Transportation and Logistics Systems Inc. (OTCMKTS:TLSS), has announced on September 16, 2022, via wholly-owned subsidiary, TLSS-FC, Inc. about closing on a stock purchase agreement after acquiring 100% of the outstanding stock of Freight Connections, Inc. It is situated in Ridgefield Park, New Jersey.
On Tuesday, TLSS stock increased 21.05% to $0.0069 with more than 50.56 million shares, compared to its average volume of 6.50 million shares. The stock moved within a range of $0.0057 – 0.0070 after opening trade at $0.0059.
TLSS Closes the Acquisition of Freight Connections, Inc.
The total purchase price was $9,365,000, along with closing adjustments and expenses of $536,139. TLSS paid $1,501,291 in cash at the time of closing, while entering into a $4,544,671 secured promissory note with the Seller. Interest will be accrued at the rate of 5% per annum and then 10% per annum as of March 1, 2023.
TLSS shall also issue to the Seller stock of the company, with a value at closing of $3,513,571, shares of common stock of the company equal to no more than 4.99% of the number of shares of common stock outstanding immediately after such issuance, and promptly after closing, the balance of the shares in Series H Convertible Preferred Stock, a new series of non-voting, convertible preferred stock issuable to sellers in connection with acquisitions or strategic transactions approved by a majority of the directors of the company.
Sebastian Giordano, Chairman and Chief Executive Officer of TLSS, said that Freight Connections is an upcoming and profitable business that offers services like transportation, warehousing, consolidating, distribution, and local cartage services across the tri-state area. Joseph Corbisiero, the sole owner of the company brings over three decades of experience, and stays on as President and CEO of the FC subsidiary.
Sebastian Giordano, Chairman and Chief Executive Officer of TLSS, commented, “Freight Connections is a growing, profitable New Jersey-based business offering an array of transportation, warehousing, consolidating, distribution, and local cartage services throughout the tri-state area. Moreover, I am glad that its sole owner, Joseph Corbisiero, a seasoned operator, with over 30 years of industry experience, will be staying on as President and CEO of the FC subsidiary to continue growing the business even further.”
TLSS stock is trading above the 20-Day and 50-Day Moving averages of $0.0066 and $0.0064 respectively. However, the stock is trading below the 200-Day moving average of $0.0096. The company has a total market capitalization of $1.30 million.