new product development that can deliver business growth."
The cash component of the acquisition by TZ's wholly-owned subsidiary Infinity Design is payable in 2 components of $150,000, with the first $150,000 paid at settlement and the second $150,000 instalment payable on 1 October 2013.
TZ will also issue 1,719,690 new shares priced at $0.1163 each today to satisfy the $200,000 share component.
The new shares are subject to a voluntary escrow arrangement expiring on 30 November 2013.
In addition, the company has agreed with QVT Fund LP and Quintessence Fund LP that the conversion price per ordinary share applying to all the outstanding convertible notes issued by the Company to the QVT Funds will not be affected as a result of the issue.
The conversion price of $0.42 per share for the 4,275 Series IIIB notes and the 1,799 Series IV notes along with the $0.35 per share price for the 12,000 Series I notes and 1,714 Series III notes will remain unaffected.
TZ had this quarter raised $1.45 million through a placement to institutional and sophisticated investors to support initiatives such as the A.D.A.M. Parcel Locker Network and support cash flow funding of the major Parcel Locker supply contract with Singapore Post.
Additional orders have been placed in accordance to Phase 2 roll-out requirements of the Singapore Post contract and deployment of lockers will start this month and continue progressively as further purchase orders are anticipated.
Meanwhile, Phase 2 of the A.D.A.M. Parcel Locker Network is now underway, which will see broader deployment with established partners and new property partners such as Secure Parking.
Sales grew strongly with cash receipts of about $600,000 for the June 2013 quarter, up 40% against the same period the previous year. Unaudited sales for the year are around $3 million.
A strong backlog of purchase orders of around $660,000 will likely ship and be booked as revenue in the first quarter of the financial year ending 30 June 2014.
This consists of several large orders received in May and June that are pushing the company's current outsourced manufacturing supply chain to its limits.
TZ noted that with its current sales pipeline growth, it will transition the majority of its sourcing and contract manufacturing to Asia in the current quarter.
The sales increase is driven by growth in its Packaged Asset Delivery (PAD) business across the corporate mail sector in the U.S. and the progressive roll-out of Parcel Locker Banks in Singapore and Australia.
PAD represents about 70% of the company's overall business.
TZ had $4.1 million in cash as of 30 June 2013.
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