- RevoluGROUP stock fell in early morning trading, despite adding two agreements to its string of positive news flow since the resignation of chief executive officer Steve Marshall because of health reasons in July
- The company has raised funds and announced six partnerships since then, setting the stage for a shift in market sentiment
- RevoluGROUP Canada is a fintech stock active across banking, mobile apps, money remittances, cross-border forex payments, mobile phone top-ups, e-gaming, healthcare, invoice factoring, travel and blockchain systems
- RevoluGROUP stock has given back 79.17 per cent year-over-year, and 84.85 per cent over the past five years
RevoluGROUP stock (TSXV:REVO) fell in early morning trading, despite adding two agreements to its string of positive news flow since the resignation of chief executive officer Steve Marshall because of health reasons in July.
RevoluGROUP payments collaboration with SHIFT Financial
The company’s RevoluPAY subsidiary will provide U.K.-based SHIFT Financial Services with intermediary transfer solutions for core, high-value and high-margin payments in a multitude of currencies.
SHIFT Financial specializes in secure payment solutions for businesses and individuals. The company is authorized by the U.K.’s Financial Conduct Authority and regulated by His Majesty’s Revenue and Customs.
According to Tuesday’s news release, “SHIFT has concluded extensive compliance and transaction testing, delivering global transactions exceeding US$400,000 in under a week, and is prepared to rapidly scale up transactions to support clients’ evolving requirements.”
The partnership sets up RevoluPAY to capture more market share in the U.K., a leading financial hub, strengthening the subsidiary’s more than 120 country presence across remittances, forex, retail, hospitality, real estate, gift cards, utility, travel and more.
“Our collaboration with SHIFT is a testament to our commitment to providing top-tier financial solutions that meet the evolving demands of the global market,” Alfred Manresa, a director at RevoluGROUP and general manager of RevoluPAY, said in a statement. “Together, we are setting a new standard for multi-currency transactions, driving the digital payments revolution forward.”
A potential C$12.47 million cash injection
RevoluGROUP is also announcing a verbal agreement with Erik Aaran Lara Riveros and HBDIG Technologies GmbH, an Austrian financially regulated entity allied with a UAE-based financial consultancy firm, to conclude a C$12.47 million investment, negotiations for which have been ongoing since 2022.
The news follows a formal demand from RevoluGROUP after Riveros failed to follow through on an investment agreement announced in April 2023, and the subsequent exploration of legal avenues to pursue a C$647,000 penalty payment for breach of contract. This amount will be held in trust as both parties resume formal negotiations, including laying out a plan to substantially increase transaction volumes.
“Mr. Riveros’ commitment and financial backing are paramount to accelerating our mission of revolutionizing the financial ecosystem,” Gavin McMillan, RevoluGROUP’s new chief executive officer, said in a statement. “This partnership is an excellent example of our mutual dedication to innovation, and we look forward to rapidly concluding the steps necessary to move forward quickly and efficiently.”
Inklings of a turnaround story for RevoluGROUP
Since replacing Marshall as chief executive officer, McMillan has overseen a successful C$1.5 million private placement and multiple partnerships with Visa, Skylink Global, MyFullTrip and eSignus aimed at reorienting the company towards shareholder value creation.
Despite this positive news flow, RevoluGROUP shares have yet to recover from initially postponing the HBDIG Technologies investment in early 2023. The stock has given back 79.17 per cent year-over-year, and 84.85 per cent over the past five years.
RevoluGROUP Canada is a fintech stock active across banking, mobile apps, money remittances, cross-border forex payments, mobile phone top-ups, e-gaming, healthcare, invoice factoring, travel and blockchain systems.
RevoluGROUP Canada Inc. stock (TSXV:REVO) is down by 16.67 per cent trading at C$0.05 per share as of 11:23 am ET.
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