FIRST GLOBAL ANNOUNCES PROPOSED SALE OF ITS USA SUBSIDIARY
OCTOBER 3, 2020 (YorkPedia Editorial):- Toronto, Oct 3, 2020 (Issuewire.com) – First Global Data Limited (“First Global” or the “Company”) is pleased to announce that it has entered into a share purchase agreement (the “Agreement”) for the sale of its USA subsidiary to MoneyMoov Payments Inc. (“MoneyMoov”), an arm’s length party to the Company.
Pursuant to the Agreement, First Global intends to sell all of the issued and outstanding securities (the “Purchased Shares”) in the capital of its wholly-owned subsidiary, First Global Money Inc. USA (“FGMI”), to MoneyMoov.In consideration for the sale of the Purchased Shares to MoneyMoov, First Global will receive the equivalent of CDN $13.5 million in value (the “Purchase Price”).
The Purchase Price will be comprised of: (a) $3.5 million will be satisfied through the issuance 10 million common shares (the “Consideration Shares”) in the capital of MoneyMoov at a deemed price of $0.35 per Consideration Share and (b) the assumption by MoneyMoov of an aggregate of $10 million of First Global liabilities (the “Assumed Liabilities”).
First Global has not yet determined whether the Consideration Shares will be held by the company or whether they will be distributed to the shareholders of the Company on a proportional basis.
As a condition of closing, MoneyMoov requires the holders of the Assumed Liabilities to enter into agreements whereby the holders will agree to accept Class B Special Shares in the capital of MoneyMoov in exchange for the cancellation of the Assumed Liabilities.
In addition to the conversion of the Assumed Liabilities, closing of the proposed sale of the Purchased Shares is conditional on the receipt of applicable shareholder and/or regulatory approvals.
Mr. Andre Itwaru, CEO of MoneyMoov, says, “We believe that this is an equitable arrangement for both First Global and MoneyMoov. The intention and objective is to provide the shareholders of First Global with value and an opportunity for liquidity in the future, to provide the Series G Debenture holders and others with an opportunity to recover their investments over time, and at the same time to provide MoneyMoov with valuable assets it will benefit from to execute its growth objectives”.
Mr. Krishnasamy Parthiban, a Director of First Global says, “The agreement with MoneyMoov is key as it provides our shareholders and certain debtholders with value, helps to clean up the balance sheet as we continue the efforts to turn the company around and to resume trading”.
About First Global Data Ltd. (www.firstglobaldata.com) First Global is an international financial services technology (“FINTECH”) company. The Company’s two main lines of business are mobile payments and cross border payments. First Global’s+ proprietary leading-edge technology enables the convergence of compliant domestic and cross border payments, shopping, Peer to Peer (“P2P”), Business to Consumer (“B2C”), and Business to Business (“B2B”) payments. First Global enables its strategic partners and clients around the world with our leading-edge financial services technology platform.
About MoneyMoov Payments Inc. (www.moneymoov.com) MoneyMoov is a financial services technology (‘FINTECH’) company that focuses on providing frictionless innovative, user friendly, and compliant electronic payment services for both domestic and international transactions.