FiEE Inc. (NASDAQ:FIEE) saw its shares tumble 26% in premarket trading on Wednesday after revealing it has acquired Japanese technology company Houren-Geiju Kabushikikaisha in a $3.5 million deal.
The U.S.-listed tech firm — which blends IoT, connectivity solutions, and AI into its brand management platform — finalized the transaction on November 30, 2025. The agreement grants FiEE full ownership of Houren-Geiju’s equity, along with its software rights and intellectual property portfolio.
Houren-Geiju focuses on AI- and blockchain-based digital authentication for art collections. The Tokyo-based company currently owns five software copyrights and has eight additional innovations advancing through the patent application stage.
FiEE intends to fold Houren-Geiju’s authentication systems into its existing custom software development and MCN digital service offerings. Management believes the combination will allow FiEE to introduce new blockchain-enabled verification products.
“We are thrilled to integrate Houren-Geiju’s cutting-edge authentication and blockchain technologies into our business, thereby broadening our revenue streams, optimising our brand solutions, and having the potential to reach extensive high-quality customers,” said Rafael Li, Chief Executive Officer of FiEE.
Despite the upbeat commentary from leadership, the market’s initial reaction has been sharply negative, with the stock’s steep decline signaling investor concern over the acquisition.