Toronto-based BitGold, pioneer of gold-based digital payments, gobbles up Jersey, British Channel Islands-based GoldMoney. GoldMoney has CAD 1.5 billion in assets under vault management.
Upon closing of the Acquisition Agreement, BitGold will acquire the intellectual property and operating assets of GoldMoney in exchange for the issuance of 11,169,794 common shares in BitGold, valuing the transaction at CAD 51.9 million based on BitGold’s CAD 4.65 closing price on May 21st. The transaction is expected to close within 60 days.
Potential benefits to shareholders include:
• The integration of an innovative and high integrity precious metal manager onto the BitGold platform; preserving the relationships GoldMoney has established with its customers while enhancing GoldMoney services with payment technologies
• The addition of relationships and knowledge acquired over nearly a decade and a half operating an e-platform for global metal purchases and sales
• The addition of over CAD 1.5 billion in customer assets onto the Aurum ledger, BitGold’s proprietary consolidated order book and trade engine
• The potential to develop new payment market relationships from over 135,000 signups on GoldMoney.com
• Applying new technology, analytics, and location intelligent language/currency engine to expand beyond the markets which have produced over GBP 3.1 billion in cumulative gross sales revenue for GoldMoney over the past decade
• Expected operating synergies from lower fixed overhead and lower working capital intensive technologies applied to GoldMoney operations, without compromising premium customer service
• The addition of a strong shareholder base and three GoldMoney directors to the combined Board of Directors
GoldMoney Network Limited is owned by well-established investors including James Turk, IAMGOLD Corporation, Fleming family and Eric Sprott, founder of Sprott Inc. GoldMoney headquarters are located in Jersey, British Channel Islands. GoldMoney is regulated by the Jersey Financial Services Commission (JFSC) as a Money Services Business. The JFSC is the main supervisory body that oversees and regulates Jersey’s large financial services industry.
GoldMoney is the registered business name of Net Transactions Limited, which provides metal storage services for its customers. GoldMoney’s affiliate company, Net-Gold Services Limited, handles the purchase and sale of precious metals. Upon closing of the transaction, BitGold will acquire from GoldMoney Network Limited all of the issued and outstanding shares of its three operating subsidiaries Net Transactions Limited, Net-Gold Services Limited and Net Transactions (Jersey) Limited and all of the proprietary intellectual property of GoldMoney Network Limited in exchange for the issuance of 11,169,794 common shares of BitGold, for which GoldMoney shareholders will be subject to a 12-month lock-up. The parties have entered into an Acquisition Agreement and further announcements will be made on the status of the acquisition as it proceeds toward closing.
BitGold provides users with a secure vault account to purchase gold using a variety of electronic payment methods. The platform will also provide transaction capability including: instant cross-border gold payments, merchant invoicing and processing for gold, debit card spending of gold at traditional points of sale, conversions to a customer’s external digital-wallet or bank, and physical gold redemptions.
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