HONG KONG, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Powell Max Limited (Nasdaq: PMAX) (the “Company” or “Powell Max”), a financial communications services provider headquartered in Hong Kong, today announced that it has commenced activities to pursue acquisitions as part of its strategy to build and grow its business operations. The Company is currently evaluating several other financial communications service companies to continue its growth and enhance its market share in the financial communications industry in Hong Kong and Asia.
Powell Max intends to acquire companies that are generating between $1.5 million and $5 million in gross annual revenue. The Company intends to retain most of the management teams of the acquired companies and to expand those teams to include additional management professionals specializing in corporate strategy and business development. The acquired companies will be allowed to operate semi-autonomously as separate business units under their respective managements, and management personnel of each unit will be under the direct supervision of the top management of the Company. By acquiring other competitors in the financial communications business, Powell Max is looking to further develop its clientele and achieve economies of scale.
“Financial communications service companies in Hong Kong are akin to financial printers and EDGAR filing agents in the United States.” Tsz Kin Wong, CEO of Powell Max stated. “We play a vital part in supporting companies that are listed in Hong Kong by providing compliance filings, financial printing and investor communications services catered to the local regulatory and compliance requirements. The Main Board of the Stock Exchange in Hong Kong has a total market capitalization of approximately $4,521 billion comprised of 2,632 listed companies, based on publicly available information as of January 10, 2025. The local demand for financial communications services is therefore still strong and trending. By pursuing acquisitions of other financial communications service companies, we aim to further expand our clientele and market presence.”
Powell Max has recently secured a standby equity line of credit with a maximum amount of $40 million, which would support Powell Max to pursuing acquisitions and other strategic partnerships.
Powell Max has not entered into any written agreements with any of the targets that it is currently evaluating. Any acquisition to be made by Powell Max is subject to, among other matters, the completion of due diligence, negotiation of definitive transaction agreements, and satisfaction of the conditions stipulated therein. There can be no assurance as to the timing, the size or the form of consideration of any acquisition, or whether such transactions will be completed at all.
Forward-Looking Statements
This press release contains certain forward-looking statements, including statements with regard to the Company’s proposed acquisitions. Words such as “will,” future,” “expects,” “believes,” and “intends,” or similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions and no assurance can be given that the proposed acquisitions discussed above will be completed within the criteria described or achieve the objectives contemplated. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations and to successfully integrate the acquired businesses, customer acceptance of the Company’s services, demand for the Company’s services, composition of the Company’s customer base, impact of competitive services and pricing, general economic conditions, and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (the “SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our most recent Registration Statement on Form F-1 and other reports and documents that we file from time to time with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
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Powell Max Limited
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