After having delivered a fairly strong performance in the previous days, the Guardforce AI Co Limited (NASDAQ:GFAI) stock went through a sharp correction yesterday and decline by 8% for the day.
Trading Data
On Tuesday, GFAI stock moved down 8.30% to $1.22 with more than 8.28 million shares, compared to its average volume of 10.52 million shares. The stock moved within a range of $1.1200 – 1.3299 after opening trade at $1.31.
Guardforce AI Closes Deal to Acquire Shenzhen Keweien & Guangzhou Kewei
However, at the same time, it is perhaps necessary for investors to keep in mind that despite the sharp fall, the stock is still up by as much as 28% in the past week. The company, which is known for providing integrated security solutions, announced yesterday that it had managed to complete the acquisitions of Shenzhen Keweien Robot Service Co Ltd and Guangzhou Kewei Robot Technology Co Ltd.
The transaction was completed by the company in both cash and stock. The total value of the transaction was $10,000,000 and Guardforce AI paid 10% of it in the form of cash, while the rest of the sum was paid in the form of restricted ordinary shares in the company.
In addition to that, the company also noted that the closing conditions had also been satisfied earlier than had been originally anticipated. Although the stock suffered from a decline yesterday, it will be interesting to see if it can actually manage to add to its gains.
Technical Data
GFAI stock is trading above the 20-Day and 50-Day Moving averages of $0.85 and $0.79 respectively. However, the stock is trading below the 200-Day moving average of $1.54.
