- Harris Technology’s purchase of U.S. drone accessories store Fstop Labs has been called off today
- Harris announced the $2 million purchase in June, but the seller pulled out today “based on the current agreement”
- The falling through of the purchase delays Harris’ planned expansion into the U.S. market
- Harris shares are unchanged today, continuing to trade for 1.2 cents in a $2.22 million market cap.
Harris Technology told the market today that the purchase of online U.S. retailer Fstop Labs has been called off.
The purchase was initially announced on June 14, and marked Harris’ first step to expanding into the U.S. market. Harris planned to purchase Fstop Labs for up to $2 million; $1.2 million in cash and $800,000 in Harris shares.
However, the company announced today the Fstop Labs has pulled out of the purchase. According to Harris, the seller has decided to call things off “based on the current agreement”.
While Harris and Fstop are discussing an alternative agreement, Harris management told investors it can’t give any assurance that another agreement will be signed.
Harris says it has not incurred any costs relating to the initial agreement so far.
Harris Technology is an online seller of tech products, ranging from laptops to printers to calculators. The company was set to add drone accessories to its product range and hit the U.S. market by taking over Fstop Labs.
Fstop Labs is a fully online retailer that specialises drone accessories. The company uses the U.S. Amazon platform and eBay to sell products including landing gear, battery chargers, mini-electric motors, and propellor guard protectors.
The major brands sold by Fstop Labs include Spark, Mavic and DJI.
Harris currently owns several online shopping sites, including ht.com.au, Anyware and Audion-mm.
Up until last week, Harris also owned WowBaby, but sold it for $68,000 on Thursday, July 18. Harris said the baby products store did not align with the company’s strategic direction.
With the falling apart of the Fstop Labs purchase, however, Harris’ planned expansion into the U.S. market has been delayed. The company is yet to announce plans to find other ways to expand into the U.S.
Harris shares are unchanged today, continuing to trade for 1.2 cents in a $2.22 million market cap.