Hitek Announces Entry into Share Purchase Agreement to Acquire an Advertising and Digital Marketing Company
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.
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
Details
Market reaction after advertising company acquisition: HKIT -9.24% in the Aug 3 session
In the Aug 3 session, HKIT declined 9.24%, reflecting a notable negative market reaction. Argus tracked a peak move of +4.0% during that session. Argus tracked a trough of -36.7% from its starting point during tracking. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- 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
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1-for-25 reverse split preceded a reported -23.84% 24-hour share-price reaction.
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$8.0 million registered direct offering preceded a reported -90.58% 24-hour reaction.
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1-for-3 reverse split preceded a reported -23.23% 24-hour share-price reaction.
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Fiscal 2025 net income replaced a prior-year loss, followed by a reported -1% reaction.
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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.
Key Terms
deferred cash consideration financial
performance-based lock-up financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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.
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SOURCE Hitek Global Inc.
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