On Friday, The Singing Machine Company, Inc. (NASDAQ:MICS) completed the acquisition of SemiCab, an artificial intelligence technology company in the global logistics space.
The transaction was structured as an asset purchase/sale. At closing, Singing Machine will issue to SemiCab 641,806 shares of its common stock, which represents approximately 10% of the company's issued and outstanding common stock as of July 3, 2024, and the assumption of approximately $2.6 million in liabilities as of March-end. The deal was announced on June 12.
"SemiCab's technology creates a compelling financial win-win for carriers and enterprise-level Fortune 1000 clients through significant cost savings and efficiencies," said Gary Atkinson, CEO.
In addition, at closing, Singing Machine will issue to SemiCab a 20% membership interest in its newly formed wholly owned subsidiary, SemiCab Holdings.
As part of the deal, the company has also entered into an option agreement to purchase SMCB Solutions Private Limited, a wholly-owned subsidiary of SemiCab based in Bangalore, India. This subsidiary currently caters to the technology requirements of both businesses and serves enterprise customers in India.
The consideration for this portion of the transaction will involve an additional 320,903 shares of the company's common stock.
The transaction is anticipated to be finalized before August-end, pending regulatory compliance and approvals in India.
This subsidiary has generated approximately $1.4 million in sales for the last twelve-month period ended March.
Price Action: MICS shares are trading higher by 5.22% to $1.21 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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