Guardforce AI signs LOI for purchasing 36 of the Kewei Robot Technology subsidiaries

• Guardforce AI (NASDAQ:GFAI) signed a non-binding LOI with Shenzhen Kewei Robot Technology and Shenzhen Yeantec for purchasing up to 36 of the Kewei Group's subsidiaries located in China.
• Under the signed LOI, in the first of two phases, Guardforce AI will acquire eight of the Kewei Group companies.
• The second phase provides Guardforce AI the right of first refusal to purchase the remaining 28 companies within a period of 24 months from the LOI signing date.
• The purchase of the additional 28 companies will be dependent on the company's operational plans.
• Guardforce expects to sign the definitive agreement for the phase one acquisitions before May end.
• The purchase price for the eight phase one companies will be based upon a valuation that is equal to one-time projected average revenues for the eight companies estimated to be $30M; it will be paid in a mix of cash (10%) and company restricted shares (90%) at $2/share.