Aluf Holdings, Inc.  Enters Into Non-Binding Letter of Intent to Acquire Communications and Information Technology Company Serving Commercial and Government Markets

Rhea-AI Summary

Aluf Holdings, Inc. (AHIX) announced a non-binding Letter of Intent to acquire a privately held communications and IT firm, aligning with its strategic goals for growth and profitability. The acquisition, valued at $12M, will involve a mix of restricted stock and short-term seller financing. The target company’s founders, boasting over 40 years of industry experience, will remain with Aluf for at least five years post-acquisition. A definitive agreement is expected by December 31, 2021, following satisfactory due diligence.

Positive

• Acquisition aligned with strategic growth and profitability goals.
• Target company expected to contribute to positive cash flow.
• Projected valuation exceeding $25M within three years.

Negative

• Integration challenges from the acquisition process.
• Risks associated with the reliance on external financing.

FORT LAUDERDALE, Fla., Nov. 30, 2021 (GLOBE NEWSWIRE) -- Aluf Holdings, Inc. ("AHIX") ("Aluf") (OTC PINK: AHIX) is a holding company headquartered in Fort Lauderdale, FL, engaged in acquiring, operating, and managing subsidiary companies in the development and sale of proprietary software, today announced the execution of a non-binding Letter of Intent to acquire a privately held, communications and information technology company.

The LOI forms the basis of an agreement which, if consummated, is consistent with the Company`s strategic plan to aggressively achieve profitability and growth through insightful value-added mergers and acquisitions.

There are several steps outlined in the LOI, and after completion of satisfactory due diligence, a definitive agreement will be executed.

A definitive agreement is currently under review by corporate council. Subject to the acceptance of the definitive agreement, closing is expected to take place on or before December 31, 2021.

Transaction Highlights

The founders have over 40 years’ experience and have developed long term relationships within the Communications and IT community and will remain with the Company for a period of not less than 5 years after closing. The Company operates in a cash flow positive position with projected year over year growth expected to result in a valuation of over $25M by the end of year three.

The Terms of the Letter of Intent contemplate a total consideration for this transaction of $12M which includes issuance of restricted common stock and short-term seller financing in the form of an unsecured promissory note.

About Aluf Holdings, Inc.:

Aluf Holdings, Inc. is a publicly traded holding company whose core competency is to strategically acquire, manage and propel technology companies into the future. Our core focus is the Biometric, Cybersecurity, Blockchain, and Software/Hardware verticals. For more information go to www.aluf.com

Safe Harbor Statement:

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.

Corporate Contact:

Aluf Holdings, Inc.
Teresa McWilliams
Chief Financial Officer
866-793-1110

FAQ

What is the reason behind Aluf Holdings' acquisition of the IT company?

The acquisition aligns with Aluf Holdings' strategic plan to achieve profitability and growth through mergers.

What is the expected closing date for Aluf Holdings' acquisition?

Closing is anticipated on or before December 31, 2021.

How much is Aluf Holdings paying for the acquisition?

The total consideration for the acquisition is $12M.

What experience do the founders of the target company bring to Aluf Holdings?

The founders have over 40 years of experience in the Communications and IT industry.

What are the financial projections after the acquisition?

The target company is projected to lead Aluf Holdings to a valuation over $25M by the end of year three.