US-based fintech company GoLogiq has signed a letter of intent (LoI) to acquire financial solutions platform GammaRey.
Under the terms of the LoI, GammaRey will be acquired by GoLogiq as a wholly owned subsidiary in an all-stock transaction.
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GoLogiq would issue common shares, valued at $320m based of $3.00 per share pricing, to GammaRey shareholders.
GammaRey CEO Timothy Alford said: “Given the tremendous opportunities for growth in wealth management, the time has come to address the market on a larger scale through this highly synergistic merger.
“As a publicly traded company with more favorable access to the capital markets, it affords our GammaRey shareholders, as well as those of GoLogiq, numerous benefits. This includes greater liquidity, higher brand visibility, and recognition of the tremendous value we have created with our proprietary fintech platform.”
The combined company will initially focus on the high-growth market of wealth management for Generation Z and Millennials. It will later launch a new digital payment platform for the sharing economy.
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By GlobalDataThe two firms expect the acquisition to complete before the end of this year.
GoLogiq CEO Matthew Brent said: “Combining forces with GammaRey along with its capable and accomplished executive team represents a significant step toward realizing GoLogiq’s vision for a comprehensive fintech platform for underserved businesses and consumers when it became a public company last year.
“We see huge opportunities as we look to integrate our respective powerful fintech platforms, and set the stage for strong growth and profitability in the new year.”
Upon completion of the transaction, GoLogiq plans to continue to trade under the symbol “GOLQ” on the securities marketplace maintained by The OTC Markets. It plans to apply for an uplisting to a listed exchange.
GoLogiq, however, noted that definitive agreements have not been signed and there is no certainty such agreements will be signed.
