Chinese integrated casual menswear company KBS Fashion Group has signed a non-binding letter of intent (LoI) to purchase Greece-based smart clothing technology company Tribe Wearables.
Tribe Wearables offers a range of sports gears and sensors for assessing, coaching athletes and preventing injuries.
Under the LoI, KBS will initially buy 20% of equity interests in Tribe based on the valuation of $5m pre-money by issuing a certain amount of shares of KBS common stock to Tribe’s shareholders.
KBS will nominate at least one member to be on Tribe’s board of directors following the completion of the transaction.
KBS Fashion Group CEO Keyan Yan said: “We conceive that this investment will enhance and expand significantly our clients’ network and products offering.
“We believe KBS will be the preferred manufacturer and exclusive distributor of Tribe products in mainland China and Taiwan.”
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In addition, the deal will allow KBS to buy additional equity interests in Tribe by placing a certain order of Tribe products at the required price and amount. It will also have the right of first refusal on participating in Tribe’s future capital raise.
The transaction is currently subject to completion of due diligence reviews, customary definitive documentation and approval by the respective KBS and Tribe boards of directors.
Yan added: “With the acquisition of Tribe, the management team of KBS continues the implementation of its plan for entering the dynamic market of AI, wearable and smart technology for capturing the ever increasing demand for these products in the wider region and internationally.
“We look forward to welcoming Tribe to be a part of KBS and expect the first stage of acquisition to be completed within the next six months.”
Headquartered in Shishi, China, KBS manufactures and sells own-branded casual menswear products through 33 KBS branded stores as well as various multi-brand stores.