What's Going On With Kraken Robotics?
Kraken Robotics (KRKNF) stock crashed today after signing a definitive share purchase agreement in which Kraken Robotics Systems Inc., a wholly-owned subsidiary of Kraken, will acquire all of the issued share capital of PGH Capital. PanGeo is a private Canadian services company specializing in high-resolution 3D acoustic imaging solutions for the sub-seabed with offices in St. John's, Newfoundland and Aberdeen, United Kingdom. Shares of the company were trading lower -16.31% to $0.38 a share on Wednesday.
What Does This Mean For Kraken Robotics?
The trasbactiln includes $3 million payable in immediately available funds on the closing date of the PanGeo Transaction. 12,068,965 shares with a value of $0.58 each and $7 million in the aggregate are to be issued on the closing date, with $4 million to be paid in cash, plus interest at a rate of 6% per annum, on the second anniversary of the Closing Date, to be evidenced by non-transferable promissory notes.
Kraken believes the completion of the PanGeo transaction will further enhance its vertical move into the provision of offshore survey and inspection services using Kraken technology as part of a robotics/data as a service business model.
"Since plans for our OceanVision project started in 2018, we have been preparing our industry leading Synthetic Aperture Sonar and 3D underwater laser scanning technologies to be used in a robotics/data as a service (RDaaS) business model as opposed to a product only strategy. While customers in the defense industry generally purchase this technology, in the commercial market customers are more focused on the provision of services by capable third-party companies. We expect that PanGeo will complement Kraken's existing products and services with a stronger base of recurring revenues. As in the past, we expect PanGeo and Kraken will continue to work with many offshore service companies that prime these jobs and integrate specific scopes of work from various sub-contractors," said Karl Kenny, Kraken President and CEO.
Kraken Robotics Inc., a marine technology company, designs, manufactures, and sells software-centric sensors, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications.