Guardforce AI (NASDAQ:GFAI) stock is rocketing higher on Friday following news of a deal to acquire two robotics companies.
That deal will see Guardforce AI acquiring both Shenzhen Keweien Robot Service and Guangzhou Kewei Robot Technology. The purchase price is valued at $ 10 million and the payment will be 10% cash and 90% restricted shares of the company’s stock.
According to Guardforce AI, it expects this acquisition to be beneficial to its robotics as a service (RaaS) business initiative. Both companies being bought by GFAI are currently based in China’s Greater Bay area.
Guardforce AI released the following statement in its press release announcing the deal.
“Focused on the hospitality, healthcare, property management, and government sectors, SZ and GZ derive revenues from AI robotic services which automate repetitive tasks, making them less labor intensive.”
So when can investors expect the deal to close? It won’t be too long. Guardforce AI says it plans to complete its acquisition of the two companies in April 2022.
Today’s news has GFAI stock seeing heavy trading. As of this writing, more than 159 million shares of the stock have changed hands. That’s quite the jump from its daily average trading volume of about 4.8 million shares.
GFAI stock is up 83.1% as of Friday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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