- Oops!Something went wrong.Please try again later.
Guardforce AI Co Ltd (NASDAQ: GFAI) has signed a non-binding Letter of Intent with Shenzhen Kewei Robot Technology Co., Limited and Shenzhen Yeantec Co., Limited to purchase up to 36 Kewei Group's subsidiaries located in China.
In the first of two phases, Guardforce AI will acquire eight of the Kewei Group companies. The second phase provides Guardforce AI the right of first refusal to buy the remaining 28 companies within 24 months from signing the LOI.
GFAI expects to sign the definitive agreement for the phase one acquisitions before May end.
The purchase price for the eight phase-one companies is estimated to be $30 million and will be paid in a mix of cash (10%) and GFAI's restricted shares (90%) at $2.00 per share.
Seven of the eight companies are well-established with experienced salesforce and management teams that provide robotics sales and rental services.
Price Action: GFAI shares are trading higher by 8.02% at $1.21 on the last check Monday.
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.