Kinetic Group, Inc. Finalizes Acquisition of Binnops US Technologies Inc- An AI Company Providing Digital Transformation Solutions to Enterprises

Rhea-AI Summary

Kinetic Group, Inc. (OTC: KNIT) has finalized the acquisition of Binnops US Technologies Inc., a leading AI company providing digital transformation solutions to enterprises. The acquisition positions KNIT as a leading provider of Digital Twins, Smart Assets, AI predictive analytics, and Metaverse engagement to enterprises and retail clients. With expected sales of US$5.1M and EBITDA of US$2.8M in the first year after the acquisition, Binnops' smart asset solutions drive real digital transformation solutions that enhance an enterprise's margins by increasing efficiency and productivity and managing risk through predictive analytics.

Positive

• Acquisition positions KNIT as a leading provider of digital transformation solutions
• Expected sales of US$5.1M and EBITDA of US$2.8M in the first year after the acquisition

Negative

• None.

Kinetic Group, Inc. Finalizes Acquisition of Binnops US Technologies Inc.- A Leading AI Company Providing Digital Transformation Solutions to Enterprises

Increasing Enterprises' Margins by Making Physical Assets and Processes Smarter, More Productive, More Efficient  

MIAMI, Jan. 3, 2024 /PRNewswire/ -- Kinetic Group Inc., (OTC: KNIT), www.knitgrp.com, has acquired 100% of US based BINNOPS US TECHNOLOGIES INC in an all stock transaction. Binnops is a leading provider of profitable artificial intelligence software solutions to enterprises in the energy, manufacturing, transportation, aeronautical, retail and government sectors.

The acquisition positions KNIT as a leading provider of Digital Twins, Smart Assets, AI predictive analytics and Metaverse engagement to enterprises and retail clients.  Delivering transformative digital technologies since 2016, Binnops has provided customizable solutions to leading Fortune 500 companies, across the globe, with lifetime contract revenue of over six million dollars. As a result, KNIT acquires a robust portfolio of clients, spanning the globe, and a pipeline of business opportunities. With expected sales of US$5.1M and EBITDA of US$2.8M, in the first year after the acquisition, Binnops' smart asset solutions drive real digital transformation solutions that enhance an enterprises' margins by increasing efficiency and productivity and managing risk through predictive analytics.  KNIT can go beyond the hype and deliver real results.

Ana María Méndez, Founder and Chairwoman of KNIT said "We recognize the need for enterprises to embark on their digital transformation journey and with this acquisition KNIT is the perfect partner to go on this journey. We also recognize the outstanding management team that has taken Binnops this far and are certain that the acquisition will only enhance the team's capabilities." We are committed to KNIT's expansion and increasing its market share in the AI space. We also expect to uplist to the OTCQB market in the near term".

KNIT hired CIM Securities LLC as lead placement agent in a $3 million raise structured as an 8% PIK Dividend Series A Convertible Participating Preferred.  The preferred offers a 1.5x liquidation preference and is priced at $1.00 per preferred share. Use of funds is to promote international sales and rollout a subscription-based revenue model.

CIM Securities is an investment banking and venture capital firm for growing middle market companies. CIM Securities is headquartered in Centenial, Colorado.

Safe Harbor Forward-Looking Statements:

This press release may contain forward looking statements that are based on current expectations, forecasts, and assumptions that involve risks as well as uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the SEC. Among other matters, the Company may not be able to sustain growth or profitability based upon many factors including but not limited to general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing as well as new service lines noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations we will be providing services in, the impact of which cannot be predicted at this time.

CONTACT: 7867126827, otcknit@gmail.com

 

View original content:https://www.prnewswire.com/news-releases/kinetic-group-inc-finalizes-acquisition-of-binnops-us-technologies-inc--an-ai-company-providing-digital-transformation-solutions-to-enterprises-302025341.html

SOURCE Kinetic Group Inc.

FAQ

What company has Kinetic Group, Inc. (OTC: KNIT) acquired?

Kinetic Group, Inc. (OTC: KNIT) has acquired Binnops US Technologies Inc.

What industries does Binnops US Technologies Inc. provide AI solutions to?

Binnops US Technologies Inc. provides AI solutions to enterprises in the energy, manufacturing, transportation, aeronautical, retail, and government sectors.

What are the expected sales and EBITDA after the acquisition?

The expected sales after the acquisition are US$5.1M and EBITDA is US$2.8M in the first year.

What is the purpose of the $3 million raise?

The purpose of the $3 million raise is to promote international sales and rollout a subscription-based revenue model.

Who is the lead placement agent for the $3 million raise?

CIM Securities LLC is the lead placement agent for the $3 million raise.