MICT (MICT.Q) finished the acquisition of one of Global Fintech Holdings subsidiaries for the price of $25 million in convertible securities.
This acquisition comes alongside a private placement of convertible promissory notes that had been previously announced, in which Mict picked up $15 million. The issued securities and the promissory notes will after stockholder approval be convertible shares of Mict’s common stock, converting at $1.10 per share.
“Our acquisition of GFH is a transformative milestone which we believe will springboard our future revenue and earnings growth and positively impact stockholder value. We have created a global platform to organically, and through further accretive acquisitions, grow both our fintech and telematics businesses. We are incredibly excited about the future of our company and are eager to execute on a pipeline of significant business opportunities available to us. We anticipate updating our shareholders of these new significant developments in the coming weeks and months,” said Darren Mercer, MICT’s CEO.
Mict does business through its subsidiaries, including Global Fintech Holdings Intermedia and Micronet. GFH trading tech platform serves a large number of growth sectors in the fintech industry.
These fundraising efforts and subsequent acquisition is part of the company’s 2019 strategy to expand into the global fintech sector. The company intends to use the cash they’ve raised to fund further acquisitions in the space, and enter into partnerships that will bring immediate earnings growth while enhancing value for shareholders, and develop GFH’s online platforms.
The acquisition gives MICT control of a trading technology platform with penetration into a number of growth sectors, giving them the ability to use platforms employed by strategic partners. They’re focused on online brokerage for equities trading and sales of insurance products in several foreign markets, but their primary focus will be on provision of services in China, where there is a strong demand for investment products and wealth management services.
—Joseph Morton