Guardforce AI Co., Limited (“Guardforce AI” or the “Company”), an integrated security solution, AI and Robot-as-a-Service (RaaS) provider, today announced it has closed the acquisition with Shenzhen Kewei Robot Technology Company Ltd ("Kewei”) to acquire certain of Kewei’s robot business assets in China.
The acquisition includes the transfer of certain equipment, clients in the sales pipeline, related sales channels and staff, as well as rights to the permanent use of its patents. Customers for the acquired business span various industries, such as restaurants, hotels, and office buildings, including Fortune 500 companies. Additionally, the acquired rights to patents are expected to further enhance Guardforce AI’s capabilities in RaaS development, which complement the Company’s advanced AI capabilities.
The definitive agreement was signed on December 21, 2022, and the total purchase price for this acquisition was USD $2.1 million. The acquisition was originally expected to be paid fully in the form of 10,500,000 restricted ordinary shares of the Company based on $0.20 per share. With the approval of Guardforce AI’s special shareholder meeting on January 31, 2023 for a reverse split of a 1:40 ratio, the acquisition will be paid in [262,500] restricted ordinary shares of the Company based on $8.00 per share on a split adjusted basis.
Olivia Wang, Chairwoman and Chief Executive Officer of Guardforce AI, commented, “As a growing RaaS solution provider, the newly acquired robot assets and rights to patents are expected to further strengthen our capabilities in developing robotic solutions for our customers. Moreover, with an expanded global footprint and growing AI resources, we look forward to further expanding our RaaS solutions such as AIoT robot advertising, AI-based support for hotels, and other uses of AI services, especially within the tourism industry where we are witnessing rapid growth in demand.”