First Global Announces Proposed Sale of Its USA Subsidiary

Toronto, Oct 3, 2020 (Issuewire.com) - First Global Data Limited ("First Global" or the "Company") is pleased to announce that it has entered into a share purchase agreement (the "Agreement") for the sale of its USA subsidiary to MoneyMoov Payments Inc. ("MoneyMoov"), an arm's length party to the Company.

Pursuant to the Agreement, First Global intends to sell all of the issued and outstanding securities (the "Purchased Shares") in the capital of its wholly-owned subsidiary, First Global Money Inc. USA ("FGMI"), to MoneyMoov.In consideration for the sale of the Purchased Shares to MoneyMoov, First Global will receive the equivalent of CDN $13.5 million in value (the "Purchase Price").

The Purchase Price will be comprised of: (a) $3.5 million will be satisfied through the issuance 10 million common shares (the "Consideration Shares") in the capital of MoneyMoov at a deemed price of $0.35 per Consideration Share and (b) the assumption by MoneyMoov of an aggregate of $10 million of First Global liabilities (the "Assumed Liabilities").

First Global has not yet determined whether the Consideration Shares will be held by the company or whether they will be distributed to the shareholders of the Company on a proportional basis.

 

As a condition of closing, MoneyMoov requires the holders of the Assumed Liabilities to enter into agreements whereby the holders will agree to accept Class B Special Shares in the capital of MoneyMoov in exchange for the cancellation of the Assumed Liabilities.

 

In addition to the conversion of the Assumed Liabilities, closing of the proposed sale of the Purchased Shares is conditional on the receipt of applicable shareholder and/or regulatory approvals.

 

Mr. Andre Itwaru, CEO of MoneyMoov, says, "We believe that this is an equitable arrangement for both First Global and MoneyMoov. The intention and objective is to provide the shareholders of First Global with value and an opportunity for liquidity in the future, to provide the Series G Debenture holders and others with an opportunity to recover their investments over time, and at the same time to provide MoneyMoov with valuable assets it will benefit from to execute its growth objectives".

 

Mr. Krishnasamy Parthiban, a Director of First Global says, "The agreement with MoneyMoov is key as it provides our shareholders and certain debtholders with value, helps to clean up the balance sheet as we continue the efforts to turn the company around and to resume trading".  

 

About First Global Data Ltd. (www.firstglobaldata.com)

 

First Global is an international financial services technology ("FINTECH") company. The Company's two main lines of business are mobile payments and cross border payments. First Global's+ proprietary leading-edge technology enables the convergence of compliant domestic and cross border payments, shopping, Peer to Peer ("P2P"), Business to Consumer ("B2C"), and Business to Business ("B2B") payments. First Global enables its strategic partners and clients around the world with our leading-edge financial services technology platform.

 

About MoneyMoov Payments Inc. (www.moneymoov.com)

 

MoneyMoov is a financial services technology ('FINTECH') company that focuses on providing frictionless innovative, user friendly, and compliant electronic payment services for both domestic and international transactions.

 

For further information please contact:

First Global:

Mr. Krishnasamy Parthiban, Director

First Global Data Limited

email: [email protected]

 

MoneyMoov:

Mr. Andre Itwaru, President and CEO

MoneyMoov Payments Inc.

email: [email protected]

 

Caution:

Neither TSX Venture Exchange Inc. ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

 

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.

 

Forward Looking Information:

This news release contains "forward-looking information" within the meaning of applicable securities laws. Although First Global believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because First Global can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. First Global undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of First Global, its securities, or financial or operating results (as applicable). First Global disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Media Contact

MoneyMoov Payments Inc.

*****@moneymoov.com

833-766-6397

181 University Ave, Toronto

http://www.moneymoov.com

Source :First Global Data Limited

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