Hitek Announces Entry into Share Purchase Agreement to Acquire an Advertising and Digital Marketing Company

Rhea-AI Summary

Hitek (Nasdaq: HKIT) has entered into a Share Purchase Agreement dated August 3, 2026 with seller MAI THỊ MỸ ÚT and other parties to acquire all issued and outstanding shares of Ju Fu Limited, a British Virgin Islands company.

Ju Fu, via wholly owned units Fourth Coco Technology Limited and Beijing Fourth Coco Technology, runs an advertising and digital marketing business under the “Beijing Fourth Coco” brand, offering media planning and buying, campaign management, performance marketing, data analytics and technology support.

The aggregate purchase price is US$20,000,000, comprising up to US$14,000,000 in cash (US$11,000,000 payable at two closings and up to US$3,000,000 deferred subject to performance targets) and 4,000,000 Hitek Class A ordinary shares. These shares are subject to performance-based lock-up, release, forfeiture, cancellation and sale-proceeds limits under the SPA. According to Hitek, the deal supports expansion into new business segments and is expected to close in two stages, with the first closing targeted on or around August 11, 2026, subject to customary conditions.

Positive

• Total acquisition price US$20,000,000 for Ju Fu Limited
• Cash component up to US$14,000,000, including US$11,000,000 at closings
• Deferred cash up to US$3,000,000 tied to performance targets
• Expansion into advertising and digital marketing via Beijing Fourth Coco brand

Negative

• Equity issuance 4,000,000 new Class A ordinary shares for consideration
• Contingent structure deferred cash and performance-based share terms add execution risk
• Two-stage closing with customary conditions may delay or affect completion

Market reaction after advertising company acquisition: HKIT -14.28%

-14.28% $2.70 1.9x vol

15m delay

-14.28% Vs previous close

$2.70 Last Price

$2.35 $3.94 Day Range

$24.59M Market Cap

1.9x Rel. Volume

Following this news, HKIT has declined 14.28%, reflecting a significant negative market reaction. Our momentum scanner has triggered 25 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $2.70. Trading volume is above average at 1.9x the average, suggesting increased trading activity.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

Recent insider records show 171143 shares sold versus 41 bought. That platform signal adds governanc...

Analysis

Recent insider records show 171143 shares sold versus 41 bought. That platform signal adds governance context to the acquisition; investors can monitor the two-stage closing, performance targets, and share-release restrictions as execution risks.

Key Figures

SPA signing date: August 3, 2026 Aggregate purchase price: US$20,000,000 Cash consideration: Up to US$14,000,000 +5 more

8 metrics

SPA signing date August 3, 2026 Share Purchase Agreement with the Seller and other parties

Aggregate purchase price US$20,000,000 Acquisition of Ju Fu Limited

Cash consideration Up to US$14,000,000 Part of aggregate purchase price

Cash payable at closings US$11,000,000 Payable at the two closings

Deferred cash consideration Up to US$3,000,000 Subject to specified performance targets

Consideration shares 4,000,000 Class A ordinary shares Part of aggregate purchase price

Closing structure Two closings Transaction expected to close in stages

Expected first closing August 11, 2026 Expected date stated in the SPA announcement

Historical Context

5 past events · Latest: Jul 01 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 01	Reverse split	Neutral	-23.8%	1-for-25 reverse split preceded a reported -23.84% 24-hour share-price reaction.
Jun 02	Registered offering	Negative	-90.6%	$8.0 million registered direct offering preceded a reported -90.58% 24-hour reaction.
May 26	Reverse split	Neutral	-23.2%	1-for-3 reverse split preceded a reported -23.23% 24-hour share-price reaction.
Apr 24	Earnings results	Positive	-1.0%	Fiscal 2025 net income replaced a prior-year loss, followed by a reported -1% reaction.
Apr 01	Share consolidation	Neutral	-15.8%	50-for-1 share consolidation preceded a reported -15.83% 24-hour reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

HKIT recorded negative 24-hour reactions after all five selected historical news events, including its positive fiscal 2025 results.

Key Terms

share purchase agreement, deferred cash consideration, performance-based lock-up

3 terms

share purchase agreement financial

"entered into a Share Purchase Agreement (the "SPA")"

A share purchase agreement is a written contract that outlines the terms and conditions for buying and selling shares of a company. It specifies details like the price, number of shares, and any special conditions, ensuring both buyer and seller agree on the transaction. For investors, it provides clarity and legal protection, making sure the purchase is clear and enforceable.

deferred cash consideration financial

"up to US$3,000,000 in deferred cash consideration"

Cash that is agreed as part of a merger, acquisition, or sale but is paid at a later date rather than at closing, often subject to conditions such as performance targets, regulatory approvals, or other milestones. It shifts some payment risk into the future, like agreeing to pay the rest of a price only if the product hits sales goals. For investors, it affects expected cash flows, reported liabilities, and how certain the deal’s value really is.

performance-based lock-up financial

"subject to the performance-based lock-up, release, forfeiture"

