- Invigor Group (IVO) has implemented a number of new initiatives to help it navigate the challenges presented by COVID-19
- The company launched two new business arms — Drink@Home and Invigor Healthcare Solutions — to try and capitalise on current market conditions
- While three new accounts were signed in the first quarter of the year, Invigor has experienced some delay in the rollout of its solutions
- As such, several new policies have been introduced in an effort to preserve cash reserves
- Invigor Group shares are still suspended from trade, last selling for 2.5 cents apiece in October
Invigor Group (IVO) has implemented a number of new initiatives during the first quarter of 2020 to help it navigate the challenges presented by COVID-19.
Based in Sydney, the company provides a range of data insights and analytics to brands, suppliers and retailers across APAC, Europe and Australia, with a view to increasing customer acquisition and sales.
Due to the significant economic changes brought on by the pandemic, the company has established two new business segments: Drink@Home and Invigor Healthcare Solutions.
Drink@Home is designed to address the significant downturn in business felt by brick-and-mortar liquor stores by offering an end-to-end eCommerce solution. As such, store owners will be quickly able to transition their business to online trading with a fully-branded website.
Designed in consultation with Retail Drinks Australia (RDA), Drink@Home will be able to deliver more secure cash flow, steadier and more reliable levels of business, and access to additional revenues streams.
Invigor Healthcare Solutions, on the other hand, aims to leverage opportunities in the sales and marketing of COVID-19 testing kits. The company is currently in the process of forming a master agreement with Marcel Equity, which has secured distribution rights from two major Chinese companies.
One of which is Zhuhai Livzon Diagnostics, which has developed a rapid antibody test. As a sponsor, Marcel has helped the company to secure registration under the Therapeutic Goods Administration (TGA).
The other is Coyote Bioscience, a developer of rapid PCR tests that can be conducted outside a laboratory using an analyser. TGA approval for the company’s products is currently underway.
While Invigor signed three new contracts during the quarter ending March 31, 2020, complications associated with the COVID-19 pandemic have resulted in service delays.
This largely applies to the company’s relationships with the WA Economic Authority and Vantage Group, which are currently behind by several months. As a result, Invigor has been aggressively pursuing other opportunities, and is currently in discussions with two major brands and a nationwide retailer.
Taking into account these delays, Invigor has subsequently put in place several new measures to preserve its liquidity. These includes the cancellation of its Smart Farm initiative, along with the termination of its proposed acquisition of Sun Asia Group.
Corporate overheads have also been reduced with the closure of offices in Singapore and Melbourne, as well as the subletting of some office space in Sydney. In addition, Invigor’s Executive Chairman and CFO will have their pay cut by 33 per cent and 25 per cent, respectively.
Invigor Group shares are still suspended from trade, last selling for 2.5 cents apiece in October.