Globalive Technology Acquires Call Option to Purchase Globalive Capital Control Position in Flexiti Financial

Globalive Technology Acquires Call Option to Purchase Globalive Capital Control Position in Flexiti Financial

• Flexiti Financial is a leading fintech private label credit card issuer that has grown its consumer credit to over $300 million in less than three years with a compound monthly growth rate of 30%
• Flexiti Financial's monthly revenue has crossed over $3 million, with new loan originations passing $20 million per month
• Globalive Technology's proprietary commercialization process for AI and blockchain will optimize security and financial performance of portfolio
• Globalive Technology will license the AI and blockchain software solution to financial services firms globally

TORONTO, June 21, 2018 /CNW/ - Globalive Technology (TSX-V: LIVE), an artificial intelligence and blockchain technology commercialization firm, has acquired a call right from and amended a put right previously granted to Globalive Capital ("GC") over its control position in Flexiti Financial ("Flexiti"), a leading fintech company and private label credit card issuer in Canada. Globalive Technology's independent directors Kingsley Ward, Managing Partner of VRG Capital and Jason Theofilos, Co-Founder of Mundo led the transaction on behalf of Globalive Technology.

Globalive Technology has previously announced a technology joint venture agreement with Flexiti. Under this agreement Globalive Technology expects https://www.newswire.ca/news-releases/globalive-technology-and-flexiti-financial-form-joint-venture-to-create-artificial-intelligence-and-blockchain-software-for-consumer-loans-market-685651661.html to leverage Flexiti's $300 million loan portfolio, 1.1 million customers and related historical loan data to build AI and blockchain platforms to optimize consumer financing at the point-of-sale.

"Securing this option to acquire a control position in Flexiti is an important step forward for the development of our AI and blockchain platforms," said Anthony Lacavera, Globalive Technology's Founder and CEO. "Flexiti is a leading fintech company and an incredible growth story, having grown from zero to $300 million in originations on their private label credit card platform in only three years. Its substantial ecosystem of customers and merchants will be key as we build out our software."

Flexiti recently acquired TD Financing Services' Canadian private label credit card portfolio, on which more than 2 million transactions valued at more than $3 billion have been facilitated. The Flexiti portfolio is currently generating over $20 million of new originations per month.

Once this platform is operational at scale, Globalive Technology intends to license the technology to global fintech companies. This will allow Globalive Technology to participate in revenue growth and cost savings created by the blockchain-based platform.

GC holds a controlling stake in both Globalive Technology and Flexiti.

Terms of the Transaction
Under the terms of the call right, Globalive Technology can require GC to sell its ownership and control position in Flexiti in exchange for 13.33 million Globalive Technology shares. The put right has been amended to increase the price payable to GC from 3.33 million shares of Globalive Technology to 5 million shares. The exercise of the call right and the consummation of this transaction would be subject to similar conditions as those applicable to the put right, including the approval of the TSX Venture Exchange (the "TSXV") and satisfying any conditions the TSXV might impose. In addition, the call right is subject to there being no material adverse change in the business of Globalive Technology. There can be no assurance that either the put or the call will be exercised or if exercised, that TSXV approval will be obtained.

For more information relating to the exercise of the put option, subject to amendments noted in this press release, readers should refer to the description of the original Put/ROFR Agreement as set out in the Filing Statement filed by Globalive Technology on May 29, 2018 and available on its SEDAR page at www.sedar.com.

About Globalive Technology Inc.
Globalive Technology is a next generation software company and venture partner that is developing and investing in innovative solutions to disrupt traditional industries using AI, IoT and blockchain technology. The company forms partnerships with leading high growth companies to co-develop artificial intelligence and blockchain technology stacks. It is controlled by Globalive Capital Inc. which has founded and co-founded 12 businesses over the past 20 years with 6 successful exits ranging from $10M to $1.3B USD. It has also made over 100 venture investments and has over 45 technology companies in its portfolio. For more information, visit www.globalivetech.com.

For press and media inquiries:
Tanya Sardana
Communications Officer, Globalive Technology
Media@globalivetech.com

For investor inquiries:
Laura Welsh
Account Manager
Renmark Financial Communications
InvestorRelations@globalivetech.com

Forward-Looking Statements:
This news release contains forward-looking statements relating to Globalive Technology ("GT") or GC exercising either the put option or call right, satisfaction of conditions should either the put or call be exercised, continued growth in Flexiti's customer base, GT leveraging certain aspects of Flexiti's business, benefits of its software for merchants, the joint venture building blockchain infrastructure for various applications, the ability of the joint venture to strengthen Flexiti's competitive advantage, GT's intention to license the technology to others and the resulting participation in revenue growth and cost savings. Such forward-looking statements are identified by terms such as "will", "intends" and similar expressions. All statements other than statements of historical fact, included in this release, including those noted above are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from GT's expectations include factors that could make it undesirable for either of the put or call to be exercised, the TSXV not approving the exercise of the put or call, or imposing conditions to such approval that either cannot be satisfied or that GT or GC, as applicable, would not want to satisfy, software not functioning as expected, competitors in the space, third parties not using the software or licensing the technology as expected, economic conditions making the technology or licenses not as attractive as expected and other risks as set out in the Filing Statement available on its SEDAR page at www.sedar.com.

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 GT. As a result, GT 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 GT will only update or revise publicly the included forward-looking statements as expressly required by Canadian securities law."

Financial information regarding Flexiti is based on unaudited numbers, based on estimates prepared by management of Flexiti from internal accounting and records and provided to GT. Although GT has no knowledge that would indicate that any statement contained herein concerning Flexiti and its business is untrue or otherwise misleading, GT does not assume any responsibility for the accuracy of any such information and GT has not independently confirmed this information.

SOURCE Globalive Technology