Massimo secures $4 million from controlling shareholder, scraps FST acquisition

GARLAND, Texas, June 24, 2026 /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) ("Massimo" or the "Company"), a manufacturer and distributor of powersports vehicles, UTVs, ATVs and innovative mobility solutions, today announced that it has terminated its previously announced proposed acquisition of FST Development Company Limited ("FST"), originally disclosed on February 3, 2026.

Under the previously contemplated transaction structure, a portion or all of the acquisition consideration could have been satisfied through the issuance of Company shares. Following a comprehensive review of the Company's strategic priorities, capital allocation plans and recent internal development progress, the Company has elected not to proceed with the proposed acquisition and will no longer pursue the previously contemplated stock-based acquisition structure.

Over the past several months, the Company's internal development programs and strategic development partnerships have achieved significant progress across multiple advanced security technology initiatives, including intelligent patrol systems, autonomous patrol vehicle platforms, drone-assisted security technologies, AI-powered command and monitoring platforms, and related intelligent security solutions. These developments have strengthened management's confidence in the Company's internal technology roadmap and reduced the need to pursue external acquisitions to obtain similar capabilities.

To support the Company's disciplined capital allocation strategy while preserving operating flexibility, the Company's controlling shareholder made the decision to provide up to US$4 million in funding support to accelerate the Company's internal development programs focused on intelligent patrol systems, autonomous security technologies, AI-powered monitoring platforms and related next-generation security solutions.

The funding is expected to support product development, testing, optimization, pilot deployments, commercialization efforts and continued technology advancement across the Company's intelligent security platform initiatives.

Quenton Petersen, Chief Executive Officer of Massimo Group, commented:

"Our internal development initiatives have advanced significantly over the past several months. After evaluating multiple strategic alternatives, we believe focusing on our existing intelligent patrol and advanced security technology programs is the best path forward for Massimo and its shareholders.

The commitment from our controlling shareholder reflects confidence in our technology roadmap, development progress and long-term growth opportunities. With this support, we will focus on product development, commercialization and market expansion while maintaining disciplined capital allocation."

Importantly, Massimo is not starting from zero. The Company already has an established nationwide sales network, dealer relationships, distribution channels, operational infrastructure, and manufacturing capabilities across the United States. With its commercial platform already in place, management believes the most efficient path forward is to enhance and expand that platform through advanced security technologies, intelligent patrol systems, autonomous mobility solutions, and AI-enabled security applications.