Dogness acquires stake in pet tech firm DITC

DONGGUAN, China - Dogness (International) Corporation (NASDAQ: DOGZ), a developer and manufacturer of pet products with a market capitalization of $231.7 million, announced today it has entered into an agreement to acquire a 19.5% equity interest in Dogness Intelligent Technology Co., Ltd. (DITC). This transaction involves an exchange of Dogness’s Class A common shares and warrants for Class A common shares. According to InvestingPro data, the company has experienced significant stock volatility recently, with shares down over 62% in the past six months.

DITC, established in 2018, specializes in the research and development of Internet of Things (IoT) and app platforms for the pet industry. The company’s focus is on creating intelligent petcare devices and applications that are user-centered. These technologies enable pet owners to track their pets’ activities, collect health data, and monitor their pets remotely.

Mr. Silong Chen, CEO of Dogness, expressed his enthusiasm for the investment, citing the alignment of DITC’s innovative petcare solutions with Dogness’s strategic goals. He emphasized the growing demand for pet tech products that monitor activity and track vitals, driven by advancements in IoT, AI, and data analytics. This move is seen as a strategic effort to capitalize on the expanding petcare market. InvestingPro data shows the company’s revenue grew by 46.16% in the last twelve months, though it currently operates at a negative EBITDA of $2.31 million.

Dogness was founded in 2003 and has established itself as a provider of smart products, hygiene products, health and wellness products, and leash products for pets. The company prides itself on its fully integrated vertical supply chain and extensive research and development capabilities, which have resulted in over 200 patents and patents pending. Dogness’s products are distributed worldwide through global chain stores and distributors. Financial health indicators from InvestingPro show the company maintains a healthy current ratio of 1.78, indicating strong ability to meet short-term obligations. Subscribers can access 11 additional ProTips and comprehensive financial metrics for deeper analysis.

Further details regarding the share acquisition agreement will be available in the Form 6-K to be filed with the Securities and Exchange Commission (SEC).

This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially. Dogness cautions that these forward-looking statements are subject to risks, including the potential impact of the Covid-19 pandemic on consumer spending, the company’s ability to raise capital, and various market conditions.

In other recent news, Dogness (International) Corp has made headlines with significant corporate developments. The company announced its acquisition of a 19.5% stake in Dogness Intelligent Technology Co., Ltd. (DITC), a tech firm specializing in smart pet solutions. This strategic investment involves exchanging Dogness’s Class A common shares and warrants, allowing the company to enhance its presence in the smart pet technology market. The acquisition is part of Dogness’s broader strategy to expand its product offerings and market reach globally, as detailed in a recent SEC filing.

Additionally, Dogness has secured $6 million through a private placement deal, selling 1,200,000 Class A common shares to non-U.S. investors at $5.00 per share. Conducted under Regulation S of the Securities Act of 1933, this transaction is exempt from registration and subject to customary closing conditions. The company emphasizes that the shares are not registered under the Securities Act and are restricted from resale unless a registration or exemption applies. These recent developments highlight Dogness’s efforts to strengthen its financial position and expand its influence in the global pet industry.

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