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LONDON, UK / ACCESSWIRE / September 8, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for WPCS International Inc. (NASDAQ: WPCS) ("WPCS"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=WPCS. The Company announced on September 06, 2017, that it has entered into a definitive agreement with Dropcar, Inc., a privately-held provider of app-based automotive logistics and concierge services for both consumers and the automotive industry. Under terms of the agreement, WPCS will acquire Dropcar in an all-stock transaction. Post the closure of the transaction, the merged Company will operate under the Dropcar flagship, according to the announcement. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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WPCS announced that its primary goal has been to deliver an opportunity to enhance stockholder value, and expects that Dropcar is well-positioned to capitalize on the leading auto-tech and next-gen mobility and logistics services industry. Dropcar is a leading provider of a cloud and app-based logistics and vehicle support platform that reduces the costs, hassles, and inefficiencies of owning or servicing a car or fleet in urban areas, where its multi-channel business model is well-positioned for expansion into new markets and continued partnerships with large OEMs, automotive branded dealerships, shared mobility providers, fleet owners, and real estate developers.
The combined Company, according to the announcement, will be led by a highly qualified management team with experience in technological innovation and automotive-related logistics. Dropcar's Co-founder and CEO, Spencer Richardson, will assume the position of CEO of the merged entity, while Mr. Giordano will resume his position as a member of the Board of Directors. Mr. Richardson, a technology innovator, previously built FanBridge into a premier Fan Audience CRM platform with over 600 million fan relationships. On the other hand, Mr. Newman will continue to lead the Company's business development, while leveraging his 20 years of experience in the legal, real estate, and parking garage sectors.
Immediately, following the close of the transaction, the current stockholders of WPCS are expected to own about 15% of the outstanding stock of WPCS, and the stockholders of Dropcar are expected to own about 85% of the outstanding common stock of WPCS. The actual allocation of equity is subject to adjustment based on multiple factors, including the Company's net cash balance at closing. The transaction has been approved by the Boards of Directors of both companies and is expected occur in the Q4 2017. The merger is subject to various conditions, including approval by the stockholders of both the Companies. Additionally, Dropcar is required to raise at least $4 million prior to the consummation of the merger.
The Loss-Stricken Company
WPCS, a full-service low-voltage solutions provider, announced on July 21, 2017, its full-year FY17 results, for the year ended April 30, 2017, that the Company's loss from continuing operations was about $1.22 million, due to a $2.55 operating loss, interest expense of about $7,000 and income tax provision of about $3,000, which were partially offset by income from different settlements totaling about $1.19 million and other income of about $0.14 million. WPCS reported that the $2.55 million loss from operations was comprised primarily of about $1.04 million in operating income from Suisun City Operations, and which was offset by about $2.6 million of corporate overhead expenses.
Last Close Stock Review
On Thursday, September 07, 2017, the stock closed the trading session at $1.23, tumbling 8.35% from its previous closing price of $1.34. A total volume of 78.80 thousand shares have exchanged hands, which was higher than the 3-month average volume of 17.10 thousand shares. WPCS Intl.'s stock price advanced 0.82% in the previous twelve months. The stock currently has a market cap of $4.31 million.
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