Guardforce AI Enters into a Definitive Agreement to Acquire Certain of Shenzhen Kewei’s Robot Business-Related Assets in China
December 21 2022 - 8:00AM
Guardforce AI Co., Limited (“Guardforce AI” or the
“Company”) (NASDAQ: GFAI, GFAIW), an integrated security
solutions, AI and Robot-as-a-Service (RaaS) provider, today
announced it has signed a definitive agreement with Shenzhen Kewei
Robot Technology Company Ltd ("Kewei”) to acquire certain of
Kewei’s robot business-related assets in China.
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 purchase price for these assets is expected
to be approximately 2.1 million US dollars, which will be fully
paid in the form of [10,500,000] restricted ordinary shares of the
Company based on $0.20 per share. The Company expects to complete
the acquisition in the first quarter of 2023, subject to customary
closing conditions.
With this acquisition, Guardforce AI will have
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. The
permanent usage of the existing robotic-related patents and
software provides a solid foundation for future RaaS capability,
and the parties anticipate a seamless transition for all existing
clients. With the assets acquired through this acquisition, along
with the robotic companies Guardforce AI acquired in March of 2022,
the Company’s total robotic-related revenue across the entire China
market is expected to reach approximately $12 million in 2023, with
strong growth projected over the next three years.
Olivia Wang, Chairwoman and Chief Executive
Officer of Guardforce AI, commented, “This acquisition is expected
to be truly transformative, as it not only strengthens our foothold
in major cities and regions across China, but also provides us 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. We also look forward to leveraging these
newly acquired capabilities across our global platform and expect
to benefit from meaningful economies of scale. Importantly,
completing the acquisition entirely with stock illustrates the
support from Kewei shareholders and the team’s confidence and
belief in our RaaS business. We look forward to the journey
ahead.”
About Guardforce AI Co.,
Ltd.
Guardforce AI Co., Ltd. (NASDAQ:GFAI, GFAIW) 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. With
more than 40 years of professional experience and a strong customer
foundation, Guardforce AI is developing RaaS solutions that improve
operational efficiency, quickly establishing its presence in the
Asia Pacific region, while expanding globally. For more
information, visit www.guardforceai.com
Twitter: @Guardforceai
Safe Harbor Statement
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not relate to historical facts but are "forward-looking statements"
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
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Investor Relations: David Waldman or Natalya
RudmanCrescendo Communications, LLCEmail: gfai@crescendo-ir.comTel:
212-671-1020
Guardforce AI Corporate CommunicationsHu
YuEmail: yu.hu@guardforceai.com
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