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viewAuMake International Ltd

AuMake International snaps up Kiwi Buy to enhance Chinese targeted sales strategy

All Kiwi Buy stores are operating profitably post labour and occupancy expenses.

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Consideration will be made in shares and an inventory reimbursement

AuMake International Ltd's (ASX:AU8) shares are trading 8% higher at $0.27 in the first 40 minutes of the session, with 200,000 changing hands.

AuMake has pounced on Kiwi Buy, where preliminary financial due diligence indicates sales of $18 million over the last 12 months.

Kiwi Buy has been operating since 2014 with five retail stores in Sydney.

Two stores are located in the Chinese tourist centric CBD, being at World Square and Haymarket, with the other three in the densely daigou populated areas of Kingsford, Chatswood and Ultimo.

Terms of the deal include $300,000 in ordinary shares of AuMake at $0.25, and reimbursement up to $500,000 of inventory subject to stock-take.

AuMake connects Australian suppliers directly with daigou and Chinese tourists.

Daigou literally translated means "buying on behalf of".

Rationale of the deal

AuMake has identified opportunities to improve the gross margin performance of Kiwi Buy through the implementation of AuMake processes to increase sales of higher margin products, including its own brands.

The acquisition also enhances AuMake’s online capability due to the addition of Kiwi Buy’s 38,000-member database.

Quick facts: AuMake International Ltd

Price: 0.11 AUD

ASX:AU8
Market: ASX
Market Cap: $33.28 m
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