Artificial Life (ALIF), today announced the launch of a new investment entity and its first two investments.
The company has launched Artificial Life Investments Ltd., a new, wholly owned Cayman Islands subsidiary that will serve as a dedicated investment vehicle of the Artificial Life group.
In late December 2010, Artificial Life Investments Ltd. already made its first two investments, acquiring equity stakes of approximately 19% and 16%, respectively, in ARE Augmented Reality Europe GmbH ("ARE"), a Berlin-based technology start-up, and M-Health Middle East Ltd. ("M-Health"), a Cayman Islands joint venture that is expected to establish its headquarters in Dubai and begin operations in early 2011.
ARE is engaged in the global purchase, license and sale of license rights and patents to special augmented reality technology for mobile applications. Artificial Life Investments Ltd. acquired its equity interest in ARE for approximately $695,000 USD.
M-Health is a newly formed joint venture between Artificial Life and two of its long-term clients and business partners, each with substantial experience and know how relating to doing business in the Middle East. The venture will focus on mobile telemedicine technology sales and distribution in the Middle East. The parties anticipate that M-Health will serve as Artificial Life's distributor and sales agent in the Middle East in the telemedicine field, including actively selling and supporting Artificial Life's Mobil Diab® technology and its mobile diabetes monitoring app GluCoMo™. Artificial Life Investments Ltd. purchased its investment in M-Health by contributing accounts receivable in the aggregate amount of approximately $9.6 million USD. Two other wholly-owned subsidiaries of Artificial Life, Inc. simultaneously acquired, in the aggregate, approximately 3.9% of the equity of M-Health in exchange for accounts receivable worth approximately $2.3 million USD.
Artificial Life Investments Ltd. intends to make additional investments in 2011, acquiring equity stakes in companies that the Artificial Life group considers to be a valuable extension of its core business. The investment focus will be on certain mobile technologies such as augmented reality and optical recognition technologies, telemedicine, social networking and general business apps for mobile devices based on iPhone/iPad and Android operating systems.
Artificial Life Investments Ltd.'s flexible investment strategy, in which equity investments are preferably wholly or partially acquired in exchange for non-cash assets, is designed to take advantage of the current demand for Artificial Life's proprietary technologies. These non-cash assets may include non-exclusive technology licenses, accounts receivable, or stock of Artificial Life, Inc
"The launch of our new investment entity and the completion of its first investments are major milestones in our expansion strategy for 2011 and the coming years. Artificial Life has experienced rapid organic growth over the past couple of years. The Company has now reached a size and maturity where the logical next step is to engage more in M&A activities and to expand further by making selective equity investments in promising start-ups and joint ventures. This is possible in part because of the high demand for our technology, which allows us, for example, to leverage licensing rights in our proprietary technologies for equity in new and promising start-ups or joint ventures. Our new equity investments will give us the opportunity to grow in terms of both increased revenue volumes and new geographical markets," said Eberhard Schoneburg, CEO of Artificial Life, Inc.
Positive news that they are focussing on augmented reality technology. This will be the real deal in some years.