Lynx Global Signs Definitive Agreement to Acquire a Controlling Interest in Arkin
Lynx Global Signs Definitive Agreement to Acquire
a Controlling Interest in Arkin
Vancouver, British Columbia --(Newsfile Corp. - April 26, 2021) - Lynx Global Digital Finance
Corporation (CSE: LYNX) (OTC Pink: CNONF) (FSE: 3CT), ("LYNX" or the " Company"), is
pleased to announce that it has signed a definitive share purchase agreement (the "Agreement")
in connection with its previously disclosed (see March 8, 2021, news release) acquisition (the
"Acquisition") of a 51% equity interest in Australia-based Arkin Technologies Pty Ltd. ("Arkin").
Arkin is an Australian Transaction Reports and Analysis Centre (“AUSTRAC”) registered holder
of a Remittance license and Digital Currency Exchange Services Provider license in Australia.
By including Arkin as one of Lynx’s operating companies, Lynx will be able to able to offer its
customers with both Money Transfer, and exchange and trade of money for digital currency and
digital currency for money in that market.
“Adding Australia to our network of linked licensed operations is a significant step in our strategy
to build a regional fintech payment platform. When t his transaction is completed we will be
connecting Singapore, Philippines and Australia as a single bi-directional remittance corridor that
we can layer on the additional payment services from each operating company.” Mike Penner,
CEO, Lynx Global.
TRANSACTION DETAILS
The Acquisition is expected to close on or before April 30, 2021, or such other date as may be
mutually agreed to by the parties (the "Closing Date"). Pursuant to the Agreement, on the Closing
Date, the Company will acquire a 51% equity inter est in the issued and outstanding common
shares of Arkin in exchange for 1,114,364 common shares of the Company (the “Consideration
Shares”) and an option to purchase 250,000 common shares of the Company (the
“Consideration Options”) entitling the holders to acquire an additional 250,000 common shares
of the Company (“Shares”) at a price per Share equal to the closing price of the Shares on the
last trading day prior to the Closing Date. The Consideration Options are exercisable for a period
of two years from the Closing Date.
The Consideration Shares and any Shares issued upon exercise of the Consideration Options
are subject to regulatory and voluntary pooling restrictions on resale in the following aggregate
amounts until the following dates: (a) 70% of the Consideration Shares and any Shares issued
upon exercise of the Consideration Options, shall be subject to restrictions on resale until the date
which is four months plus one day from the Closing Date; (b) an additional 10% of the
Consideration Shares and an additional 10% of any Shares issued upon exercise of the
Consideration Options, shall be subject to restrictions on resale until the date which is one -
hundred fifty (150) days from the Closing Date; (c) an additional 10% of the Consideration Shares
and an additional 10% of any Shares issued upon exercise of the Consideration Options, shall be
subject to restrictions on resale until the date which is one -hundred eighty (180) days from the
Closing Date; and (d) an additional 10% of the Considera tion Shares and an additional 10% of
any Shares issued upon exercise of the Consideration Options, shall be subject to restrictions on
resale until the date which is two -hundred ten (210) days from the Closing Date. 100% of the
Consideration Shares and any Shares issued upon exercise of the Consideration Options will
also be subject to a statutory hold period of four months and one day.
At the Closing Date, in connection with the Acquisition, the Company will issue 83,577 Shares,
equaling 7.5% of the Consideration Shares (the "Finder's Fee"). All Shares issued as part of the
Finder's Fee shall be subject to the same resale restrictions as the Consideration Shares as set
out above.
The Acquisition will not constitute a fundamental change for the Company and will not result in a
change of control of the Company (within the meaning of applicable securities laws and the
policies of the Canadian Securities Exchange).
ABOUT LYNX GLOBAL DIGITAL FINANCE:
Since inception, LYNX has focused on development and deployment of its proprietary online
marketplace platform. Integral to the true intent and directive of the long -term planning of these
development efforts was an early -stage technology agreement to allo w for integration of a
payment and financial technology platform to facilitate merchant sales within its online platform.
As such, since March 2017 the company has worked closely with payment technology providers
in South East Asia, to ascertain the pathwa ys to the greatest potential for future growth in the
world's fastest growing digital payment markets. With the existence of ever-evolving international
relationships with parties specifically focused on the facilitation of payment processing and bank
acquiring infrastructure, the Company saw potential to increase revenue over time with the
continued integration and utilization of complete payment processing capabilities within its online
marketplace solutions.
LYNX seeks to become a global leader in finan cial technology, solutions, and services for
merchants as it works hand in hand with select niche banking partners. LYNX intends to integrate
PCI certified payment solutions with its proprietary and proven online marketplace technology
platform to offer a truly comprehensive suite of products and services to serve B -to-B merchant
clientele. The Company has targeted banking relationships outside of North America, (specifically
in South East Asia), and by working with selected banking or licensed EMI partners, our solutions
may include merchant acquiring solutions; integrated payment solutions; global eCommerce
solutions; core processing and ancillary applications solutions; digital and online marketplace
solutions, including internet, mobile and eBanking; fra ud, risk management and compliance
solutions; electronic funds transfer and network services solutions; and/or card and online retail
payment solutions. The Company is focused on organic growth while investigating potential
strategic acquisitions, that may contribute critical technology applications, services and immediate
revenue streams that can complement or enhance our existing offerings and potentially increase
or expedite our path to future profitability. While LYNX believes that significant near -term
opportunities exist for the Company's solutions, there can be no assurance that customer
agreements will be reached or that such agreements will be profitable should they be
implemented.
For more information, please contact:
Michael Penner, CEO
(604) 396-9974
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES
PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY
OF THIS RELEASE.
FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute "forward -
looking information" under Canadian securities legislation, including with respect to the completion of the
Acquisition, the planned operations of the Company and any synergies created through the acquisition of
a 51% equity interest in Arkin, Arkin providing the Company with the “Australian digital currency exchange
and remittance licensing” to integrate into the L YNX pan-global financial ecosystem, LYNX becoming a
global leader in in financial technology, solutions and services for merchants and the ability of the Company
to grow organically or through strategic a cquisitions. Generally, forward -looking information can be
identified by the use of forward -looking terminology such as, "will be", or variations of such words and
phrases or statements that certain actions, events, or results "will" occur. Forward -looking statements are
based on the Company's estimates and are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance, or achievements of LYNX and Arkin
to be materially different from those expressed or implied by such forward -looking statements or forward -
looking information, including capital expenditures, other costs, or implied future forecasts. T here can be
no assurance that the acquisition of a controlling interest in Arkin will be completed on the terms described
herein, or at all. The Company further again cautions that all forward -looking statements are inherently
uncertain, and that actual performance may be affected by a number of material factors, many of which are
beyond the Company's control. Such factors include, among other things: risks and uncertainties relating
to the Company's limited operating history and the need to comply with gov ernmental regulations. There
can be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements and information. LYNX will not update any forward -looking
statements or forward-looking information that are incorporated by reference herein, except as required by
applicable securities laws.