GoLogiq, Inc. (OTC:GOLQ), a U.S.-based global provider of fintech
and consumer data analytics, has signed a non-binding letter of
intent to acquire all of Fram Venture 7 AB, a Swedish fintech
corporation, for US$6 million in an all-stock transaction. Total
consideration could increase to US$20 million depending upon the
achievement of certain earn-out targets.
The acquisition includes all of Fram Venture 7’s equity interest
in its wholly-owned subsidiary, DragonLend, a lending platform for
profitable small and medium-sized enterprises (SME) in Vietnam. The
acquisition is expected to complement GoLogiq’s existing fintech
ecosystem, which encompasses a range of financial services, from
payroll services to retirement investing.
DragonLend provides short-term (three to six months) working
capital finance solutions to profitable Vietnamese SMEs. Although
SMEs are critical to Vietnam's economy, generating 40% of gross
domestic product (GDP) and 50% of jobs, they are having challenges
accessing finance, with approximately 62% of total SME financing
needs unmet, according to a press release from IFC. IFC estimates
Vietnam's financing gap for SMEs is approximately US$21.7
billion.
DragonLend is addressing this opportunity by offering businesses
fairer, faster and easier access to short-term working capital for
fuelling their growth. Through the application of its proprietary
risk model and working closely with its clients, DragonLend can
issue finance solutions in a matter of days versus weeks or months
as is typical of more traditional lending institutions.
DragonLend's vision is to become Vietnam’s most trusted and
reliable working capital provider for profitable SMEs.
DragonLend was founded in 2019 and issued its first loan in
2020. Despite substantial Covid-19 restrictions and a challenging
business climate, DragonLend has disbursed close to US$9 million
since 2020, and plans to serve thousands of SMEs countrywide in the
coming years with flexible product offerings and best-in-breed
client service. DragonLend clients are primarily engaged in various
supply chain verticals, such as manufacturing, wholesale and
distribution.
The team behind DragonLend are experienced builders of companies
in frontier markets. They are from the Swedish-Vietnamese
investment group Fram Skandinavien (NASDAQ First North: FRAM B).
This includes Fram Venture 7’s chairman, Christopher Beselin, who
founded and previously served as CEO of Lazada Vietnam. Lazada
Group was sold to Alibaba for US$3.5 billion.
“We believe market conditions are perfect for DragonLend to
rapidly scale its SME lending platform in Vietnam, especially given
how the country’s small business sector has been experiencing
strong economic growth,” stated DragonLend CEO, Max Bergman. “We
now have assembled years of valuable data for our credit scoring
model, which can rely on for driving profitable growth.”
GoLogiq CEO, Granger Whitelaw, commented: “The acquisition of
DragonLend would further our expansion into Vietnam with a proven
business lending service that is highly complementary to our
fintech ecosystem. We see its scalable platform enabling us to
expand into other emerging markets across Southeast Asia, such as
Singapore and Thailand.”
According to the World Bank, an estimated 65 million or 40% of
MSMEs in developing countries have an unmet financing need of
US$5.2 trillion annually, which is equivalent to 1.4 times the
current level of global MSME lending.
Additional Proposed Transaction DetailsUnder
the terms of the letter of intent, GoLogiq will acquire 100% of
Fram Venture 7 and secure employment agreements with management.
The company anticipates closing the transaction in September.
While GoLogiq expects the transaction to be completed as
anticipated, a definitive agreement has yet to be signed and no
assurances can be given it will be executed or the transaction will
be completed as described. When such a definitive agreement would
be mutually signed, the details would be made available in a Form
8-K to be filed with U.S. Securities and Exchange Commission on
www.sec.gov as well as on the investor section of GoLogiq’s
website.
GoLogiq’s recently announced a sale of its fintech assets to
Recruiter.com Group (NASDAQ:RCRT) (NASDAQ:RCRTW) (“Recruiter”), a
recruiting solutions provider. If such sale is consummated prior to
the closing date of GoLogiq’s acquisition of Fram Venture 7,
GoLogiq intends to assign its rights in its purchase agreement to
Recruiter, whereupon Fram Venture 7 would become a subsidiary of
Recruiter.
About DragonLendDragonLend, a subsidiary of
Fram Venture 7, is a financial lending platform that supports
Vietnamese SMEs with working capital solutions to fuel their
growth. Fram Venture 7 and DragonLend were founded by a group of
entrepreneurs from Fram Skandinavien AB (NASDAQ First North: FRAM
B), a publicly traded investment group. To learn more about
DragonLend, go to www.dragonlend.vn.
