Prodigy Announces Acquisition of FICANEX Technology to Take the Lead on Open Banking and Digital Identity
Jul 12, 2021, 07:30 ET
TORONTO, July 12, 2021 /CNW/ - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") is pleased to announce that today it has entered into a definitive unit purchase agreement (the "Unit Purchase Agreement") to acquire all of the outstanding units of FICANEX Technology Limited Partnership ("FICANEX Technology"), a Fintech platform business, for a purchase price of $4,000,000 (the "Transaction").
"We are excited to acquire FICANEX Technology as we continue to lead the way to the future for open banking and digital identity solutions", said Tom Beckerman, Prodigy's CEO. "Their tunl.chat platform provides great value to their credit union and bank customers, and the next release will expand the offering to a much broader range of Fintech services. The tunl.TM platform complements Prodigy's IDVerifactTM platform, and together they are expected to expand Prodigy's recurring platform revenue and enhance our delivery of Fintech innovation. As part of this transaction, Prodigy is delighted to welcome FICANEX Technology's many credit union and bank limited partners as new shareholders of the Company."
Andrew Obee, CEO of FICANEX Technology, commented, "Our team is thrilled to be joining the Prodigy group as we merge our efforts to deliver leading edge technology to our credit union and bank partners. Prodigy is a leader in the Fintech innovation space, and will accelerate our development and time to market for our next generation tunl. platform."
Pursuant to the terms of the Unit Purchase Agreement, on closing the Company will issue the vendors an aggregate of 26,666,667 units ("Prodigy Units") in the capital of Prodigy. Each Prodigy Unit will consist of one common share of the Company (a "Common Share") and 0.15 of a Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share at a price of $0.25 for a period of 2 years from the closing of the Transaction, provided that if, at any time prior to the date that is 2 years from the closing date, the volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the "Exchange"), or other principal exchange on which the Common Shares are listed, is greater than $0.35 for 20 consecutive trading days, the Company may, within 15 days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 45 days following the date of such notice (the "Accelerated Exercise Period"). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.
As at December 31, 2020, FICANEX Technology reported $1.9 million in net assets and for the year ended December 31, 2020, the first year operating its platform, FICANEX Technology reported revenue of $690,000 with associated expenses of $1.9 million.
The Transaction is arm's length and no finder's fees are payable for the Transaction.
It is anticipated that the closing of the Transaction will take place on or before July 30, 2021. The Transaction remains subject to a number of conditions including receipt of applicable regulatory approvals and there is no guarantee that such conditions will be satisfied and that the Transaction will be completed on its current terms or at all.
About Prodigy Ventures Inc .
Prodigy delivers Fintech innovation. The Company provides leading edge platforms, including IDVerifact™ for digital identity , and new Fintech platforms for open banking and payments. Our services business, Prodigy Labs™, integrates and customizes our platforms for unique enterprise customer requirements, and provides technology services for digital identity, payments, open banking and digital transformation. Digital transformation services include strategy, architecture, design, project management, agile development, quality engineering and staff augmentation. Prodigy has been recognized as one of Canada's fastest growing companies with multiple awards: Deloitte's Fast 50 Canada and Fast 500 North America (2016, 2017, 2018), Branham 300 (2017, 2018), Growth List (2018, 2019 and 2020), and Canada's Top Growing Companies (2019 and 2020).
For more information on Prodigy Ventures visit https://prodigy.ventures
About FICANEX Technology
FICANEX Technology empowers financial services providers to accelerate innovation by providing next-generation digital services in support of financial institutions across Canada, allowing them to effectively compete in the digital era. FICANEX Technology has its roots in collaboration and developed and supports the tunl. Fintech integration marketplace and open banking platform. Today, FICANEX Technology is well known for its tunl.chat solution and its innovative roadmap that focuses on operational efficiency and delivering an improved customer experience for financial institutions of all sizes across Canada.
For more information on FICANEX Technology visit https://ficanex.technology
Forward-Looking and Cautionary Statements
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward looking statements in this press release include statements regarding the anticipated benefits and successful closing of the Transaction. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's Management's Discussion and Analysis for the three months ended March 31, 2021, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Prodigy Ventures Inc.
For further information: PRODIGY VENTURES INC., Andrew Hilton, Chief Financial Officer, [email protected], 416-606-8833
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