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Cove Resources shares fly on tech acquisition

Cove Resources shares fly on tech acquisition

Cove Resources (ASX:CVE) shares were trading as much as 58% higher today as the company confirmed its acquisition of a tech company focused on energy sector efficiencies.

Stock in the company was last trading 25% up at A$0.015, which represents a 400% improvement since the beginning of September.

Following up a strategy announced in October to seek new complementary, value-accretive assets, Cove has executed a term sheet to acquire cloud-based energy spend management provider BidEnergy.

BidEnergy’s “software as a service” platform offers a single solution to manage a customer’s entire energy spend life cycle - from strategic sourcing, category management through to finance and accounts payable.

This business model targets the many inherent difficulties for multi-site organisations trying to manage their energy spend and has delivered more than $200 million worth of energy contracts.

BidEnergy services allow multi-site energy customers (including retail chains, banks, real estate, utilities and government) to benefit from savings of up to 15% compared to a traditional tender or standard reverse auction processes.

The company also boasts a fully-integrated ‘big data’ platform that manages all supplier bills, rapid interval data (smart meters), tariffs and contracts while end-to-end automation allows for reductions in internal management costs of up to 90%.

This business already includes more than 4,500 sites under management in Australia, New Zealand and the UK, and is targeting a total addressable market – including European and U.S. clients – comprising more than 15 million sites.

After Cove completes a consolidation of its securities on a 20:1 basis, a capital raising will seek to generate $7 million to fund business development and expansion activities in the U.S.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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BidEnergy Ltd Timeline

June 28 2017

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