- TROOPS, Inc. (TROO, Financial) to acquire a 49% stake in Taiwan-based WORK, Inc.
- Transaction includes a put option for complete ownership and is to be financed through convertible notes.
- Strategic expansion into Asia's flexible workspace market with plans for a 7,000 sq ft co-working space in Hong Kong.
TROOPS, Inc. (NASDAQ: TROO) has announced plans for its subsidiary, Giant Connection Limited, to acquire a 49% stake in WORK, Inc., a co-working space operator based in Taiwan. The acquisition agreement includes a put option that allows for the purchase of the remaining 51% ownership in the future. This acquisition marks a significant strategic move by TROOPS into the Asian flexible workspace market.
The acquisition will be financed through convertible notes linked to TROOPS shares, priced at 80% of the lower of the pre-signing closing price or the 60-day average. This financing strategy could potentially lead to shareholder dilution due to the 20% discount pricing.
As part of the acquisition terms, TROOPS is obligated to develop a 7,000 square feet co-working space in Hong Kong and create a dedicated mobile application. The transaction is contingent upon due diligence processes and securing necessary regulatory approvals from NASDAQ and the SEC. No significant adverse changes should occur for the transaction to proceed.
This acquisition allows TROOPS to expand its geographical presence by leveraging WORK, Inc.'s operations in Taiwan while establishing a foothold in Hong Kong's growing co-working space market. The strategic entry into these markets exemplifies TROOPS' commitment to diversifying and strengthening its portfolio.
