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Aussie kid-tracking tech firm skips up ASX

Christian Edwards  |  21 Sep 2017Text size  Decrease  Increase  |  
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SYDNEY - [AAP] A rich government contract and a new watch that helps anxious Aussie parents keep track of their kids has driven the share price of ASX-listed MGM Wireless (ASX: MWR) up by more than two thirds.

Thursday's share price action came a day after Adelaide-based MGM Wireless said it will launch an Aussie-first kids' smartwatch/phone/GPS tracker that parents can monitor.

Shares in the ASX-listed firm were up 24 cents, or 66.7 per cent, to 60 cents at 1300 AEST.

MGM Wireless plans to start selling its Spacetalk children's 3G GPS smartwatch in October, having tested the device in the Adelaide Hills for 18 months.

The rollout comes off the back of new arrangement to supply 800 West Australian government schools with automated emergency messaging services and analytics to measure and improve parent engagement.

MGM currently provides 1,400 schools across Australia and New Zealand with similar solutions and lays claim to inventing the first ever automated SMS system for schools in 2002.

Chief executive Mark Fortunatow said that, while MGM has no measurement of potential demand for Spacetalk, he anticipates first-year sales of between 10,000 to 20,000 watches.

"We don't know how big this market is; in reality no-one knows how big this market is," Mr Fortunatow said.

Retailing at $429, the watch keeps parents in constant--Dick Tracy style--contact via a two-way 3G and GPS tracker that also alerts whenever kids exit "safe spaces" like school or home.

Online sales are planned to begin in early October and the China-manufactured watch requires users to also purchase a SIM card and subscribe to MGM's AllMyTribe family locater app.

"Your child can make and receive calls from a set of contacts you choose, a customised SOS alert function messages guardians in an emergency and, when a child is wearing Spacetalk, parents see their child's location on your smartphone," Mr Fortunatow said.

MGM Wireless announced to the ASX on Wednesday that the device's first production run was complete, with the shipment due in Australia later this month.

 

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