Hexima Limited to acquire Real Thing Entertainment to transform AI capabilities

In a strategic shift poised to revolutionize its market position, Hexima Limited (ASX: HXL) has announced a significant acquisition. The company is set to acquire all issued shares of Real Thing Entertainment Pty Ltd, marking a pivotal moment in Hexima’s expansion strategy. This acquisition is expected to transform Hexima into a major player in the artificial intelligence sector, leveraging RealThing’s innovative AiSAP technology.

A Game-Changing Acquisition

Hexima Limited’s acquisition of Real Thing Entertainment Pty Ltd is not just a routine transaction but a strategic move designed to reposition the company within the tech industry. RealThing has developed AiSAP, a cutting-edge artificial intelligence platform that provides a new paradigm in user-device interaction. This technology enables users to achieve outcomes through natural language communication rather than traditional question-and-answer formats. AiSAP’s initial products, designed to assist the visually impaired, have already gained traction in the UK and US markets.

The Transaction Details

The acquisition deal involves the transfer of 789,743,000 fully paid ordinary shares and 87,215,044 options to RealThing’s shareholders. These options come with a $0.02 (2 cent) exercise price, expiring on March 5, 2026. A proposed 1 for 10 consolidation of Hexima’s shares is also part of the deal, which is subject to shareholder approval. Additionally, Hexima plans to issue up to 25 million shares (pre-Consolidation) to redeem convertible notes valued at AUD $500,000, further solidifying its acquisition strategy.

Leadership Changes and Corporate Restructuring

As part of the acquisition, Hexima will see significant changes in its board and management. Silvio Salom and Dr. Michael Georgeff are proposed for election as Non-Executive Chairman and Non-Executive Director, respectively. The transaction also includes the resignation of Mr. Justin Yap from the board, with Mr. Geoffrey Kempler continuing as Managing Director. The integration of RealThing’s operations will position Hexima as the holding entity for the new core business, which will focus solely on RealThing’s portfolio.

RealThing’s Innovative Technology

RealThing’s AiSAP platform, developed from decades of research in intelligent agents, is a leap forward in AI technology. The platform supports interactive, voice-based applications that assist users in achieving specific goals. RealThing’s flagship products, such as RealSAM Pocket and RealSAM Phone, cater to visually impaired individuals by offering features like voice navigation, text-to-speech, and access to audio content. These products have been successful in the UK and are now expanding into the US market, supported by contracts with the Library of Congress and Veterans Affairs.

Expert Analysis

Dr. Julia Roberts, a technology analyst, notes that Hexima’s acquisition of RealThing is a bold move with significant potential. According to Dr. Roberts, “This acquisition represents a strategic realignment for Hexima, aiming to tap into the burgeoning field of AI-driven accessibility tools. RealThing’s established technology and market presence provide Hexima with a valuable entry point into a high-growth sector. The integration of RealThing’s innovative platform will likely enhance Hexima’s competitive edge and market value.”

Future Prospects

Following the acquisition, Hexima will also maintain certain royalty rights from its previous collaborations, including the pezadeftide technology and insecticidal genes discovered with Corteva Agrisciences. These rights will continue to provide revenue streams while Hexima focuses on integrating RealThing’s operations and technology.

Next Steps

Hexima Limited will call a general meeting to seek shareholder approval for the transaction and related matters. The company will also prepare a detailed notice, including an independent expert’s report, to be released to the ASX. Additionally, Hexima proposes changing its name to “RealThing AI Limited” to better reflect its new focus post-acquisition.