Meiwu Technology's subsidiary is acquiring Xiamen Hemeitong, a functional skincare distributor, for approximately $35 million. This acquisition is expected to boost the adoption of Meiwu's AI-powered MOBO App by leveraging Xiamen Hemeitong's extensive distribution network, leading to a significant after-hours stock rally for WNW.
Meiwu Technology (WNW) announced its subsidiary's acquisition of Xiamen Hemeitong Commercial Co. for $35 million. This acquisition is significant because Xiamen Hemeitong possesses a vast distribution network of 1,600 brand owners, retailers, and beauty salons across China, which Meiwu plans to leverage to accelerate the adoption of its AI-powered MOBO App. The market reacted positively, with WNW shares soaring 48% after hours, indicating investor optimism about the strategic synergy and potential for growth in Meiwu's functional skincare and AI platform segments. This move could provide a much-needed boost to the company, which has seen its stock fall 98.56% over the past year and is currently near its 52-week low, offering a potential turnaround opportunity for traders.