About GoLogiqGoLogiq Inc. is a U.S.-based
global provider of fintech and mobile solutions for digital
transformation and consumer data analytics. Its software platforms
are comprised of CreateApp, a mobile app development and publishing
platform for small-to-medium sized businesses; AtozGo™, a
‘hyper-local’ app-based delivery platform; AtozPay™, an eWallet for
mobile top-up, e-commerce purchases, bill payment and microfinance;
and Radix™, a Big Data analytics platform. To learn more, go to
gologiq.com or follow the company on twitter: $GOLQ and
@gologiq.Important Cautions Reading Forward-Looking
Statements This press release contains certain
forward-looking statements and information, as defined within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and is subject to the
Safe Harbor created by those sections. This press release also
contains forward‐looking statements and forward‐looking information
within the meaning of United States securities legislation that
relate to GoLogiq’s current expectations and views of future
events. Any statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of
words or phrases such as “will likely result”, “are expected to”,
“expects”, “will continue”, “is anticipated”, “anticipates”,
“believes”, “estimated”, “intends”, “plans”, “forecast”,
“projection”, “strategy”, “objective” and “outlook”) are not
historical facts and may be forward‐looking statements and may
involve estimates, assumptions and uncertainties which could cause
actual results or outcomes to differ materially from those
expressed in such forward‐looking statements. No assurance can be
given that these expectations will prove to be correct and such
forward‐looking statements included in this press release should
not be unduly relied upon.
These statements speak only as of the date of this press
release. Forward‐looking statements are based on a number of
assumptions and are subject to a number of risks and uncertainties,
many of which are beyond GoLogiq’s control, which could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking statements. Factors
that may cause actual future events to differ materially from the
expected results, include, but are not limited to: (i) the risk
that the merger between Recruiter.com and GoLogiq SPV (or similarly
formed subsidiary to effectuate the transaction) (the “Merger”) may
not be completed in a timely manner or at all, (ii) the failure to
satisfy the conditions to the consummation of the transaction,
including the adoption of the Agreement by the stockholders of
Recruiter.com and GoLogiq, (iii) the occurrence of any event,
change or other circumstance that could give rise to the
termination of the Agreement, (iv) the receipt of an unsolicited
offer from another party for an alternative transaction that could
interfere with the Merger, (v) the effect of the announcement or
pendency of the transaction on GoLogiq’s business relationships,
performance, and business generally, (vi) the inability to
recognize the anticipated benefits of the Merger, which may be
affected by, among other things, competition and the ability of the
post-Merger company to grow and manage growth profitability and
retain its key employees, (vii) costs related to the Merger, (viii)
the outcome of any legal proceedings that may be instituted against
Recruiter.com and GoLogiq following the announcement of the
proposed merger, (ix) the ability to maintain the listing of
Recruiter.com’s securities on Nasdaq, (x) the ability to implement
business plans, forecasts, and other expectations after the
completion of the Merger, and identify and realize additional
opportunities, (xi) the risk of downturns and the possibility of
rapid change in the highly competitive industry in which GoLogiq
operates, (xii) the risk that GoLogiq may not sustain
profitability, (xiii) the risk that GoLogiq may need to raise
additional capital to execute its business plan, which many not be
available on acceptable terms or at all, (xiii) the risk that
third-party suppliers and manufacturers are not able to fully and
timely meet their obligations, (xiv) the risk of product liability
or regulatory lawsuits or proceedings relating to the products and
services of GoLogiq, (xv) the risk that GoLogiq is unable to secure
or protect its intellectual property, and (xvi) the risk that the
securities of the post-Merger company will not be approved for
listing on Nasdaq or if approved, maintain the listing. The
foregoing list of factors is not exhaustive. In particular and
without limitation, our products and services, the use and/or
ongoing demand for our products and services, expectations
regarding our revenue and the revenue generation potential of our
products and services, our partnerships and strategic alliances,
the impact of global pandemics (including COVID-19) on the demand
for our products and services, industry trends, overall market
growth rates, our growth strategies, the continued growth of the
addressable markets for our products and solutions, our business
plans and strategies, our ability to apply to and meet the listing
standards and approvals for Nasdaq, NYSE, or other senior exchange,
our global expansion efforts, our ability to successfully locate
and consummate any contemplated strategic transactions or other
acquisitions, our ability to successfully complete a merger or
acquisition of Fram Venture 7 AB, the structure of any such
transaction, timing of such transaction, and the valuation of the
businesses after completion of any such transaction, if any, and
other risks described in the Company’s prior press releases and in
its filings with the Securities and Exchange Commission (SEC)
including its Annual Report on Form 10-K and any subsequent public
filings.
GoLogiq undertakes no obligation to update or revise any
forward‐looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. New
factors emerge from time to time, and it is not possible for
GoLogiq to predict all of them, or assess the impact of each such
factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward‐looking statement. Any forward‐looking
statements contained in this press release are expressly qualified
in their entirety by this cautionary statement. GoLogiq
Company ContactGranger Whitelaw, CEOGoLogiq, Inc.Email
Contact
GoLogiq Investor RelationsRon BothCMA Investor
RelationsTel (949) 432-7566Email contact
GoLogiq Media & ESG ContactTim RandallCMA
Media RelationsTel (949) 432-7572Email contact
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