Transportation and Logistics Systems Inc. (OTCMKTS:TLSS), made an announcement on April 28, 2022, that its operating subsidiary, Shyp FX, Inc. had signed an asset purchase agreement to sell substantially all of its assets in an all-cash transaction. Shyp FX exclusively services Federal Express routes in northern New Jersey.
On Tuesday, TLSS stock gained 2.67% to $0.0077 with 6.99 million shares, compared to its average volume of 10.57 million shares. The stock moved within a range of $0.0074 – 0.0084 after opening trade at $0.0074.
TLSS Signs Agreement to Sell Assets of Shyp FX, Inc
The transaction is expected to generate net proceeds of approximately $755,000, which doesn’t include the expenses incurred by Shyp FX in negotiating or consummating the transaction. Its parent company, Transportation and Logistics Systems has another wholly owned operating subsidiary – Cougar Express, Inc.
As per the terms of the asset purchase agreement, gross proceeds are approximately $830,000, which includes closing adjustments payable in cash at closing, adjusted for a broker’s commission of $75,000. Federal Express has approved the Buyer already. It is just waiting for the final system processing within the company system so the transaction can be closed successfully.
Sebastian Giordano, Chairman and Chief Executive Officer of Transportation and Logistics Systems explains this move – as they keep on evaluating several acquisition targets, organic expansion opportunities, and near-term strategic moves, they have come to the decision that the operations of Shyp FX don’t fit into the long-term growth plans of the company.
Sebastian Giordano, Chairman and Chief Executive Officer of TLSS, commented, “As we continue to evaluate numerous acquisition targets and organic expansion opportunities, as well as, in anticipation of other near-term strategic moves we are contemplating, we have concluded that the operations of FX no longer fit into our long-term growth plans.”
TLSS stock is trading below the 20-Day and 50-Day Moving averages of $0.0089 and $0.0105 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0151.