Harvest Technology Group has forged a pivotal exclusive reseller agreement with Pyxis Controls to expand its Nodestream™ technology across the MENATISA region, targeting critical sectors like national security and energy.
- Exclusive 2.5-year reseller rights granted to Pyxis Controls in MENATISA
- Revenue sharing set at 40% Harvest / 60% Pyxis after deductions
- Performance-based equity options could inject up to A$5 million into Harvest
- Focus on national security, energy, marine, and government communications
- Exclusivity extension contingent on achieving A$500,000 gross margin
Strategic Expansion into MENATISA
Harvest Technology Group Limited (ASX, HTG) has taken a significant step in its international growth strategy by signing an exclusive reseller agreement with Pyxis Controls. This deal grants Pyxis exclusive rights to represent and commercialise Harvest’s Nodestream™ technology suite across the Middle East, North Africa, Turkey, India, and South Africa; collectively known as the MENATISA region.
The partnership leverages Pyxis’s established presence and technical expertise in these diverse and strategically important markets. Pyxis will act as Harvest’s technology integration partner, focusing on sectors where secure, low-bandwidth communication is mission-critical, including national security, energy, marine, and government communications.
Revenue Sharing and Performance Incentives
Under the agreement, Pyxis will share gross margin revenue with Harvest on a 60/40 basis after agreed deductions, incentivising both parties to maximise sales and integration projects. The exclusivity period is initially set for 2.5 years, with an extension possible if Pyxis achieves a minimum gross margin of A$500,000 for Harvest.
Notably, Pyxis is eligible for performance-based equity options in Harvest, potentially worth up to A$5 million. These options are structured over five tranches with escalating exercise prices, aligning Pyxis’s success directly with Harvest’s financial benefit. Should Pyxis’s stake exceed 10% on a fully diluted basis, it gains the right to nominate a director to Harvest’s board, underscoring the strategic depth of this alliance.
Technology and Market Synergies
Harvest’s Nodestream™ technology offers ultra-low bandwidth, encrypted video and data streaming designed for challenging environments where traditional networks falter. Pyxis’s expertise in integrating complex systems across land, sea, and air in mission-critical sectors complements this technology perfectly.
Pyxis’s CTO, Adam Joseph Fasullo, emphasised the transformative potential of this collaboration, highlighting the demand for resilient, real-time connectivity in the MENATISA region’s demanding operational theatres. This partnership aims to set new standards for secure communications in sectors underpinning national security and energy infrastructure.
Looking Ahead
Harvest’s Managing Director, Ilario Faenza, described the agreement as a catalyst for accelerated revenue growth and deeper market penetration. The collaboration with Pyxis not only opens new regional opportunities but also aligns with Harvest’s vision to establish Nodestream™ as a global standard for secure, low-bandwidth communications.
As the partnership unfolds, the market will be watching closely to see how quickly Pyxis can convert its regional expertise into tangible sales and whether the performance milestones will trigger the lucrative equity options. This deal positions Harvest well to capitalise on growing demand for advanced communication solutions in some of the world’s most challenging and strategically vital regions.
Bottom Line?
This exclusive MENATISA partnership could redefine Harvest’s growth trajectory; if performance targets are met, the next few years promise significant market impact.
Questions in the middle?
- Will Pyxis meet the A$500,000 gross margin milestone to extend exclusivity?
- How quickly will the performance equity options be exercised, and what dilution might shareholders face?
- What competitive responses might emerge in MENATISA as Harvest and Pyxis expand?