Logistics service provider, Transportation and Logistics Systems Inc (OTCMKTS:TLSS), on May 26, 2022, announced that the company on May 23, 2022, had entered into a stock purchase agreement through its wholly-owned subsidiary. This will allow the firm to take 100% of the outstanding stock of New Jersey-based business, Freight Connections, which provides a series of warehousing, transportation, distribution, and local cartage services in the tri-state area.
Trading Data
On Thursday, TLSS stock surged 44.90% to $0.0071 with 37.53 million shares, compared to its average volume of 11.71 million shares. The stock moved within a range of $0.0052 – 0.0074 after opening trade at $0.0054.
TLSS Signs Agreement to Acquire Freight Connections, Inc.
Sebastian Giordano, Chairman, and Chief Executive Officer, TLSS said that Freight Connections is a profitable operation with about 200,000 square feet of warehouse space. The CEO expressed excitement about the opportunity to re-establish a base of operations in Northern New Jersey with a more robust business as well as an experienced operator. Giordano added that the company has over three decades of experience, which can assist with growing the business further.
The final transaction is expected to be over in two months, subject to the finishing of due diligence by the firm and receiving some third-party consent and financing.
TLSS, through its wholly-owned operating subsidiaries, Cougar Express, Inc as well as Shyp FX, Inc., operates as a complete logistics and transportation company. The above development will help the firm establish a robust presence in New Jersey.
Key Quote
Sebastian Giordano, Chairman and Chief Executive Officer of TLSS, commented, “Freight Connections is a well-run, profitable operation with approximately 200,000 square feet of warehouse space servicing nearly 500 commercial accounts. We are very excited about the opportunity to re-establish a base of operations in Northern New Jersey, only now, with a much stronger business and a seasoned operator, with over 30 years of industry experience, who will be staying on to help grow the business even further.”
Technical Data
TLSS stock is trading below the 50-Day and 200-Day Moving averages of $0.0088 and $0.0145 respectively. However, the stock is trading above the 20-Day moving average of $0.0070.
