Business
FDCTech Completes Transformative Acquisition of Genesis Financial, Inc.
FDCTech Completes Transformative Acquisition of Genesis Financial, Inc..
About this update from Fdctech, Inc.
[{"type":"text","content":"\n The acquisition of Genesis Financial is a step-change in creating a diversified global financial services company with annualized revenue of $15 million and well-positioned for long-term growth through FDCTech's proprietary Condor trading infrastructure, complementary multi-jurisdiction regulatory licenses, proven executive team, and pipeline of potential acquisitions. Irvine, CA, June 07, 2021 (GLOBE NEWSWIRE) -- FDCTech, Inc. (\"FDC\" or the \"Company,\" OTCQB: FDCT), a fintech company with a full suite of digital financial services solutions, today announced that it had entered into a purchase agreement (\"Agreement\") under which the Company will acquire up to 100% equity interest in Genesis Financial, Inc. (\"GFNL\") in a stock-for-stock transaction. Under the terms of the Agreement, GFNL shareholders will receive 70,000,000 shares of the Company, representing an equity value of approximately $35 million based on a $0.50 per share price. The board of directors of each of the Company and GFNL has approved the transaction. Accordingly, the GFNL board recommended that GFNL stockholders approve the transaction and adopt the merger agreement effective June 2, 2021. The GFNL stockholders voted all of GFNL shares in favor of the transaction at the special meeting. Under the Agreement, the Company entered into a voting agreement with certain stockholders of GFNL common stock. Accordingly, the GFNL shares subject to the Agreement represent approximately 96% of the current outstanding equity interest and voting power of the GFNL common stock. The acquisition highlights include but not limited to: Topline growth with annualized forecasted revenue run-rate of over $15 million in fees from wealth management and tax/accounting advisory business. Advising $540 million funds under advisement (FUA) and managing $62 million funds under management (FUM) through approximately 114 licensed advisers and implementing the digital platform. Access to the Australian Financial Services License (AFSL) enables the Company to provide a wide variety of financial services, including but not limited to financial product advice for various asset classes and deal in financial products with retail and wholesale clients. Access to the Australian Credit License (ACL) enables the Company to provide aggregator, mortgage, and finance broker services for various...