KINETIC Group (OTC:KNIT) ("KNIT") Acquires GSS Infrastructure LLC in an All Stock Transaction

Rhea-AI Summary

Kinetic Group (USOTC: KNIT) announced on May 27, 2022, a Letter of Intent to acquire GSS Infrastructure (GSSI) for a 100% equity stake. The all-stock purchase will provide KNIT with valuable telecom assets, including 50 tower sites and contracts with Telefonica Ecuador. This strategic acquisition aims to enhance KNIT's presence in Latin America, capitalizing on the region's 5G expansion opportunities. The transaction remains subject to conditions and definitive documentation.

Positive

• Acquisition of GSSI positions KNIT in the growing Latin American telecom market.
• Expected ownership of 50 telecom tower sites and extensive fiber infrastructure.
• Strategic contracts with Telefonica Ecuador to enhance operational capabilities.

Negative

• Acquisition completion is contingent on certain conditions, adding uncertainty.
• Potential integration challenges post-acquisition could affect operational efficiency.

Orlando, Fla., May 27, 2022 /PRNewswire/ -- KINETIC GROUP (USOTC: KNIT) ("KNIT") today announced that it has signed a binding Letter of Intent ("LOI") with GSS INFRASTRUCTURE ("GSSI") www.gssinfrastructure.com to acquire a 100% interest in GSSI. The Transaction remains subject to certain conditions being met and completion of definitive documentation.

Under the terms of the LOI signed on May 18, 2022 KNIT will acquire GSSI in an all stock purchase.  As a result of the acquisition, KNIT will acquire all of GSSI's assets, including the binding LOI signed between GSSI and NTEC on March 31, 2022. At the closing of the GSSI-NTEC transaction KNIT will effectively own and operate 50 telecom tower sites, 187 equipment overlays and 267km of fiber. KNIT would also acquire three separate long term contracts with Telefonica Ecuador (OTECEL) to operate active and passive telecom infrastructure in Ecuador.

Ana María Méndez, KNIT's CEO stated, "The acquisition of GSSi provides KNIT with an important foothold in Latin America to expand our presence in the wireless infrastructure space. We strongly believe the region has additional long term opportunities and given GSSi's experienced management team we will be able to continue our growth strategy.  Undoubtedly, the rapid expansion of 5G in the region will provide enormous opportunities for KNIT revenue and footprint expansion."

https://www.gssinfrastructure.com/press

Cautionary Note Regarding Forward-Looking Information

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements", including with respect to proposed acquisitions or business combinations. No assurances can be given that the business combinations discussed above will be completed. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company. This forward-looking information is based on reasonable assumptions and estimates of management of the Corporation, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

CONTACT INFORMATION:

KINETIC GROUP (OTC:KNIT)
ir@knitgrp.com 
Tel: +1.800.401.4313

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SOURCE Kinetic Group

FAQ

What is Kinetic Group's acquisition of GSS Infrastructure about?

Kinetic Group is acquiring GSS Infrastructure to expand its telecom operations, specifically to gain assets and contracts in Latin America.

What assets will Kinetic Group acquire from GSS Infrastructure?

Kinetic Group will acquire 50 telecom tower sites, equipment overlays, and contracts with Telefonica Ecuador.

How will this acquisition impact Kinetic Group's business?

The acquisition is expected to enhance Kinetic Group's market presence and revenue potential in the 5G telecom sector in Latin America.

When was the Letter of Intent for the acquisition signed?

The Letter of Intent was signed on May 18, 2022.

What are the risks associated with the acquisition of GSS Infrastructure?

The acquisition is subject to conditions that may affect its completion, and integration challenges may arise post-acquisition.