Ability Inc. (NASDAQ: ABIL) rose sharply Wednesday, after the company announced plans to acquire a company that licences Ultimate Interception for $1 million in Ability stock plus warrants.
The Tel Aviv-based company provides innovative tactical communications intelligence solutions.
A news release issued Tuesday announced that, subject to the terms and conditions of a Stock Purchase Agreement, including the Company’s satisfactory due diligence, the Company has entered into an agreement to acquire the supplier that develops and licenses to the Company on an exclusive basis Ultimate Interception, the Company’s principal cellular interception system.
ABIL has agreed to purchase all the issued and outstanding shares of the supplier and in consideration, and to issue 354,609 ordinary shares of the Company, which is the equivalent to $1 million, based on Tuesday’s closing share price
In addition, the Company agreed to issue to the Seller three warrants, each warrant exercisable for 100,000 ordinary shares of the Company at an exercise price of $3.81, with the first warrant exercisable for 30 days from the first anniversary of the closing date, the second warrant exercisable for 30 days from the second anniversary of the closing date, and the third warrant exercisable for 30 days from the third anniversary of the closing date.
ACSI provides advanced interception, geolocation and cyber intelligence tools used by security and intelligence agencies, military forces, law enforcement and homeland security agencies worldwide. ACSI has sold to governments and government agencies in over 50 countries.
Its shares jetted higher $1.30, or 46%, to $4.12 in Wednesday’s first hour of trade.
