GFAI - Guardforce AI signs LOI for purchasing 36 of the Kewei Robot Technology subsidiaries

Guardforce AI (NASDAQ:GFAI) signed a non-binding LOI with Shenzhen Kewei Robot Technology and Shenzhen Yeantec for purchasing up to 36 of the Kewei Group's subsidiaries located in China. Under the signed LOI, 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 purchase the remaining 28 companies within a period of 24 months from the LOI signing date. The purchase of the additional 28 companies will be dependent on the company's operational plans. Guardforce expects to sign the definitive agreement for the phase one acquisitions before May end. The purchase price for the eight phase one companies will be based upon a valuation that is equal to one-time projected average revenues for the eight companies estimated to be $30M; it will be paid in a mix of cash (10%) and company restricted shares (90%) at $2/share.

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Guardforce AI signs LOI for purchasing 36 of the Kewei Robot Technology subsidiaries