Tekcapital (TEK ) said Innovative Eyewear has made ‘significant strides’ towards its goal of mainstream adoption of smart eyewear since the launch of its wholesale business in June.
The UK intellectual property investment firm said its portfolio company Lucyd's Innovative Eyewear has grown from no resellers to 50 confirmed locations since the launch of its wholesale business to the optical industry at the Vision Expo East event at the start of June.
It said many of these resellers have already placed multiple orders in this short window of time and that it has made ‘several inroads in the brick-and-mortar optical industry.’
Innovative Eyewear has also gained feedback from several successful optical businesses to inform its product development strategy and better meet the needs of the sector, it noted.
To date, the Company has secured reseller partnerships with several notable eyewear businesses. Last month, Innovative Eyewear signed an exclusive purchase and distribution agreement with 8 Points Inc, a subsidiary of Marca Eyewear Group Inc. a leading Canadian distributor that provides high-end spectacles for optical stores and eye care professionals.
To maintain retail distribution exclusivity in Canada, the deal sets out a minimum purchase requirement of $4.6m worth of Lucyd® Lyte® e-glasses over 30 months. Monthly minimum committed purchases are expected to rise ‘incrementally’ over the term of the agreement.
Innovative Eyewear has also secured agreements with other brands. Metro Optics, a chain of eyewear stores in New York City has signed as a reseller with a large 155-unit stocking order and The EYE.QUITY eyewear chain in the Great Lakes area has had a strong initial order and a commitment to work together to bring smart eyewear to the region.
Additionally, the Company explained to investors that two of the top ten optical resellers in the US are testing Lucyd's products for potential inclusion in their stores across the country.
‘A key big box electronics retailer, and one of the largest sporting goods retailers in North America are evaluating our smart eyewear for inclusion in their online stores,’ it said.
As this wholesale business expands, Lucyd said it is working towards ‘significant additions’ to its product lineup, including a larger selection of styles to suit the full scope of eyeglass wearers. It plans to have 20 styles of Bluetooth eyewear available by the end of 2021.
Harrison Gross, CEO and cofounder of Innovative Eyewear, said "We are pleased to share news of our rapid progress since the launch of Lucyd Lyte to the optical trade this past June.
Gross said Innovative Eyerwear has built a robust network of resellers to introduce Lucyd products to consumers in a comfortable environment “in just a few short months.”
He added, “We are grateful to have the opportunity to expand our business from a direct-to-consumer operation to one that also addresses the established optical industry, and provide its customers with a smart eyewear option that is attractive, ergonomic, useful and affordable for the first time."
London-listed Tekcapital currently owns 100% of the share capital of Lucyd Ltd and around 80% of the share capital of its U.S. operating subsidiary, Innovative Eyewear, Inc.
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In April 2021, Lucyd, the smart eyewear and wearable software developer, closed a fully subscribed Regulation Crowdfund, raising $1.07m at a post-money valuation of $4.8m.
At the time, Tekcapital said the crowdfunding round was ‘beneficial’ to Lucyd, by introducing the brand to ‘thousands of new individuals’, funding Lucyd Lyte™ e-glasses and Vyrb™ app development and providing it with a large community for beta testing of its new products.
The Lucyd® Lyte™ glasses are the group’s latest range of tech-enhanced, prescription eyewear which enables its wearers to ‘seamlessly play music, take phone calls and chat with their phone's assistant while maintaining situational awareness with open-ear technology.’
The features of the e-glasses include Hi-fi Bluetooth® Audio which allows connections to all Bluetooth devices, enables rapid pairing, clear sound quality for calls, music and podcasts as well as open-ear audio enables simultaneous connectivity and situational awareness.
Tekcapital said it believes Lucyd Lyte e-glasses are positioned ‘at the intersection of the eyeglass, hearables and voice assistant markets.’ According to Fortune Business Insights, the eyewear market is projected to reach $179 billion by the end of 2026 with a CAGR of 5.7%.
According to Allied Market Research, the hearables market size is projected to reach $93.9bn by the end of 2026 with a CAGR of 17.2%. Over four billion voice assistant devices are currently in use globally with projected sales of $5.9bn by 2026 with a CAGR of 30.5%.
Tekcapital said it believes that the new Lyte line has the potential for mass market adoption ‘due to its advanced design, designer eyeglass form-factor and affordable pricing.’
Shares in Tekcapital have increased by nearly 80% since the beginning of 2021. The stock was trading 5.16% higher this morning at 26.5p immediately following the announcement.
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