A performance-based lock-up is a contractual restriction that prevents insiders, early investors, or employees from selling shares until the company meets specific performance targets, such as revenue milestones, earnings, stock price levels, or regulatory approvals. It matters to investors because it affects when additional shares may enter the market and ties insiders’ ability to sell to company outcomes, similar to holding a coupon that only becomes spendable when certain conditions are met.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

XIAMEN, China, August 3, 2026 /PRNewswire/ -- Hitek Global Inc. (Nasdaq: HKIT) (the "Company" or "Hitek"), an information technology consulting and solutions provider, today announced that, on August 3, 2026, it entered into a Share Purchase Agreement (the "SPA") with MAI THỊ MỸ ÚT (the "Seller") and certain other parties, pursuant to which Hitek will acquire from the Seller all of the issued and outstanding shares of Ju Fu Limited, a business company incorporated in the British Virgin Islands ("Ju Fu").

Ju Fu, through its wholly owned subsidiaries, Fourth Coco Technology Limited and Beijing Fourth Coco Technology Co., Ltd. (北京四个椰子信息技术有限公司), operates an advertising and digital marketing business under the "Beijing Fourth Coco" (四个椰子) brand, providing media planning and buying, advertising campaign management, performance marketing, data analytics, technology support and related services.

Under the SPA, the aggregate purchase price is US$20,000,000, consisting of (i) aggregate cash consideration of up to US$14,000,000, comprising US$11,000,000 payable at the two closings and up to US$3,000,000 in deferred cash consideration subject to the achievement of specified performance targets, and (ii) 4,000,000 Class A ordinary shares of the Company. Such consideration shares will be subject to the performance-based lock-up, release, forfeiture, cancellation and sale-proceeds limitations set forth in the SPA.

Ms. Huang Xiaoyang, Chief Executive Officer of Hitek, stated, "We are delighted to enter into this SPA in connection with the acquisition of Ju Fu. This acquisition will help the Company expand into new business segments."

The transaction is expected to close in two stages, subject to the satisfaction or waiver of customary closing conditions. The first closing is expected to occur on or around August 11, 2026.

About Hitek Global Inc.

Hitek Global Inc., headquartered in Xiamen, China, is an information technology ("IT") consulting and solutions service provider in China. The Company operates two lines of business: (1) services for small and medium-sized businesses, consisting of Anti-Counterfeiting Tax Control System ("ACTCS") tax devices, ACTCS services, and IT services, and (2) services for large businesses, consisting of hardware sales and software sales. The Company's vision is to become a one-stop destination for comprehensive IT consulting and other business consulting services in China. For more information, please visit the Company's website at http://www.xmhitek.com/.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.

View original content:https://www.prnewswire.com/news-releases/hitek-announces-entry-into-share-purchase-agreement-to-acquire-an-advertising-and-digital-marketing-company-302841008.html

SOURCE Hitek Global Inc.

FAQ

What company is Hitek (NASDAQ: HKIT) acquiring under the August 2026 share purchase agreement?

Hitek is acquiring all issued and outstanding shares of Ju Fu Limited. According to Hitek, Ju Fu owns subsidiaries that operate the “Beijing Fourth Coco” advertising and digital marketing business, providing media planning, campaign management, performance marketing and data analytics services.

What is the total purchase price Hitek (HKIT) will pay to acquire Ju Fu Limited?

Hitek agreed to pay an aggregate purchase price of US$20,000,000. According to Hitek, this includes up to US$14,000,000 in cash and 4,000,000 Class A ordinary shares, combining immediate and performance-linked consideration components for the Ju Fu acquisition.

How is the cash consideration structured in Hitek’s acquisition of Ju Fu Limited (HKIT)?

The cash consideration is up to US$14,000,000. According to Hitek, US$11,000,000 will be paid at two closings, while up to US$3,000,000 is deferred and contingent on Ju Fu meeting specified performance targets under the SPA.

How many Hitek (HKIT) shares will be issued in the Ju Fu acquisition and are there lock-up terms?

Hitek will issue 4,000,000 Class A ordinary shares as part of the consideration. According to Hitek, these shares are subject to performance-based lock-up, release, forfeiture, cancellation and sale-proceeds limitations detailed in the Share Purchase Agreement.

When is the first closing of Hitek’s acquisition of Ju Fu Limited (HKIT) expected?

The first closing is expected on or around August 11, 2026. According to Hitek, the deal will close in two stages, and each closing remains subject to the satisfaction or waiver of customary closing conditions in the SPA.

What new business segment does the Ju Fu acquisition add to Hitek (HKIT)?

The acquisition adds an advertising and digital marketing business to Hitek. According to Hitek, Ju Fu’s Beijing Fourth Coco brand offers media planning, buying, advertising campaign management, performance marketing, data analytics and technology support services, supporting Hitek’s segment expansion.

Why did Hitek (HKIT) decide to acquire Ju Fu Limited?

Hitek stated the transaction will help it expand into new business segments. According to Hitek’s CEO, entering into the SPA for Ju Fu aligns with the company’s strategy to broaden its offerings beyond existing information technology consulting and solutions services.