- 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
