Toronto-based BitGold has swallowed the intellectual property and operating subsidiaries of GoldMoney for $59.4 million and will become GoldMoney. The BitGold payment and savings platform will operate as a separate service focusing on the expansion of a high-growth internet user base, while also developing a global end-to-end payments and international transfer network utilizing BitGold settlement technology.
GoldMoney will continue to operate without interruption, maintaining premium client services, with the added pricing and execution benefits and additional features of the BitGold technology to come. The combined entity will also build services in additional market segments, creating a global, full-reserve financial service network to grow market share in payments, international transfers and remittance, in-app and micro payments, and cross income-segment savings and wealth management.
BitGold is developing plans for an internal reorganization to be announced late July in which its operating structure and staffing mandates will be enhanced to further integrate GoldMoney and support the expansion of the combined business. The first step will be a name change of BitGold Inc. to GoldMoney Inc., subject to regulatory approval.
Pursuant to the Acquisition Agreement BitGold granted to GoldMoney the right to nominate three directors to its board of directors (the “BitGold Board”) until July 20, 2018. BitGold welcomes GoldMoney director Mahendra Naik, who has been appointed to the BitGold Board. Mr. Naik will be joined by two additional GoldMoney Directors, James Turk and Hector Fleming, whom management will nominate for election to the BitGold Board at a meeting of shareholders to be held in September 2015. Further information about Messrs. Naik, Turk, and Fleming is available in BitGold’s news release of May 22, 2015.
The transaction is valued at $59.4 million based on the $5.32 closing price of the Common Shares on the TSX Venture Exchange on July 20, 2015. The Common Shares issued to GoldMoney are subject to a hold period expiring November 21, 2015, and a 12-month lock-up period expiring July 21, 2016.
BitGold Inc. (to be GoldMoney Inc.) is a global, full-reserve and gold-based financial services business. GoldMoney provides financial services as a trusted, limited third-party, combing the unique attributes of gold with technology driven innovation. Through GoldMoney the company offers precious metals custody, trading and execution, wealth management and research to individual investors and institutions. Through BitGold the company operates a self-directed savings platform and payments network allowing individuals and businesses to make or receive online, in-store or mobile payments. GoldMoney Inc. has over 150,000 customers from over 200 countries and $1.5 Billion in client assets under administration.
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