KBS Fashion Group, a leading fully-integrated casual menswear company in China, is taking over Tribe Wearables, a private smart clothing technology company, located in Komotini, Greece. KBS Fashion has executed a non-binding Letter of Intent (LOI) in this direction. According to the LOI, KBS will first acquire 20 per cent of equity interests in Tribe.
KBS will first acquire 20 per cent of equity interests in Tribe based on the valuation of $5,000,000 pre money by issuing certain amount of shares KBS common stock to the shareholders of Tribe. The Board of Directors of Tribe will have at least one member nominated by KBS once the acquisition is completed. KBS is also entitled to acquire additional equity interests in Tribe by placing certain order of Tribe products at the required price and amount under the LOI. In addition, KBS will have the right of first refusal on participating in Tribe’s future capital raise.
Keyan Yan, Chief Executive Officer of the KBS Fashion Group, commented, “We are very excited to invest in Tribe, one of the most innovative smart clothing technology companies internationally. We conceive that this investment will enhance and expand significantly our clients network and products offering. The smart clothing market is expected to surpass $2 tr in size in 2019 and KBS is well positioned to capture a part of this market in the wider region. We believe KBS will be the preferred manufacturer and exclusive distributor of Tribe products in mainland China and Taiwan.”
“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,” concluded Yan. The transaction remains subject to completion of due diligence reviews, customary definitive documentation and approval by the respective KBS and Tribe Boards of Directors.