By Kelly Cloonan
Shares of Robo.ai declined after the technology company disclosed plans to acquire QC Capital for $60 million in newly issued Class B ordinary shares of Robo.ai.
The stock was recently down 20% at $4.38 on Tuesday. Shares are down 28% year to date.
QC Capital is an artificial intelligence-driven technology holding and venture-building platform, with capabilities across technology development, venture building and industrial investment.
Robo.ai said the deal will strengthen its capabilities in technology company sourcing, capital allocation, venture incubation, cross-border mergers and acquisitions, post-investment operations and global commercialization.
After the closing the transaction, Robo.ai plans to make QC Capital its platform for strategic holdings, venture building, investment development and data asset growth to support its expansion across AI, robotics, digital infrastructure and smart cities, among other areas.
Robo.ai said the consideration shares will be subject to a vesting and release schedule of up to eight years. The company expects the deal to close within 30 business days.
Write to Kelly Cloonan at kelly.cloonan@wsj.com