Globalive Technology Provides Update on Previously Announced Exercise of Call Right to Acquire Control of Flexiti
Globalive Technology Provides Update on Previously Announced Exercise of Call Right to Acquire Control of Flexiti |
[13-September-2019] |
Globalive Technology is providing an update on its previously-disclosed exercise of a call right to acquire control of Flexiti Financial, subject to the satisfaction of certain conditions. Flexiti Financial is a leading fintech point-of-sale lender in Canada with over 1 million customers and approximately $225 million in loan receivables. TORONTO, Sept. 13, 2019 /CNW/ - Globalive Technology Inc. (TSX-V: LIVE) (the "Company"), a technology company focused on developing innovative payment, billing and credit solutions for consumers and businesses, today provided an update on its previously-disclosed exercise of a call right to acquire 2629331 Ontario Inc. ("262 Holdco"), subject to the satisfaction of certain conditions. 262 Holdco owns approximately 41% of the common equity of, and exercises 51% voting control over, FLX Holding Corp. ("FLX"), the parent of Flexiti Financial Inc. ("Flexiti"), a leading point-of-sale consumer financing solutions company in Canada with over 1 million customers and a loan book of approximately a quarter of a billion dollars. "As is clear from recent partner announcements from, for example, Birks, Bad Boy, Henry's, EQ3, and JYSK, together with its successful integration of the TD book, Flexiti continues to impress with its execution and growth," said Anthony Lacavera, the Company's Chief Executive Officer. "We see a tremendous opportunity for Globalive Technology." As announced on January 9, 2019 and February 20, 2019, the exercise of the call right is subject to various conditions, including approval of the TSX Venture Exchange ("TSX-V"), minority shareholder approval in accordance with Multilateral Instrument 61-101 ("MI-61-101"), and the Company or Flexiti successfully raising adequate equity financing. Since that time, as Flexiti has been exploring a more comprehensive equity solution, Flexiti has secured aggregate debt and equity financing of approximately $16.6 million from existing stakeholders of Flexiti. Such participating stakeholders included Globalive Capital Inc. ("GC") ($1.9 million in aggregate) and the Company ($3.11 million in aggregate). The Company's management is pleased with the positive momentum it sees in its discussions with Flexiti and its stakeholders and is considering, in addition or in the alternative to the exercise of the call right over 262 Holdco, a business combination transaction that would result in the Company owning all or substantially all of the common equity of Flexiti on terms acceptable to the Company and to Flexiti's key stakeholders (a "Business Combination Transaction"). Negotiating and implementing the Business Combination Transaction is now the Company's primary focus in relation to Flexiti; consistent with the foregoing, the Company recently realized cash proceeds of approximately $3.5 million from the disposition of certain non-Flexiti assets. All negotiations regarding a Business Combination Transaction are still preliminary and there can be no assurance that such a transaction, or even an agreement relating to such transaction, will be reached. If negotiations are successful, the consummation of a Business Combination Transaction will be subject to certain conditions, including the Company or Flexiti successfully raising additional debt and equity financing and obtaining any requisite approvals from the TSX-V, the Company's minority shareholders in accordance with MI 61-101, the requisite shareholders of Flexiti, FLX and 262 Holdco, the secured creditors of Flexiti, FLX and 262 Holdco, and other key stakeholders. If a Business Combination Transaction can be successfully negotiated, the Company will call a shareholder meeting and deliver a management information circular and related materials that will contain further details regarding the Business Combination Transaction. Any Business Combination Transaction will be subject to MI 61-101, as both 262 Holdco and the Company are controlled by GC, which in turn is controlled by Anthony Lacavera, the Company's Chief Executive Officer. "We're optimistic about what a business combination with Globalive Technology could mean for Flexiti," said Peter Kalen, Chief Executive Officer of Flexiti. "Their proven success in raising and managing capital, combined with their experience in AI–driven software solutions, could play a key role in the long-term success of Flexiti and achieving our immense potential." About Globalive Technology Inc. About Flexiti Financial Inc. For investor inquiries: For media inquiries: CAUTION REGARDING FORWARD-LOOKING INFORMATION The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The Company cannot guarantee that any of the forward-looking statements contained in this press release will occur as disclosed herein or at all. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly the included forward-looking statements as expressly required by Canadian securities law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE Globalive Technology | ||
Company Codes: TorontoVE:LIVE |
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