Fort Technology Acquires 50.1% of Logia USA for $125K in Shares
Fort Technology Inc. announced the acquisition of a 50.1% stake in Logia USA Inc., a provider of fuel integrity solutions for data centers, for $125,000 in common shares. The deal includes an equity rebalancing mechanism where the founder's ownership in Logia USA could increase significantly (up to 95%) based on revenue and profitability milestones, potentially diluting Fort Technology's stake. Concurrently, Fort Technology will provide Logia USA with a $2.0 million credit facility, and Logia USA will pay a $125,000 license fee to Logia Israel for exclusive North American intellectual property rights. The founder will also serve as CEO of Logia USA with an annual consulting fee and potential equity-based compensation.
Key Highlights
- Fort Technology Inc. to acquire 50.1% of Logia USA Inc. from its founder.
- Consideration for the acquisition is 132,603 common shares of Fort Technology, valued at $125,000.
- Founder's ownership in Logia USA can increase up to 95% based on revenue milestones ($50M-$250M).
- Fort Technology will provide Logia USA with a credit facility of up to $2.0 million at 6% interest.
- Logia USA will pay Logia Israel a one-time license fee of $125,000 for exclusive North American rights.
- Founder Yair Harel will serve as Logia USA CEO with an annual fee of $140,000.
- Mr. Harel is eligible for up to $2.5 million in equity-based compensation from Fort Technology.
Price Impact
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