Item 2.01 Completion of Acquisition or Disposition of Assets.
Transportation and Logistics Systems, Inc. (OTC:TLSS), ("TLSS", or the
"Company"), an eCommerce fulfillment service provider, on January 15, 2021,
through a newly-formed, wholly-owned, subsidiary, Shyp FX, Inc., simultaneously
executed an asset purchase agreement ("APA") and closed a transaction to acquire
substantially all of the assets and certain liabilities of Double D Trucking,
Inc., a northern New Jersey-based logistics provider specializing in servicing
Federal Express ("FedEx") over the past 25 years ("DDTI"). DDTI's annual
revenues in 2020 exceeded $1 million. The purchase price is $100,000 of cash and
a promissory note of $400,000. The principal assets involved in the acquisition
are vehicles for cargo transport, system equipment for vehicle tracking and
navigation of vehicles, and delivery route rights together with assumption of
associated customer relationships.
On January 15, 2021, the Company's wholly-owned subsidiary, TLSS Acquisition,
Inc., entered into an agreement to extend the closing date of the acquisition of
substantially all of the assets of Cougar Express, Inc. ("Cougar Express"), from
January 15, 2021 until February 16, 2021. Such extension is to provide the
Company additional time to procure the financing necessary to complete the
transaction.
TLSS, through its wholly-owned operating subsidiaries, Shypdirect, LLC and Shyp
FX, Inc., operates as a logistics and transportation company specializing in
eCommerce fulfillment through last mile, two-person home delivery, mid-mile and
line-haul services for predominantly online retailers.
The acquisition of DDTI will make the Company an approved contracted service
provider of FedEx which, it believes, fits in well with its current geographic
coverage area and may lead to additional expansion opportunities within the
FedEx network. The Company believes that the acquisition of DDTI, along with the
proposed acquisition of Cougar Express, demonstrates that the Company is
beginning to aggressively resume its growth strategy,
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