Shares of Aluf Holdings (OTCMKTS:AHIX) closed sharply higher in the previous trading session.
Market Action
On Friday, AHIX stock soared 42.64% at $0.1134 with more than 327K shares, compared to its average volume of 28K shares. The stock has moved within a range of $0.0795 – 0.1632 after opening the trade at $0.0794.
Non-Binding Letter of Intent to Acquire Security Technology Management Company
A holding company with headquarters in Fort Lauderdale (Florida), Aluf Holdings (OTCMKTS:AHIX) is involved in acquiring, operating, and managing subsidiary companies in the development and sale of proprietary software. It has made a major announcement regarding the execution of a Letter of Intent. This non-binding LOI is for acquiring a privately held, yet extremely profitable security and technology management consulting firm.
When it comes to meeting demand for project and program management along with technical resource support, the Intelligence Community in the United States continues to be bombarded with several hurdles. The situation has only worsened with the onset of the Covid-19 pandemic.
The company’s business model offers an excellent opportunity to combat these challenges, while getting access to multi-year, 9-figure budget contracts and IT staffing IDIQ. The company has been engaged in business for almost a couple of decades and established solid, long-term relationships within the Intelligence Community.
Last but not least; the company operates in a cash flow positive position with growing revenue. The Terms of the LOI and Business Purchase Agreement include a total consideration for this transaction of $500,000 in cash at closing with short-term seller financing in an unsecured sellers note. However, there are quite a few financing and customary due-diligence and closing conditions that have to be fulfilled before the transaction is officially declared as closed.
Traders Note
AHIX stock is trading below the 200-Day and 50-Day Moving averages of $0.17 and $0.14 respectively. However, the stock is trading above the 20-Day moving average of $0.11. The stock is down 29% over the past month.
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