Harvest Tech subscribes for notes in TRU, flags potential tie-up

Harvest Technologies’ subscription for $255,000 worth of convertible notes in TRU Recognition Holdings is a precursor to a potential partnership.

Harvest has subscribed for $255,000 in TRU’s convertible notes that are secured against its FY2026 R&D tax rebate. Pic: Getty Images.

• Harvest Technology Group subscribes for initial $255,000 worth of notes in TRU Recognition Holdings

• Move is potential precursor to a bi-lateral partnership between the two companies

• HTG’s Nodestream video streaming technology could complement TRU’s vision-based technologies

Special Report: Harvest Technology Group has subscribed for an initial $255,000 worth of convertible notes in TRU Recognition Holdings as it considers potential synergies between the respective technologies.

The 255 notes subscribed for have a face value of $1000 each, are secured against TRU’s R&D tax rebate for FY2025, mature on December 20, 2025, and pay interest at an annual rate of 33%.

Repayment will be made at the earlier of 30 days after TRU receives its tax refund or on the maturity date.

Harvest Technology Group (ASX:HTG) may subscribe for an additional $255,000 worth of notes and has the option to convert the notes into TRU shares at a price of the lesser of 18c each and 90% of the next capital raising price.

The company believes that its Nodestream technology that provides secure, low-latency video transmission over constrained networks could complement TRU’s platform of vision-based technologies by enabling customers to access real-time visual insights even in situations where bandwidth has been a limiting factor.

TRU’s technologies turn ordinary camera networks into intelligent business tools. Its standards-based platform enables enterprises to harness artificial intelligence and video recognition effectively and responsibly maximising existing infrastructure and future-proofing their Visual AI capability.

There is also potential to unlock new use cases where intelligent video and visual AI can deliver business impact without requiring significant infrastructure overhaul.

The investment represents a potential precursor to a bi-lateral partnership being explored by the two companies.

HTG chief executive officer Ilario Faenza has entered a deed of guarantee with the company agreeing to guarantee the performance of TRU’s obligations to HTG in respect of the TRU notes.

Road to profitability

The subscription in TRU notes comes as the company progresses its four-step plan to profitability.

HTG, which is in the third stage of its plan, expects to report revenue exceeding $5m and EBITDA losses of less than $1.5m in FY2026, a decided improvement from a $6.1m loss in FY2024 and an expected loss of less than $3m for FY2025.

The company expects to achieve its first full year of positive EBITDA in FY2027.

Its Nodestream secure integrated platform for real-time collaboration, communication and data exchange provides an all-in-one solution accessible from anywhere, deployable at any time.

Sold primarily to global corporate customers and government clients, it is designed to enable users to enhance video, audio and data streaming over unstable networks and ensure optimal quality-of-service even under difficult conditions.

This makes it suitable for military applications, allowing remote patrols, ships or field drones to stream encrypted video and data back to HQ.

This article was developed in collaboration with Harvest Technology Group a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Harvest Tech subscribes for notes in TRU, flags potential tie-up