Codeifai (ASX:CDE) has entered into a binding Share Purchase Agreement (SPA) with the sole shareholder and founder of Trust Codes Global, Paul Ryan, to acquire the firm that owns and operates the company's main competitor in QR code traceability, according to a Wednesday filing with the Australian bourse.

Under the deal, Codeifai will issue 50 million shares at a deemed price of AU$0.01, subject to shareholder approval, and pay AU$150,000 in cash following completion of a capital raise, the filing said.

The acquisition is conditional on shareholder and regulatory approval, and the completion of due diligence and funding, the filing added.

Either party may terminate the SPA if conditions are not met by Sept. 16, the company said.

Following completion, Ryan will join Codeifai's senior management team, the company added.