Purchasing an existing company as a subsidiary is a business move that can either eliminate a competitor, or further expand into a market with an already established and reputable name. Global Remote Technologies Ltd ($RGT:CNX), a provider of emerging technologies for the energy sector, is aiming to expand into a new market while adding a range of services that complements their existing portfolio – and their recent partnership does precisely that.
The Vancouver-based company has announced that they have entered into a Membership Interest Purchase Agreement, with the company’s president and director Kane Smith, for the purchase of 100% of the ownership interests in Global Remote Technologies, LLC (Global Remote US). Once the transaction is completed, Global Remote US, a Nevada Limited Liability company, will become a wholly-owned subsidiary of Global Remote Technologies.
Global Remote US provides services and technologies to the energy sector that range from project planning to development, safety and quality inspection. The company’s products and services are offered to Mexican oil companies.
“We are very pleased to announce the signing of this agreement,” said Chris Dorris, CEO of Global Remote Technologies. “The range of services and technologies offered by this new company complement our existing service and product offerings well. We expect that the acquisition will significantly increase our revenue base, as well as allow us to move full steam ahead into the Mexican market.”
Continued Growth from Global Remote Technologies
Global Remote Technologies offers remote sensor packages, acting as early warning systems that transmit the status of equipment, tanks and pipelines, from drilling and production sites in real time to a central server in order to avoid equipment failures and compliance fines.
This announcement follows a series of positive news announcements from the company. Earlier this month, the company’s common shares were listed on the Frankfurt Stock Exchange. Furthermore, this past July, Global Remote was awarded a $1,800,000 one-year service contract from Trinity Energia De Mexico S.R.L. DE C.V.
Upon acquisition of Global Remote US, Global Remote Technologies will make a significant stride toward achieving their strategic goals. The company will be poised to accommodate the needs of an international oil market, allowing them to thrive while further establishing a reputation as a go-to solutions provider for other potential international energy markets.
For more information about Global Remote Technologies, visit www.grtcse.com.
Disclosure: In the purview of Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention the fact that Equities.com, Inc. may be compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker, broker dealer, investment advisor, analyst, investment banker or underwriter. All profiles are based on information that is available to the public. The information contained herein should not be considered to be all-inclusive and is not guaranteed by Equities.com to be free from misstatement or errors. Readers are reminded to do their own due diligence when researching any companies mentioned on this website.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer