MICT Raises $25M Private Placement of Convertible Notes

11/8/19

MICT, Inc. (Nasdaq: MICT), announced today that it has agreed to close on a $25 million private placement of convertible notes, converting automatically at $1.41 per share at the closing of an acquisition by the company of Global Fintech Holdings Ltd (GFH), which acquired the ParagonEX Limited group of companies and the trading companies of BNN Technology PLC.

This $25 million funding, together with $7.25 million raised recently, substantially improves MICT's balance sheet, permitting the Company to support its growth strategy of diversifying into the global fintech industry, with the aim of unlocking substantial shareholder value. The acquisition of GFH gives MICT ownership of world-class proprietary technology platforms in the fintech arena, as well as access to the rapidly expanding Chinese fintech marketplace. GFH is well positioned to become a major player in several verticals in China, as well as an acquirer in the consolidating online CFD (Contracts for Differences) trading industry. This dual faceted growth strategy offers MICT's shareholders an opportunity to benefit from accelerated growth of the group.

Through its newly acquired subsidiaries, GFH is already a successful and profitable business, providing its platforms within the financial trading and Contracts for Difference (CFD) sectors in Europe, the Middle East, and Asia. GFH expects over the coming months to implement its program to acquire substantial revenues of significant players in the sector, resulting in rapid growth and the contribution of significant profitability to the MICT group.

Upon closing of the merger, the combined MICT group is expected to have a strong balance sheet with over $25 million of cash, enabling the Company to pursue a revenue acquisitions program and to materialize significant fintech opportunities in China.

David Lucatz, CEO of MICT, said, "We strongly believe that our strategic decision to diversify into the fintech space will contribute very positively to value for our present and future shareholders. The funding raised enables us to acquire GFH, a very exciting fintech company with world class technological assets, operational management and significant profitability. The combination of strong cash reserves and abundant opportunities will facilitate substantial earnings growth for the Company."

Darren Mercer who recently joined the Board of MICT and is a director and officer of GFH, added, "The opportunity to be a part of the MICT group is a very exciting proposition for us. The GFH group of companies brings to MICT a suite of world-leading technology platforms that are product-agnostic and can support all our new ventures within the fintech space, be they through acquisition or through organic growth, including in the very significant Chinese marketplace. Supported by MICT's strong balance sheet and our combined cash resources, we believe it is a very exciting time for all new and existing MICT shareholders."

About MICT, Inc.

MICT, Inc. (NasdaqCM: MICT) operates through Micronet Ltd. ("Micronet"), a former subsidiary, in which the Company previously held a majority ownership interest that has since been diluted to a minority ownership interest. Micronet operates in the growing commercial Mobile Resource Management (MRM) market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments.

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