Accretive Combination with Avenida+ Will Allow Provision of End-To-End Solutions to Financial Institutions
Significantly Enhances Revenue and Enables near Term Positive Net Cash Flow
- Further establishes Mobi724 as a leading fintech in Latin America and leverages its first-mover advantage in the fast-growing payment card market.
- Will accelerate Mobi724's expansion into Latin America with an enhanced geographic presence, additional products and services, new revenue streams and numerous cross-selling opportunities.
- Enables a truly end-to-end AI-powered e-commerce solution encompassing transactional insights, card-linked rewards and offers, digital marketing and fulfillment - with online and offline reach.
- Adds a solid business, well-managed by a team with a track record of success at growing its customers and creating value.
- Acquisition is expected to be immediately accretive with positive cash flow and additional benefits from increased market presence and a broader offering.
- Post-transaction in fiscal year 2023, Mobi724 expects to be EBITDA positive and generate consolidated revenues between $18M to $24M.
- Mobi724 to host webinar Wednesday, March 3 at 10:00 AM ET (link provided below).
Montreal, Quebec--(Newsfile Corp. - March 2, 2022) - Mobi724 Global Solutions Inc. (TSXV: MOS) ("Mobi724" or the "Company"), a fintech enabler of real-time, AI-powered payment card-linked solutions, is pleased to announce it has entered into an agreement in principle (the "Agreement") with Avenida Inc. (the "Seller") to acquire all of the shares of Avenida Compras S.A. ("Avenida+"), a rapidly growing white-label marketplace and e-commerce business with a growing presence in Latin America (the "Transaction"). The purchase price payable by Mobi724 for Avenida+ will consist of an upfront payment of US$4.0 million, of which US$3.5 million will be paid in cash and US$0.5 million will be paid through the issuance of shares at their market price at the time of closing, subject to a minimum issue price of $0.05 per share as per the requirements of the TSX Venture Exchange ("TSX-V"), as well as potential additional payments of up to a further US$6.0 million, payable in cash and shares, based on Avenida+'s financial performance during the period ending December 31, 2023 (the "Earn-out Payment"). The maximum Earn-out Payment of US$6.0 million would be comprised of US$5,350,000 in cash and US$650,000 in shares to be issued at their market price on the date of payment, again subject to a minimum issue price of $0.05 per share. It is contemplated that the shares so issued would be issued directly to the Seller's shareholders in proportion to their equity holdings in the Seller, all of whom act at arm's length to the Company.