Seems positive.
Roughly a third of the outstanding shares come back to the company (current market cap of $133 Million) plus definitely avoiding the earnout AND $40,000,000.
Should also remove uncertainty for long suffering shareholders.
Tip Ranks
Company Announcements
Quisitive Sharpens Focus on Cloud and AI
Quisitive Technology Solutions Inc. has streamlined its focus on Microsoft Cloud and AI solutions by divesting its BankCard USA unit, significantly improving its financial stance with a $35 million debt reduction and aiming for growth in AI services. The transaction not only simplifies the company’s operations but also projects a stronger balance sheet with a pro forma Adjusted EBITDA of $16.4 million. This strategic move is set to cater to increasing market demand and enhance shareholder value.
Transaction Summary
Pursuant to the terms of the Agreement, the consideration to be received by Quisitive for the sale of BankCard consists of: (i) US$40,000,000 in cash; (ii)
the return by the Acquiror of 133,095,158 common shares of Quisitive (the “Quisitive Shares”) to a wholly-owned subsidiary of Quisitive; and (iii) delivery by the former vendors of BankCard of a settlement agreement releasing Quisitive (and certain of its subsidiaries) of any and all obligations to pay a US$10,000,000 earnout payment (plus accrued interest) as provided pursuant to the terms of a stock purchase agreement between Quisitive, a wholly-owned subsidiary of Quisitive, and the former vendors of BankCard dated March 29, 2021. Following the completion of the Transaction and the return and cancellation of the Quisitive Shares by Quisitive,
a total of 272,532,461 Quisitive Shares will remain issued and outstanding.