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Kitchen Culture signs MOU to acquire Chinese AI firm
CATALIST-LISTED Kitchen Culture Holdings on Friday signed a non-binding memorandum of understanding (MOU) with Chinese firm Ooway Technology, setting out key areas of understanding for its proposed acquisition of Ooway Technology's subsidiary.
Incorporated in China, Ooway has established a platform which uses machine learning and artificial intelligence to quantify corporate behaviour as credit value. With this system, Ooway provides credit-rating services for importers and exporters in China.
As part of the strategic business review conducted by Kitchen Culture, the proposed acquisition gives the group an opportunity to explore new areas of business opportunities and to expand its footprint into other sectors, it said.
The purchase consideration has not been set yet, but could be paid for by cash or through a share issuance, it added.
Kitchen Culture said it will take the necessary steps to consider the feasibility of Ooway’s business, conduct due diligence and negotiate the terms and conditions of the definitive sale-and-purchase agreement.
But it also cautioned that the MOU is only an expression of intent by both parties and does not create any legally binding nor enforceable obligations on both sides.
Separately, it also requested that its trading halt on Monday morning be lifted.