Nasdaq-listed MICT announced today that it has completed the acquisition of a wholly-owned subsidiary of Global Fintech Holdings Ltd. (“GFH”) for approximately $25 million in convertible securities.
MICT revealed that in connection with the previously announced private placement of convertible promissory notes, it has also received commitments to purchase the full $15 million of such notes. Upon stockholder approval, both the securities issued as merger consideration and the promissory notes issued in the private placement will be convertible into shares of MICT common stock at a conversion price of $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,” stated MICT CEO Darren Mercer.
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“Finally, I would like to thank our employees and stockholders for their continued support throughout the acquisition process,” he added.
MICT operates through its subsidiaries, Global Fintech Holdings Intermediate Ltd (“GFH”) and Micronet Ltd. (“Micronet”). GFH’s versatile proprietary trading technology platform is designed to serve a large number of high growth sectors in the global fintech space.
Primary areas of focus include online brokerage for equities trading and sales of insurance products in several high-growth foreign markets including Asia where GFH owns a substantial propriety database of users. Micronet operates in the growing commercial Mobile Resource Management (MRM) market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments.