Mobi724 Global Solutions Inc., a fintech enabler of real-time, AI-powered payment card-linked solutions, is pleased to announce it has entered into an agreement in principle with Avenida Inc. to acquire all of the shares of Avenida Compras S.A., a rapidly growing white-label marketplace and e-commerce business with a growing presence in Latin America. The purchase price payable by Mobi724 for Avenida+ will consist of an upfront payment of US$4.0 million, of which US$3.5 million will be paid in cash and US$0.5 million will be paid through the issuance of shares at their market price at the time of closing, subject to a minimum issue price of $0.05 per share as per the requirements of the TSX Venture Exchange (“TSX-V”), as well as potential additional payments of up to a further US$6.0 million, payable in cash and shares, based on Avenida+’s financial performance during the period ending December 31, 2023 (the “Earn-out Payment”). The maximum Earn-out Payment of US$6.0 million would be comprised of US$5,350,000 in cash and US$650,000 in shares to be issued at their market price on the date of payment, again subject to a minimum issue price of $0.05 per share. It is contemplated that the shares so issued would be issued directly to the Seller’s shareholders in proportion to their equity holdings in the Seller, all of whom act at arm’s length to the Company.
Avenida+’s hub is based in Buenos Aires, Argentina, and currently serves B2B clients across Latin America, including banks. Avenida+’s white-label marketplace platform allows payment card issuers, loyalty program operators, shopping mall associations, and other third parties to provide their customers with an infinite variety of online products and offers from local merchant networks or leading global brands. Avenida+’s marketplace is integrated into several payment networks, allowing for a rapid scaling-up across Latin America and is available either as a SAAS or as an E2E model, including customer service, onboarding of merchants and logistics. Mobi724 Global Solutions Inc. (TSXV: MOS) is a fintech company that enables banks and merchants to offer their customers real-time payment card-linked incentives in a white-label format. Mobi724’s objective is to add a layer of AI-driven actionable intelligence to every payment transaction, creating engaging consumer experiences & generating incremental commercial opportunities to its clients.