Shares of the Guardforce AI Co., Limited (GFAI) stock were rising in the current market trading session today on January 14, 2022. GFAI stock price saw a push of 92.85% to reach $2.02 a share at the time of this writing. The trading volume on the last check was 8,270,132, higher than the average trading volume. Let’s understand the reason behind this rally
GFAI stock became bullish in the current market trading session after the company announced that it is expanding Robotics as a Service (RaaS) to China’s Greater Bay Area. The company will expand RaaS offering via the proposed acquisition of Shenzhen Keweien Robot Service Co., Ltd (“SZ”) and Guangzhou Kewei Robot Technology Co., Ltd (“GZ”). The proposed acquisition is expected to end by the end of February 2022.
The purchased price is estimated to be US$10,000,000, which represents 0.55-times five years (from the year 2022 to the year 2026) projected average revenue for both GZ and SZ. The company will pay this payment in the form of a 10% mix of cash and 90% restricted shares of GFAI stock at $4.20 per share price.
Preliminary Financial Results of GFAI stock
GuardForce on January 11, 2021, reported preliminary unaudited full year 2021 financial results. According to the results, the company expects
- Revenue in the range of $33 million to $35 million, which means the revenue will decrease 9.3% to 14.5% for the full year 2021.
- Inorganic revenues of approximately $0.5 million which represents 1.4% of total net revenues.
- Non-cash revenues of approximately $0.8 million, which represents 2.4% of total net revenues.
Outlook of GFAI stock for 2022
For the full year of 2022, GuardForce AI expects that
- Net revenue for the full year 2022 will be in the range of $55 million to $60 million. This means that the company is expecting a growth of 66% from 2021.
- The company has projected inorganic revenues of $21 million approximately for the full year of 2021. This represents 36% of the total net revenues.
- The company is anticipating non-cash revenues of $25.5 million This represents 44% of the total revenues.
So far so good for GFAI stock as far as market sentiment is concerned. The stock is performing well for the past 30 days and gained 14.60% last month. However, the stock has lost 64.11% in the last six months.