LOI Announcement Perks Up Shares Of This AI Micro Cap

By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, March 5, 2025

Robot as a Service (RaaS) is a business model where companies lease or subscribe to robotic solutions instead of purchasing them outright. While this approach requires high upfront costs for the provider, it offers them long-term financial benefits through a recurring revenue model.

Pressing forward with this business model in a big way, Nightfood Holdings, Inc. (OTCQB: NGTF), a company focused on AI-powered automation solutions for the hospitality industry, announced this morning the signing of a Letter of Intent (LOI) to acquire Skytech Automated Solutions Inc., a Delaware-based innovator in robotic automation and smart service technologies.

This acquisition marks a pivotal milestone in Nightfood’s aggressive expansion strategy, reinforcing its leadership in the booming Robot-as-a-Service (RaaS) sector. By integrating Skytech’s cutting-edge technology into its portfolio, Nightfood is positioning itself to scale automation solutions across the hospitality landscape, fueling operational efficiencies, cost savings, and enhanced service capabilities.

Under the terms of the LOI, Nightfood Holdings will acquire 100% of Skytech’s equity interests in a deal valued at approximately $6.2 million, structured under specific deal terms and revenue milestones.

“With this acquisition, we are executing our vision of embedding AI-powered robotics into high-demand hospitality applications,” said Jamie Steigerwald, Chairman of Nightfood Holdings. “Skytech’s innovative technology aligns perfectly with our growth strategy, allowing us to scale automation services across hotels, food service, and senior care communities. Our mission remains clear: build long-term shareholder value while solidifying our leadership in AI-driven automation.”

Nightfood Holdings will now enter a 30-day due diligence period, during which it will evaluate Skytech’s financials, contracts, intellectual property, and operational synergies. A definitive agreement is expected to be finalized in Q2 2025, pending to customary closing conditions.

Despite wobbly broader market conditions, shares of NGTF were trading higher by 4% in mid-morning trading at $0.01.

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