ParagonEx, a technology provider for the retail trading industry, and the Chinese company Brookfield Interactive Hong Kong have teamed up to perform a reverse takeover of MICT, a technology company which has been listed this Thursday on NASDAQ.
Their attempt seems to become a successful one for all parties involved because it has many positive prospective outcomes. It seems that as soon as the deal will be completed, the firms will merge and create a new company called Global Fintech Holdings which will be based in Hong Kong.
Yet, things aren’t as simple as they might look like in the beginning. There are various dealings that would have to be made to ensure the merger will take place, including one of Brookfield’s own subsidiaries, BNN, which was supposed to acquire up to 20 percent of MICT.
New investors become part of the deal
It appears that the terms of BNN’s acquisition will be changed as a new set of investors are joining the stage and want to take part in the deal.
The new set of investors is called “strategic investors” as they put $7 million into the company but, obviously, in return for a set of convertible preferred shares. However, it seems the BNN isn’t completely out of the picture in this deal because the company aims to put $2 million into MICT, an amount that will be translated as a convertible loan. MICT released a statement that suggested that the amount of $2 million can rise to $3 million if the company will require it.
By now, the public opinion has no clue of who those new investors might be. However, one person that has close relationships with the deal claimed that this new set of investors will most likely bring huge value to the new company Global Fintech Holdings.
Will Micronet be sold?
The new investors that joined the deal have made some significant changes in the stage of the plans. It seems that the newly formed Global Fintech Holdings, a supplier of telecommunication technology, has no plans in keeping Micronet, MICT’s main subsidiary. In fact, the company has announced that it plans to sell Micronet.
However, things get a little bit confusing as MICT has made a statement in which it announced that Micronet will actually remain a part of the future Global Fintech Holdings group. Micronet company plans a transition to build new sets of products, including software applications, that will be more suitable for Global Fintech Holdings’ business strategies.