New Investors Join ParagonEx, MICT and Brookfield Merger

Moving into software development, Micronet will also remain a part of the company that emerges from the merger

The ParagonEx merger with NASDAQ-listed MICT took a positive turn this Thursday, with a new set of investors now taking part in the deal.

As Finance Magnates reported back in January, ParagonEx, a technology provider to the retail trading industry, and Chinese firm Brookfield Interactive Hong Kong (Brookfield) are attempting to perform a reverse takeover of MICT – a technology company listed on NASDAQ.

Discover the Barcelona Trading Conference – A Top Tier Crypto Trading Event

Once that deal is completed, the firms are going to merge and form a new Hong Kong-based company called Global Fintech Holdings.

As a part of the various dealings that would have to be made to ensure the merger can take place, one of Brookfield’s own subsidiaries – BNN – was supposed to acquire up to 20 percent of MICT.

Fresh investment

But now a new set of investors are taking part in the deal, changing the terms of BNN’s acquisition.

Named only as “strategic investors,” they are putting $7 million into the company in return for a set of convertible preferred shares.

Suggested articles

Asia Exchange Empowering Traders Through New OpportunitiesGo to article >>

BNN is not out of the picture, however, as it is putting $2 million into MICT in the form of a convertible loan. According to a statement released by MICT, that number could, if required, rise to $3 million.

It’s unclear as to exactly who the new investors are. But one person with some knowledge of the deal said they are likely to bring huge added value to Global Fintech Holdings.

“It would be like a technology company getting $1 million in investment,” said the source. “If you get $1 million from a very knowledgeable investor that’s amazing. But if you get $500,000 from that investor and another $500,000 from Google or Facebook then it’s even better.”

Product switch

Along with the new investors, the merger will not see Micronet, MICT’s main subsidiary, remaining a part of the newly formed Global Fintech Holdings.

A supplier of telecommunication technology, Global Fintech Holdings had planned to sell Micronet.

But in its statement, MICT said that Micronet would remain a part of the future Global Fintech Holdings group. The firm is transitioning into building new sets of products, notably software applications, that would be more in line with Global Fintech Holdings’ business strategy.

Got a news tip? Let Us Know