After a strategic transaction was announced, Cheetah Net Supply Chain Service Inc. (NASDAQ: CTNT) shares jumped 186.50% to $5.36. The company’s recent purchase deal with TW & EW Services Inc., a labor and logistics services provider located in California, is responsible for this notable gain in stock value. The acquisition, which is set to close around December 4, 2024, positions Cheetah Net to strengthen its service offerings and expand its market presence.
Details of the Acquisition Agreement
A crucial phase in Cheetah Net’s expansion plan has been reached with the finalization of agreements to purchase TW & EW Services. The acquisition’s entire cost includes $800,000 of unregistered Class A common stock, priced at $1.704 per share, and a $200,000 cash payment. TW & EW will become a fully owned subsidiary of Cheetah Net as part of the agreement. This acquisition is expected to enhance the company’s position in the logistics sector by leveraging TW & EW’s extensive experience in labor and logistics support services.
Strategic Alignment with Business Transformation
Since the second quarter of 2024, Cheetah Net has been undergoing a major transformation. Moving away from its previous focus on parallel-import vehicles, which had been adversely affected by macroeconomic conditions in China, the company is now concentrating on logistics and warehousing services. This shift capitalizes on growing international trade flows between China and the U.S., aligning CTNT with more sustainable market opportunities.
Expanding Operations and Future Growth Prospects
In addition to the acquisition, Cheetah Net recently relocated its headquarters to Irvine, California. This move places the company in close proximity to the key ports of Los Angeles and Long Beach, enhancing operational efficiency and management focus. While immediate results from these strategic initiatives may take time to materialize, the acquisition of TW & EW Services positions CTNT for substantial growth in the logistics and warehousing industry in the coming quarters.
