Ability Inc. (NasdaqCM:ABIL) entered into a stock purchase agreement to acquire Telcostar Pte, Ltd. for approximately $1 million on November 20, 2018. Ability Inc. and Telcostar entered into an amended and restated stock purchase agreement on January 15, 2019. In consideration, Ability Inc. issued an aggregate of 0.35 million ordinary shares to Telcostar. On closing, the existing reseller agreement will be terminated, and Telcostar will enter into a services agreement with a service provider to Telcostar. The seller will pay termination fees of $0.3 million to buyer in case of breach of agreement. The transaction is subject to the Ability Inc.'s satisfactory due diligence, entry into the Services Agreement, not less than $2000 in the bank account of Ability Inc., regulatory approval and other customary closing conditions. The transaction is expected to close on or prior to January 31, 2019. On December 21, 2018, Ability Inc. entered into an amendment to the agreement to extend the Drop Dead Date from December 21, 2018 to January 15, 2019. Gary Emmanuel of McDermott Will & Emery LLP acted as legal advisor to Ability Inc. Ability Inc. (NasdaqCM:ABIL) completed the acquisition of Telcostar Pte, Ltd. on January 15, 2019.