Guardforce AI Co Ltd (NASDAQ:GFAI) said it has signed a definitive agreement with Shenzhen Kewei Robot Technology Company Ltd to acquire certain of Kewei’s robot business-related assets in China for approximately US$2.1 million.
The assets will be paid for in the form of 10,500,000 shares of the company based on a price of $0.20 per share and the company expects to complete the acquisition in the first quarter of 2023.
Kewei will transfer select equipment assets, client base in the sales pipeline and related sales channels and staff, as well as provide rights to the permanent use of its patents, thereby enhancing Guardforce AI’s new Robot-as-a-Service (RaaS) sales and capabilities, the company said.
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Guardforce said this acquisition will give the company access to the entire China market through the sales channels and agents built by Kewei since 2019 and will serve clients across various industries, such as restaurants, hotels, and office buildings, including Fortune 500 customers.
The revenue streams will include robotic rental, advertising, and technical services across most of the major metropolitan cities in China, it noted.
Guardforce AI Olivia Wang said this acquisition was expected to be truly transformative, as it not only strengthens the company’s foothold in major cities and regions across China but also provides it with new capabilities and a diverse customer base across a wide range of industries.
“Kewei has a strong track record of growth, and with the addition of the client base, sales channels and salesforce we are acquiring, we anticipate revenue growth in the robotic sector for the foreseeable future,” Wang said. “We also look forward to leveraging these newly acquired capabilities across our global platform and expect to benefit from meaningful economies of scale.”
Guardforce AI is a global security solutions provider, building on its legacy secured logistic business while expanding and transforming into an integrated AI and Robot-as-a-Service (RaaS) business.
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