Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) today announced the successful completion of its acquisition of Edward Transit Express Group Inc. (the “Acquisition”), a California-based global inbound non-vessel operating common carrier providing ocean and air transportation services (“Edward”). The Acquisition marks a pivotal achievement in Cheetah’s strategic expansion plans.
Tony Liu, Chairman and CEO, commented, “[t]he Acquisition positions us as a more visible competitor in our industry. This strategic move aligns seamlessly with our broader goals, strengthens our logistical capabilities, and enables us to provide end-to-end supply chain solutions. We are committed to leveraging the Acquisition by reducing transaction costs, creating new revenue streams, and becoming a one-stop-shop for traders within the global supply chain sector.”
Total consideration for the Acquisition was $1.5 million. The Company paid Edward’s sole shareholder $300,000 in cash and issued 1,272,329 shares of the Company’s unregistered Class A common stock having a market value of $1.2 million. Edward will operate as a wholly-owned subsidiary of Cheetah and Franky Zhang, the current general manager of Edward, will become a Cheetah employee and assume the position of chief executive officer of Edward.
In 2023, Cheetah extensively used Edward’s services, contributing approximately $0.25 million to its revenue. In 2022, Edward reported a total revenue of $0.48 million. Cheetah estimates that Edward’s revenue for 2023 ranged between $0.5 million and $0.53 million. With the Acquisition, the Company expects to significantly reduce its operating costs and to generate warehousing and logistics service revenues from current Edward customers as well as from new customer relationships that are developed by Cheetah.
