DropCar stock (NASDAQ:DCAR) is on the up and up as the New York-based company announced that it will be selling one of its segments.
The last mile logistics provider said that it has reached a definitive stock purchase agreement to sell WPCS International – Suisin City, one of its subsidiaries. The buyer in this matter are some members of the current Suisin management team.
The move will be an all-cash transaction that is slated to be completed either on or before Dec. 31, 2018 as long as every condition in the deal is reached to the utmost satisfaction from both DropCar and Suisin. The agreement will bring the company roughly $3.2 million in on-dilutive cash to its balance sheet, according to DropCar CEO Spencer Richardson in regard to the reasoning behind the decision.
This sale will also eliminate about $650,000 a month in the company’s burn thanks to its updated model for consumers as part of its streamlining efforts in the company’s third and fourth quarters. “We believe we’re now in a position where we can focus our full energy and resources on the growing number of deals and opportunities knocking on our front door,” according to Richardson.
DropCar has been around since 2015, existing with the goal of bringing the next generation of mobility to the automotive industry’s products and services to people’s front doors, according to Business Wire.
DCAR stock is gaining about 3.2% on Monday following the deal.
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