China-based KBS Fashion Group Limited, a casual menswear firm, has attained a non-binding Letter of Intent to acquire Tribe Wearables – a Greek private smart apparel tech company.
The Letter of Intent clearly states that KBS will first acquire 20 per cent of equity interests in the company based on the valuation of US $ 5,000,000 pre money by issuing some amount of shares of KBS’s common stock to the shareholders of Tribe.
The Board of Directors at Tribe Wearables will have at least 1 member nominated by KBS Group once the acquisition is complete.
Besides, KBS is entitled to buy additional equity interests in the Greek apparel company by placing some of the latter’s products at the required price under the Letter of Intent.
Additionally, KBS will have the right of first refusal on participating in Tribe’s future capital raise.
“We are very excited to invest in Tribe, one of the most innovative smart clothing technology companies worldwide. We conceive that this investment will enhance and expand significantly our clients network and products offering.” – Keyan Yan, CEO, KBS
Notably, the smart apparel market may surpass 2 trillion US dollars in size in 2019 and KBS is in a good position to capture a good part of this market. The first stage of the acquisition is expected to be completed in next 6 months.
