Applied UV Inc (NASDAQ: AUVI) stock rallied as much as 49.2% premarket after acquiring all the assets of KES Science & Technology, or KES, and JJS Technologies, or JJS, two private companies based in Georgia.
The acquisition gives Applied UV the rights to manufacture and sell all patented air disinfection and purification technologies for $4.3 million in cash and 300,000 shares of its common stock.
The deal has boosted Applied UV’s portfolio of air purification products and has expanded its customer base as it inherits the two firms’ clientele. The two companies did not have long-term debts or non-operating liabilities, making the deal a significant win for Applied UV.
Applied UV now has access to KES’s Airocide System of patented air disinfection and purification technologies, initially developed for NASA as a patented pathogen killing technology.
Q Saeed, Applied UV’s CEO, said: “The KES acquisition is a great opportunity to simultaneously enhance our financial profile while driving even greater value for customers and shareholders. We have been very familiar with the quality of the KES product offering and leadership team and impressed by what they have accomplished.”
“The addition of KES is a major step forward in building out our air purification business… KES strengthens and expands our product offering and development capabilities and allows for greater opportunities to scale our fast-growing air purification platform.”
Applied UV will also benefit immensely from KES’s penetration into the food distribution sector, the cannabis and post-harvest markets, and the wineries and retail segments.
KES is expected to generate $5M to 7M in revenues during the 2022 financial year, immediately accretive to Applied UV’s earnings.
Applied UV stock price.
Applied UV stock rallied 49.16% to trade at $9.74, rising from Tuesday’s closing price of $6.53.
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