China Natural Resources announced a non‑binding Letter of Intent to acquire 100% of a Feishang Group subsidiary that holds a 59.79% equity interest in HooRii Technology (HK) Limited, a Hong Kong‑based physical AI developer founded in 2021. The deal values the stake at $37‑$40 million, payable in a mix of cash and stock.
The transaction is a related‑party deal, as Feishang Group is CHNR’s principal shareholder. A special committee of independent directors has been convened to review the terms, and the LOI is subject to due diligence, regulatory approvals and customary closing conditions.
HooRii has built an IoT‑enabled AI platform and launched its flagship product, ClawStage, which attracted more than 10,000 seed users in its first month after launch. The company has raised over $7 million in financing and is positioned to capture a growing physical‑AI market that Hong Kong is actively promoting.
CHNR’s core mining business has struggled, reporting no revenue growth over the past three years and sustaining losses, with an EPS of –$0.50 for the last twelve months. The company’s market capitalization is roughly $4.15 million, making the $37‑$40 million acquisition value more than nine times its current market cap and underscoring the magnitude of the strategic shift.
Management emphasized the strategic importance of the deal. CEO Wong Wah On Edward said the acquisition would accelerate CHNR’s transformation, allowing the company to apply HooRii’s technology to its mining operations and to tap into the high‑growth physical‑AI ecosystem. CEO Albert Licheng Zhu highlighted HooRii’s rapid rise from a start‑up to a leader in physical AI.
The announcement generated significant investor interest, reflecting confidence in the strategic pivot, despite the company’s current financial fragility and the inherent risks of a related‑party transaction.
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