Guardforce AI Co., Limited (NASDAQ: GFAI) operates as an integrated security solutions company, which provides protective transportation services for high-value assets for the public and private sectors. Shares of the security company are surging 61% through early trading on Friday, January 14, 2022. Over the past three months, Guardforce AI has seen average daily volume of 2.64 million shares. However, volume of 70.14 million shares or dollar volume of around $122.75 million, has already exchanged hands through early trading Friday.
Shares of Guardforce AI are soaring after the company announced plans to expand its Robotics-as-a-Service (RaaS) after proposing the acquisitions of Shenzhen Keweien Robot Service Co., Ltd. and Guangzhou Kewei Robot Technology Co., Ltd in a cash and equity deal. Both proposed acquisition entities are based in the Greater Bay Area region of China, which is considered to be one of the fastest growing economic regions of the country.
Under the terms of the acquisitions, the purchase price of the acquisitions will equate to 0.55-times five year projected average revenue for both entities, which is estimated to be around $10 million. A 90% majority of the acquisition will feature restricted equity at a price per share of $4.20, with the remaining 10% coming in the form of cash. The acquisition is still subject to completed due diligence, execution of definitive agreements, and third-party consents.
Lei Wang, CEO of Guardforce AI, commented, “This strategic acquisition is emblematic of Guardforce AI’s growth strategy of acquiring successful companies that are leaders in their field. This development is expected to contribute to our goal of scaling operations while providing swift entry into highly evolving markets. China’s surging focus in robotics development and AI applications makes this proposed acquisition a natural fit for us. As a result of this proposed acquisition, we will gain an incredibly experienced and established sales team. Upon the completion, SZ and GZ will benefit from Guardforce AI’s global scale and presence, allowing them enhanced international opportunities.”
Disclosure: Neither Spotlight Growth nor its officers have any position or relationship with any companies mentioned in this article, but may choose to initiate a position at any time. No payment was made to create this article. This article should not be taken as a solicitation or recommendation to buy or sell any securities. Please conduct your own research and consult your financial advisor to determine your risk tolerance and investment path. We are not licensed brokers or investment advisors.
