On Friday, Guardforce AI Co. Limited (Nasdaq: GFAI) experienced a significant 4.33% increase in pre-market trading, with shares reaching $12.77 at the last check. This surge in stock price came shortly after the company announced the completion of an asset acquisition. Guardforce AI, a leading integrated security solution provider that offers AI and Robot-as-a-Service (RaaS), is well-positioned to capitalize on the growing demand for cutting-edge security technologies. With this recent acquisition, the company is poised to strengthen its market position and expand its range of innovative services.
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Which acquisition has GFAI completed?
Guardforce AI (GFAI) has recently completed its acquisition of certain robot business assets in China from Shenzhen Kewei Robot Technology Company Ltd (“Kewei”). As part of the acquisition, Kewei’s patents and associated equipment, customers, sales pipelines, and sales channels will be transferred, as well as the rights to use Kewei’s patents permanently. In addition to Fortune 500 companies, the acquired business serves restaurants, hotels, and office buildings among other industries.
Aside from its advanced AI capabilities, Guardforce AI’s acquisition of Kewei’s patent rights is expected to boost its RaaS development capabilities. As a leading provider of innovative robotic solutions in China and beyond, Guardforce AI hopes to strengthen its position through this acquisition.
An acquisition agreement with a purchase price of USD $2.1 million was signed on December 21, 2022. An initial payment of 10,500,000 restricted ordinary shares of the Company at a price of $0.20 per share was expected to cover the acquisition.
The reverse split of a 1:40 ratio was implemented following the approval of GFAI’s special shareholder meeting on January 31, 2023. Consequently, a split-adjusted price of $8.00 per share will be paid for the acquisition using [262,500] restricted ordinary shares.
In what ways will the acquisition benefit GFAI?
The new acquisition will significantly enhance GFAI’s capabilities to develop cutting-edge robotic solutions for its customers as a rapidly growing Robotics-as-a-Service (RaaS) provider. As Guardforce AI (GFAI) expands its global presence and builds its AI resources, it will be able to offer a wider array of RaaS solutions, including AI-based robot advertising, hotel support, and AI-based AI services to meet rapidly growing tourism demands.