ParagonEX & MICT Merger Continues with Major Chinese Deal

BNN Technology will distribute lottery technology in over 10,000 locations of one of China's largest players

After fresh news of a significant deal with MICT, BNN Technology has just confirmed that it closed a new major deal. The company’s exclusive partner, Beijing New Net Science & Technology Development Limited (New Net) signed a deal with one of the largest Chinese retail outlets.

The deal enables the company to promote and market the rollout of a lottery platform with a Chinese retail group that owns close to 10,000 locations in the country. The nationwide service contract is for lottery technology, promotion, and marketing.

BNN and New Net will deliver specialized technology, strategy, marketing, and promotional services for dedicated lottery outlets to be deployed in the retailer’s stores, selling Welfare Lottery and Sports Lottery tickets.

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Upon completion of a successful trial, it is anticipated that a nationwide roll-out will be centered, initially, around major provinces and cities on China’s Eastern seaboard, before covering the vast majority of the retailer’s more than 10,000 stores.

The agreement also provides an opportunity for BNN and New Net to connect with the retailer’s significant online customer presence. BNN anticipates this to be the first of a number of similar contracts with other prominent Chinese companies and service providers controlling significant numbers of nationwide outlets.

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As the deal is finalized, further updates are expected from the company. Meanwhile, the Executive Director of BNN, Darren Mercer, said: “Securing a very significant and material agreement with such a prestigious and substantial retail partner is testament to the breadth of our longstanding commercial relationships in China, as well as to the strength of our specialist technology, marketing and promotional expertise and our track record in the lottery sector.”

“The transformation of our business and the proposed combination with MICT and ParagonEX has allowed us to work closely together as a group in leveraging our network in China, built over 15 years, to pursue major fintech opportunities with considerable value-enhancement for our shareholders,” Mercer elaborated on the deal.

The company plans to launch its enlarged and highly profitable business as the deal with Global Fintech Holdings is progressing towards completion, and several other significant revenue acquisition deals are being discussed by ParagonEX and are close to being finalized.

“We look forward to starting life with several valuable opportunities underway and net cash reserves in excess of $30m. All participants in the transaction will provide updates in due course. I remain extremely excited about prospects for the new group and view the future with a high degree of confidence,” Mercer said.

Back in January, Finance Magnates reported on the ParagonEx merger with NASDAQ-listed MICT.  The deal was recently joined by a set of new investors with BNN providing between $2 and $3 million funding in the form of a convertible loan.

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