Fintech Select, Ltd. (TSXV: FTEC) is a Canadian-based technology company focused on providing prepaid payment services and point-of-sale transaction processing solutions. Shares soared 100% on Monday, January 7, 2019. Over the past three months, Fintech has seen an average daily volume of 128,114 shares. However, on Monday, 3,094,298 shares traded hands, equating to C$108,300 in dollar volume.
Shares surged Monday after Fintech announced it entered into a definitive agreement with Mswipe Technologies Pvt Ltd. Under the agreement, Fintech will acquire an online payment and e-wallet platform from Mswipe in exchange for 6,000,000 of Fintech’s common shares. In addition, Fintech will issue 500,000 common shares to a third party as a finder’s fee. The acquisition of the e-wallet platform is part of an overall re-focusing of Fintech’s strategy in an effort to “increase its focus on the digital payment services sector and to offer services to businesses and individuals globally.” Here is the full press release detailing the transaction between Fintech and Mswipe:
Fintech Select, Ltd. Press Release:
TORONTO, Jan. 07, 2019 (GLOBE NEWSWIRE) — Fintech Select Ltd. (“Fintech Select” or the “Company”) (TSX-V: FTEC) is pleased to announce that it has signed a definitive agreement with Mswipe Technologies (“Vendor”)—A Canadian company—to acquire an online payment and e-wallet platform (“Platform”) that will complement and easily integrate with the Company’s existing core payment platforms.
The Company has made the decision to increase its focus on the digital payment services sector and to offer services to businesses and individuals globally. These services include, but are not limited to, mobile payments, prepaid cards, money transfers, E-commerce processing, corporate disbursements, credit card processing, invoice management, fraud and risk management, request and send money, mass pay, shopping cart integration, E-wallet load/unload through bank transfers, credit card, wire or direct debit.
The source code of the acquired platform is written with a development tool that the Company’s in-house IT team already has extensive experience with, which allows the company to customize the platform to meet its evolving strategy.
The Company will be issuing six million (6,000,000) common shares to the Vendor, in consideration for the acquired Platform, and five hundred thousand (500,000) common shares, as payment of finder’s fees to an arm’s length third-party upon TSX’s approval.
“We are very excited about this strategic acquisition as it will allow the Company to extend its integrated payment services globally to both businesses and individuals, and for the Company to play a leading role in this business segment. The total transaction value in the digital payments segment in 2018 was approximately US$3.4 trillion and is expected to show an annual growth rate of 13.2%, resulting in the total amount of approximately US$6.335 trillion by 2023. Also, in 2018, the number of users of digital payments was approximately 2.9 billion and is expected to increase to 3.26 billion by 2023. We are optimistic that using this high-tech platform will enable us to penetrate a good percentage of this global market”, stated Mr. Mohammad Abuleil, Chief Executive Officer of the Company.
Article By: Andrew Rego
