MingZhu Logistics Holdings Limited YGMZ has signed a non-binding letter of intent (LOI) to acquire driverless auto technologies and intellectual property (IP) portfolio valued between $80 million and $90 million.
The Carbonomi Trust and CYF (BVI) Limited are being identified as the sellers. The logistics provider will conduct further due diligence on the IP portfolio and negotiate a definitive agreement.
It is to be noted that neither party is under any obligation to enter into or continue negotiations regarding a definitive agreement relating to the transaction. The acquisition is a part of Mingzhu’s previously announced intention to expand and diversify its transportation and logistics business.
After the completion of the acquisition, the company will expand its focus to include Generative AI Large Language Model (LLM) based copilot software for drivers and its operating platform, and Artificial General Intelligence (AGI) based driverless technology and related operating platforms.
“Given the significant revenue contribution from our core transportation and logistics businesses, we are always focused on expanding growth and increasing operating efficiencies for both MingZhu and our customers,” said Chairman and CEO Jinlong Yang.
As of June 30, 2023, MingZhu held a $4.3 million balance of cash and an accounts receivable balance of $15.5 million.
Price Action: YGMZ shares are trading higher by 17.5% at $0.55 on the last check Monday.
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