Lynx Global to Acquire Controlling Interest in Philippine Based Bank
Lynx Global to Acquire Controlling Interest in
Philippine Based Bank
Vancouver, British Columbia--(Newsfile Corp. - May 13, 2021) -
Lynx Global Digital Finance
Corporation (CSE: LYNX) (OTC Pink: CNONF) (FSE: 3CT0) ("Lynx" or the "Company")
is
pleased to announce it has entered into a memorandum of understanding (the "
MOU
") for the acquisition
of 100% of the issued and outstanding shares of Ausphil Technologies Pty. Ltd. ("
Ausphil'
), an
Australian private company, that holds a 52.15% equity interest in Binangonan Rural Bank Inc. ("
BRB
"),
a Philippine based company that has operated in the banking sector since October 1961. As at the date
of this news release the Company has now completed its due diligence assessment and will now make
every effort to close the acquisition, at/before May 28, 2021.
"This acquisition represents a cornerstone investment that will be combined with our recently acquired
controlling interests in Direct Agent 5 Inc. and Arkin Technologies Pty. Ltd., companies that hold
remittance licenses in the Philippines and remittance and cryptocurrency licenses in Australia. These
components along with our partnership with a Major Payment Institution license holder in Singapore, is
enabling us to build an end-to-end digital payment platform in the ASEAN and Oceanic
region," stated
Mike Penner, President & CEO, Lynx Global.
"The addition of a licensed bank with an Electronic Money Issuer license to our Lynx financial ecosystem
now enables us to offer a complete suite of payment and financial services to domestic and international
enterprises," he continued.
The Company further reports, Mr. Antonio L. Tiu along with a number of his owned or affiliated
companies, ("Group Tiu"), entered into a separate memorandum of understanding with BRB dated
March 23, 2021, to acquire the remaining 47.85% equity interest of BRB. Mr. Antonio L. Tiu is a highly
respected Philippines Agri-entrepreneur who in 2019 ranked in the Top 50 Richest on the 'Forbes
Philippines list.
The combined management teams of BRB, Lynx and Group Tiu now envision an active mutual
collaboration that will provide for the operation of an '
inclusive global digital financial network'
that
connects the developed world to the unbanked and the emerging markets.
This direct business
relationship between Lynx and Group Tiu will now enable each to use the existing BRB bank
infrastructure and Electronic Money Issuer (EMI) licensing status in the Philippines to act as the lynchpin
for the deployment of a new financial technology-based ecosystem to service the Global digital
commerce market that McKinsey forecasts will grow at an annual rate of 22% per year to reach $15.3
trillion by 2023.
Mike Penner, further stated, "This working relationship with Group Tiu provides the initial building blocks
behind what is to be recognized as a unique and powerful intersection of digital financial services and
traditional banking architecture.
We are excited about the pivotal role that BRB and Group Tiu will play in
the formation of our distinctive and inclusive digital financial technology platform.
We couldn't ask for a
better partner in the ASEAN region, than Mr. Antonio Tiu, to work alongside us to achieve our collective
vision."
As reported by the
Associated Press, Nikkei, Japan, staff writer Mikhail Flores
, "
Philippine rural banks
provide a most strategic cost-effective pathway for Fintech providers to enter the Philippines, ASEAN,
and overall global financial marketplace.
The central bank has so far granted e-money licenses to 31
Banks, including four rural banks: Cebuana Lhuillier Rural Bank, CARD Bank, Dungganon Bank and
Binangonan Rural Bank
.
Under the country's liberalized banking laws,
foreign companies are
allowed full ownership of Philippine financial institutions
. "The entry of foreign investors in banks would
contribute to the promotion of a healthy competition in the banking industry, resulting in greater
market penetration and more efficient delivery of financial products and services
," said Benjamin
Diokno, the central bank governor."
About Group Tiu
Group Tiu is made up of not only a number of private ventures but also the publicly traded companies
ANI, GREEN, and IRC in the Philippines, covering sectors that offer progressive cutting-edge solutions
for agriculture, banking, fintech, infrastructure and environmental services.
Mr. Tiu founded his business
enterprises throughout the Philippines to create financial profitability through consideration of corporate
social responsibility, to effectively forge local and international partnerships for sustainable growth, and
so as to adopt innovative technology and processes to ensure overall success. Group Tiu has recently
focused significant attention towards FinTech in particular, seeking out new age solutions that offer
access to Virtual Currency Exchange and E-Wallet, each of which can support the fulfillment of its
desires to create and service an Agricultural Finance Ecosystem for the entirety of the Philippines under
"1ANI Ecosystem".
Tiu's
listed company AgriNurture, Inc. "ANI", was recently granted by CICERO a
medium green rating and was given an ASEAN green bond rating by SEC to issue a 75M euro green
bond offering in the EU.
ANI has recently entered into a Memorandum of Understanding (MOU) in the Philippines with each of the
Department of Agriculture (DA) and the Authority of Freeport Area of Bataan (AFAB) to launch the '1DA
- 1Bataan - 1ANI' Agri Digitalization Program via the Bataan Freeport.
