TORONTO, Oct. 18, 2018 /CNW/ - Globalive Technology
(TSX-V: LIVE), a pioneer in emerging decentralized financial
technology, announces that today it acquired $5.5 million aggregate principal amount of the
$15 million of outstanding senior
convertible debentures (the "Debentures") of 2629331 Ontario Inc.
("Flexiti Holdco"). The Debentures, which were acquired from
third-party creditors of Flexiti Holdco, were purchased for an
aggregate of $6.05 million in cash.
Flexiti Holdco is the controlling shareholder of Flexiti Financial
("Flexiti"), a leading fintech company and private label credit
card issuer in Canada.
Globalive Technology has previously described the Debentures in
its Filing Statement dated May 29,
2018. Globalive Technology also holds a call right and a
right of first refusal over Flexiti Holdco and is subject to a put
right in respect of Flexiti Holdco under a previously disclosed
agreement.
As previously announced, Globalive Technology has entered into a
technology development agreement with Flexiti, and expects to
leverage Flexiti's $300 million loan
portfolio, 1.1 million customers and related historical loan data
to build artificial intelligence and blockchain platforms to
optimize consumer financing at the point-of-sale.
"The acquisition of these senior debentures increases Globalive
Technology's stake in Flexiti's growing business," said
Anthony Lacavera, Globalive
Technology's Chief Executive Officer. "I expect this transaction
will generate a favourable economic return and create efficiencies
in future interactions between Globalive Technology and
Flexiti."
In June 2018, Flexiti 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.
About Globalive Technology Inc.
Globalive Technology
is dedicated to building a more equitable future for consumers,
investors, and businesses through decentralized financial
technology. The company forms partnerships with leading high growth
companies to co-develop products that leverage emerging
technologies such as artificial intelligence and blockchain. These
products enable smarter, faster and lower cost payments, financing,
investing, billing and more. Globalive Technology is controlled by
Globalive Capital Inc. which has founded and co-founded 12
businesses over the past 20 years with six 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.
About Flexiti
Flexiti has reimagined point-of-sale
(POS) consumer financing to drive sales for retailers in-store and
online, becoming one of Canada's
leading private label credit card issuers. Through their
award-winning platform, they deliver a POS financing experience
across any device that is customer-centric, simple and intuitive.
Without the need to integrate into existing POS systems, retail
partners can easily offer the same fast and paperless financing
solution across all retail locations and sales channels to increase
revenue and build loyalty through repeat purchases. With high
approval rates, innovative products and services, flexible
promotional offers and a partnership-first approach, Flexiti is
helping people improve lives through better financing. For more
information, visit http://flexitifinancial.com/.
For media inquiries:
Rob
Moysey
Communications Manager, Globalive
Media@globalivetech.com
For investor inquiries:
Laura
Welsh
Account Manager, Renmark Financial Communications
InvestorRelations@globalivetech.com
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements relating
to Globalive Technology's expectations to leverage Flexiti's loan
portfolio, customers and related historical loan data and its
related ability to optimize consumer financing at the
point-of-sale, as well as the acquisition of the Debentures
resulting in a favourable economic return, cost reduction and
efficiencies in future interactions with Flexiti. Such
forward-looking statements are identified by terms such as
"expects", "is expected", 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 Globalive Technology's expectations
include the ability of Globalive to leverage various portions of
Flexiti's business and there being continued and increased business
interactions with Flexiti, and other risks as set out in Globalive
Technology's 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 Globalive Technology. As a result, Globalive
Technology 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 Globalive Technology 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
