Hunter Technology (HOC) has bolstered its software capabilities with its acquisition of Hong Kong-based FinFabrik.
Founded in 2016, FinFabrik builds software solutions designed to increase efficiency in complex markets, integrating issuance, deal matching and settlement in a singular end-to-end process.
Its core platform, CrossPool, enables fully digital, real-time transactions using distributed ledger technology for identity management, process compliance, provenance tracing, record immutability and enforceability of contracts.
According to the terms of the agreement, Hunter Technology purchased all of FinFabrik's issued and outstanding shares in exchange for just over 12.1 million of its own at a deemed price of US$0.90 (C$1.15) each. The company also paid a cash consideration to FinFabrik's vendors of US$250,000 (roughly C$318,000).
"We are very pleased to be partnering with the team at FinFabrik," said Andrew Hromyk, CEO of Hunter Technology, in a statement dated December 14.
"Their proven track record in developing commercial software will enable Hunter to bring our OilEx and OilExchange platforms to market at an accelerated pace, while driving new revenue growth across the existing, mature IP that FinFabrik has developed," he added.
In connection with the acquisition, FinFabrik's Florian Spiegl and Alex Medana were appointed as Senior Vice-Presidents of Hunter Technology, and were granted options to purchase a total of 1.5 million common shares at a price of US$0.75 (C$0.96) each, exercisable over a period of three years.
Alex, FinFabrik's CEO, said there is strong synergy in combining Hunter's expertise and network in the traditional oil industry with FinFabrik's leadership in marketplace technology.
"For FinFabrik this opens our next chapter and confirms our strategy to partner with industry-leading innovators," he added.
Shares in Hunter Technology remained steady at the close of trading yesterday at a price of C$1.23 each.