The tripartite agreement paves
the way for the rollout of a blockchain-based platform for trading agricultural produce and virtual
currencies globally. The aim is to facilitate financial inclusion of Agri stakeholders, especially unbanked
Filipino farmers and fisherfolk, through a regulated financial technology platform and licensed virtual
currency. The proposed 1ANI e-commerce platform, a financial technology (FinTech) ecosystem, would
allow local farm input requirements and output to be traded using virtual currencies and opens up
financing and trading opportunities to institutional buyers and foreign investors residing outside the
Philippines, said ANI president and CEO Antonio Tiu.
Transaction metrics
Pursuant to the MOU, Lynx has agreed to issue an aggregate of 2,119,914 common shares of the
Company ( the "
Consideration Shares
") to the current shareholders of Ausphil, on a pro rata basis,
with a value of USD$1,738,329, in addition to cash payments of USD$565,600 on closing (the "
Closing
Date
"), and an additional USD$86,250 due December 31, 2021. At the Closing Date, Lynx has also
agreed to grant to the shareholders of Ausphil, on a pro rata basis, 1,500,000 share purchase warrants
(the "
Consideration Warrants
") entitling the holders to purchase an additional 1,500,000 common
shares of Lynx ("
Shares
") at a price per Share of $1.24. The Consideration Warrants will expire 24-
months from the date of issuance.
In addition, Lynx has agreed to purchase debt owing by Ausphil to certain creditors, in the aggregate
principal amount of USD$1,136,496, through the issuance of 1,057,861 common shares of the
Company (the "
Debt Consideration Shares
") and cash payments of USD$276,667, due 30 days
following the Closing Date.
The Consideration Shares, Debt Consideration Shares and any Shares issued upon exercise of the
Consideration Warrants will be subject to regulatory and voluntary pooling restrictions on resale in the
following aggregate amounts until the following dates: (a) 65% of the Consideration Shares, Debt
Consideration Shares and any Shares issued upon exercise of the Consideration Warrants, shall be
subject to restrictions on resale until the date which is four months plus one day from the Closing Date;
(b) an additional 15% of the Consideration Shares and Debt Consideration Shares and an additional
15% of any Shares issued upon exercise of the Consideration Warrants, shall be subject to restrictions
on resale until the date which is 6 months from the Closing Date; (c) an additional 10% of the
Consideration Shares and Debt Consideration Shares and an additional 10% of any Shares issued
upon exercise of the Consideration Warrants, shall be subject to restrictions on resale until the date
which is 9 months from the Closing Date; and (d) an additional 10% of the Consideration Shares and
Debt Consideration Shares and an additional 10% of any Shares issued upon exercise of the
Consideration Warrants, shall be subject to restrictions on resale until the date which is 12 months from
the Closing Date. 100% of the Consideration Shares, Debt Consideration Shares and any Shares
issued upon exercise of the Consideration Warrants will also be subject to a statutory hold period of four
months and one day.
Finders' fees may be payable in connection with the transaction in accordance with the policies of the
Canadian Securities Exchange
.
The securities to be issued have not and will not be registered under the
U.S. Securities Act of 1933, as amended, or any state securities laws. The completion of the transaction
is subject to certain conditions, including the execution of definitive documentation, all necessary
regulatory and shareholder approvals, and other customary closing conditions.
The Company further announces the issuance of 250,000 common shares at a price of $1.00 per
common share to a service provider in respect of the provision of various services, including but not
limited to marketing and media/social media advisory services, creation and production. The common
shares issued today are subject to a statutory four-month hold period in accordance with the policies of
the Canadian Securities Exchange, which will expire on September 14, 2021.
ABOUT LYNX DIGITAL GLOBAL FINANCE:
Lynx seeks to become a leader in financial technology, solutions, and services for large-scale
merchants, financial institutions and other B2B industry partners by way of integration to the Lynx digital
payment platform. The Company's payment solutions are powered by a broad suite of payment
technologies and services. The Company has targeted banking and fintech relationships in South East
Asia and Oceania, a region with a population of greater than 650 million. By working with selected
banking and/or licensed EMI partners, the Company will be able to offer a digital payment platform with a
full suite of payment solutions, which may include merchant acquiring solutions; card issuing; remittance
and forex; and custodial digital asset services, including digital wallet services. The Company seeks
organic growth while investigating potential strategic acquisitions that may contribute critical technology
applications, additional services and revenue streams, and that can complement or enhance existing
offerings and potentially increase or expedite the path to future profitability. While Lynx believes that
significant near-term opportunities exist for the Company's strategic initiatives, there can be no
assurance that goals and objectives will be reached or that any such underlying efforts or agreements will
provide successful or positive outcomes should they be implemented.
For more information, please contact:
Michael Penner, CEO
(604) 396-9974
www.lynxglobal.io
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 the revenue projections of BRB and
the goals and objectives of Lynx. 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 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. 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 environmental and governmental 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/83908