Spacetalk Ltd (ASX: SPA) shares are gaining today after an announcement from the company regarding a new sales channel for its LIFE smartwatch. At the time of writing, the Spacetalk share price is trading 6.45% higher to 16.5 cents.
Let's look closer at today's announcement from the communications technology company.
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What's driving the Spacetalk share price?
The Spacetalk share price is climbing today after the company advised its new B2B2C (business to business to consumer) channel will begin operating on 1 June 2021, coinciding with the launch of the LIFE watch's fall detection feature.
The new B2B2C channel will see the watch retailing through ACH Group. ACH Group is a leading aged care organisation with accommodation options in Adelaide, Melbourne and the Fleurieu Peninsula in South Australia. It supports more than 20,000 older Australians to live well at home and in residential care and independent living units.
The watch's fall detection feature, developed in collaboration with ACH Group, is in the final stages of completion. It will use artificial intelligence to continually improve its accuracy rate, improving as more people use the devices. The new feature will be automatically enabled on all LIFE devices through a free upgrade.
LIFE's price point has also been adjusted. The device will now retail for $399, while access to the paired Spacetalk app will cost users $7.99 per month.
Due to the new price point, eligible customers may now purchase LIFE with funding from Commonwealth Home Support, Home Care, or the National Disability Insurance Scheme.
More about LIFE
Not including the up-and-coming fall detection feature, LIFE includes SOS alerts, a GPS locator, a 4G phone, and reminders that can be used for medications and appointments.
It can also give emergency responders access to a wearer's medical history and information.
Currently, LIFE is available at JB Hi-Fi Limited (ASX: JBH) stores and will soon be launched in Harvey Norman Holdings Ltd (ASX: HVN) stores.
Commentary from management
Spacetalk's CEO Mark Fortunatow said receiving ACH Group's feedback on and support of LIFE was extremely valuable, saying:
We listened, and set about incorporating ACH Group's suggestions, which included fall detection technology and re-positioning pricing to meet the eligibility requirements for Australians to access Government funding through the Commonwealth Home Support, Home Care and NDIS programs. Our commercial arrangement with ACH Group to sell the device and the accompanying Spacetalk App opens an exciting new B2B2C distribution channel for LIFE and broadens its market reach.
ACH Group's CEO Frank Weits also commented on LIFE and its B2B2C channel. He said:
ACH Group recognised that LIFE could fill a gap in the market. Together with its newly incorporated suggested improvements we believe this high quality, stylish smartphone watch will offer peace of mind to older people…
Spacetalk LIFE is a fantastic example of two industry leaders collaborating to bring new, leading-edge and world-class aged care technology to market. LIFE can increase an older person's confidence and their safety, whilst supporting independence, health living, and social connections.
Spacetalk share price snapshot
The latest news on the company's LIFE watch has given the Spacetalk share price yet another boost.
Currently, Spacetalk shares are up 50% year to date. They are also up by 83% over the last 12 months.
Spacetalk has a market capitalisation of around $25 million, with approximately 165 million shares outstanding.
