Guardforce AI Co., Limited (GFAI) surged in the current market after announcing the signing of the previously proposed agreement. GFAI values at $1.19, gaining more than 121.41% compared to yesterday’s closing price. The stock closed at $0.54 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.15 million shares. The current market cap of the company is about $15.65 million.
GFAI: The Acquisition
Guardforce AI Co., Limited (GFAI) (GZ) signed an agreement of acquisition of Shenzhen Keweien Robot Service Co., Ltd. (SZ) and Guangzhou Kewei Robot Technology Co., Ltd. (KRT). Guardforce AI’s robotics-as-a-service (RaaS) business effort is likely to benefit significantly from this acquisition. The company expects that by the end of April the deal will be official.
Located in China’s Greater Bay Area, Shenzhen and Guangzhou are two of the country’s most populous cities and among the world’s 30 most populous cities, respectively. SZ and GZ generate money through AI robotic services that automate repetitive jobs and reduce labor intensity in the hotel, healthcare, property management, and government sectors.
GFAI: Acquisition details
Payment of the $10 million acquisition purchase price will be made in a combination of 10% cash and 90% restricted ordinary shares of the Company. Guardforce AI is now traded on the Nasdaq Capital Market in the United States under the symbol GFAI. The pricing of each share is $4.20 for the purposes of the formal acquisition agreement
GFAI: 2022 Outlook
GFAI expects revenue forecasts for the entire year of 2022 at US$55-60 million, reflecting a gain of more than 66% over the previous year.
The company forecasts that inorganic and non-cash revenues will total $21 million and $25.5 million, respectively.
The company inked the previously proposed agreement today. As a result of the deal, its stock has skyrocketed in the current market. It will have a significant effect on the revenue of the company.