One of the stocks that managed to record significant gains on Thursday was that of child safety and security technology firm ATWEC Technologies, Inc. (OTC:ATWT) after the company made a major announcement earlier this week. Back on Tuesday, the company had announced that it inked a binding Letter of Intent to acquire Level Three Security.
Level Three is based out of Memphis and is involved in providing alarm services for both residential as well as commercial properties. The company’s footprint stretches across the South Eastern region of the United States. The transaction is going to be conducted in both cash and stock and Level Three is then going to function as a separate division of ATWEC.
It goes without saying that it is a significant acquisition for ATWEC and on Thursday, the stock rallied by as much as 14% as investors piled on to the stock. ATWEC has been in businesses since as far back as 1979 and prior to this acquisition, it dealt with three separate safety devices that were meant for children. The products in question help with the safety of children when they are being transported to and from school or when they are at home and give parents as well as teachers peace of mind.
Hence, this particular deal is going to help AWTEC in expanding its offerings considerably and move into new target markets. The reaction in the markets is hence quite understandable. Considering the sort of gains that the AWTEC stock recorded on Thursday, it is likely that it is going to be in focus today among investors and it could be worthwhile to keep an eye on it. The Chief Executive Officer and President of AWTEC, Alex Wiley stated that the deal has a projected cost in excess of $1 million and is going to help the company in boosting its financial outlook in the near term. However, the precise details of the transaction were not disclosed by AWTEC.
Begins Shipping Patented KV-4™ Systems
It is also interesting to note that the AWTEC board approved the transaction unanimously back on July 27 at the Board of Directors meeting.
AWTEC is expected to take control of the assets and liabilities of Level Three and is also going to continue to add new resources in order to strengthen the operations. Earlier this month, there was another important development that created further optimism about AWTEC. The company announced on July 9 that it completed two pilot programs with its product KV-4 child reminder system. The product in question is meant for use in transport vehicles. The product was deemed ready for the market and in the same week, the company started shipping the KV-4 Child Reminder System.
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