Massimo Group (NASDAQ: MAMO) has terminated its previously announced proposed acquisition of FST Development Company Limited, originally disclosed on February 3, 2026, and secured up to $4 million in funding from its controlling shareholder to support internal security technology development.

The Garland, Texas-based powersports vehicle manufacturer said the acquisition, which had contemplated satisfying part or all of the consideration through the issuance of company shares, will no longer proceed. The company cited progress in its internal development programs as a factor in the decision.

The $4 million in controlling shareholder funding is intended to support product development, testing, pilot deployments and commercialization efforts across intelligent patrol systems, autonomous security technologies and AI-powered monitoring platforms.

Chief Executive Officer Quenton Petersen said in a statement: "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 company said it already maintains a nationwide sales network, dealer relationships and distribution channels in the United States, which it plans to use as a foundation for expanding into advanced security technologies and autonomous mobility solutions.