According to a press release, Guardforce AI has signed an agreement with Shenzhen Intelligent Guardforce Robot Co to acquire subsidiary Shenzhen Kewei Robot Technology Company Limited. This is a robotics company focused on software solutions, management platforms, sales and technical services.
Investors in GFAI stock will remember that Guardforce AI previously signed a letter of intent to acquire 12 subsidiaries of Shenzhen Intelligent Guardforce Robot Co. It also had a securities purchase agreement for seven of the company’s subsidiaries. This new agreement replaces both of those.
Details of the Deal
Guardforce AI and Shenzhen Intelligent Guardforce Robot Co are still ironing out the acquisition price in the deal. However, they’ve agreed on paying with 10% cash and 90% restricted common stock. A definitive merger agreement is expected in the coming months.
Olivia Wang, chairwoman and CEO of Guardforce AI, said the following in the news release.
“After conducting further due diligence, it became clear that acquiring Kewei itself, compared to acquiring only the Kewei sales channel subsidiaries, would add both a premier roster of business clients, as well as advanced technologies that we believe will help to accelerate our strategic expansion within the robotics industry worldwide.”
GFAI stock is seeing heavy trading today with some 3.7 million shares on the move. That’s already above the company’s daily average trading volume of about 3.6 million shares.
GFAI stock is up 10.4% as of Tuesday morning but is down 70.7% year to date.
There’s more recent stock market news traders will want to know about below!
We’ve got all of the hottest stock news investors need to know about on Tuesday! Among that is what has shares of Oracle (NYSE:ORCL) stock in the news, this morning’s pre-market stock movers, and more. You can catch up on all of these stories at the following links!
More Tuesday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.