Armlogi to acquire Leopard Transnational to boost e-commerce

WALNUT, CA - Armlogi Holding Corp. (NASDAQ:BTOC), a prominent U.S. warehousing and logistics service provider currently valued at $71 million, has announced its intention to acquire Leopard Transnational Inc., aiming to expand its warehouse network and enhance its e-commerce fulfillment capabilities. The company, which InvestingPro analysis shows is trading near its 52-week low of $1.58, has seen its stock decline over 60% in the past six months. This strategic move is expected to introduce an additional 360,000 square feet of storage space into Armlogi’s portfolio and bolster its presence in high-growth logistics segments.

The non-binding Letter of Intent outlines Armlogi’s plan to purchase 100% of Leopard’s issued and outstanding capital stock, with the consideration involving Armlogi common stock and potential earn-out payments contingent on Leopard’s performance targets. This move comes as the company manages a significant debt burden, with a debt-to-equity ratio of 3.71 and total debt of $123 million as of the latest quarter. Leopard, with over two decades of logistics experience, specializes in cross-border e-commerce fulfillment and offers a suite of services including customs clearance, inventory management, and last-mile delivery, notably for Amazon sellers.

Armlogi’s acquisition of Leopard is designed to strengthen its competitive edge in the market, particularly in the areas of cross-border e-commerce fulfillment for international sellers, specialized handling for various product categories, and high-volume fulfillment for major online marketplaces. According to InvestingPro data, analysts project 28% revenue growth for the company this year, suggesting potential synergies from the acquisition could accelerate growth. Get access to 14 additional exclusive ProTips and comprehensive financial metrics with InvestingPro. The integration of Leopard’s proprietary technology system is anticipated to enhance service capabilities and provide immediate value to Armlogi’s clients.

Aidy Chou, Chairman and CEO of Armlogi, stated that the acquisition aligns with the company’s growth strategy and is expected to solidify its position in the rapidly expanding e-commerce fulfillment sector. Despite acknowledging the uncertainties in international trade policies, Chou expressed readiness to adapt the company’s strategy to the evolving landscape.

The successful completion of the transaction is contingent upon due diligence, the negotiation and execution of a definitive agreement, and the receipt of necessary approvals. Both companies anticipate finalizing the agreement within the next 60-90 days, with plans for a collaborative transition and integration process. Armlogi also intends to retain key Leopard personnel to maintain operational continuity and customer relationships.

This announcement is based on a press release statement and contains forward-looking statements regarding the potential benefits and completion of the acquisition. The actual outcome of these plans may vary based on various factors and market conditions. Based on InvestingPro’s Fair Value analysis, Armlogi appears undervalued at current levels, though investors should note the company’s weak financial health score of 1.28 out of 5 and negative EBITDA of -$8.62 million in the last twelve months.

In other recent news, Armlogi Holding Corp. announced the outcomes of its annual stockholders’ meeting. The meeting resulted in the election of five directors, including Aidy Chou, Tong Wu, Kwong Sang Liu, Russel Morgan, and Florence Ng, who will serve until the 2025 annual meeting. The election saw strong support, with each director receiving over 27 million votes. Additionally, stockholders ratified ZH CPA, LLC as the company’s independent auditor for the fiscal year ending June 30, 2025, with 27,538,253 votes in favor. Notably, there were no broker non-votes regarding the auditor’s ratification. However, during the director elections, there were 531,123 broker non-votes. This development was formally recorded in an 8-K filing with the Securities and Exchange Commission. The filing aims to keep investors informed about the company’s corporate governance activities.

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