Business
Goldmoney Inc. Announces Sale of Schiff Gold LLC and Intention to Cancel Securities
Toronto, Ontario--(Newsfile Corp. - September 26, 2023) - Goldmoney Inc. (TSX: XAU) (US: XAUMF) (...
About this update from Goldmoney Inc.
[{"type":"text","content":"Goldmoney Inc. Announces Sale of Schiff Gold LLC and Intention to Cancel SecuritiesToronto, Ontario--(Newsfile Corp. - September 26, 2023) - Goldmoney Inc. (TSX: XAU) (US: XAUMF) (\"Goldmoney\" or the \"Company\"), today announces that it has signed a binding term sheet (the \"Term Sheet\") with PDS Family Hycet Trust (the \"Purchaser\") to sell all of its membership interest in its wholly-owned subsidiary, Schiff Gold LLC. (\"SGL\").Pursuant to the Term Sheet, the Purchaser will exchange 212,600 common shares of Goldmoney (the \"Goldmoney Shares\") and 280,000 common share purchase warrants of Goldmoney (the \"Goldmoney Warrants\" and, together with the Goldmoney Shares, the \"Goldmoney Securities\") in consideration for all of Goldmoney's membership interests in SGL (the \"Transaction\"). The Goldmoney Shares shall have a deemed value of approximately CAD $1,798,596 (equivalent to CAD$8.46 per share for 212,600 Goldmoney Shares). The Goldmoney Warrants were issued in tranches of 140,000, 70,000 and 70,000, with exercise prices of $25.00, $27.50 and $33.75, respectively, and an expiry date of November 14, 2026. The Goldmoney Securities are currently held by the Purchaser and were issued when Goldmoney acquired SGL in 2016.The Transaction will be subject to additional closing conditions which are to be enumerated in a subsequent definitive agreement between Goldmoney and the Purchaser. Upon completion of the Transaction, Goldmoney intends to cancel the Goldmoney Securities (the \"Cancellation\").\"Since November of 2022, the Board of Directors has been reviewing strategic options for Schiff Gold that would allow Goldmoney to focus on its core business strategy of generating sustainable earnings per share. Following this strategic review, we have made the decision to return the business to Peter Schiff, from whom we acquired it in 2016, and Peter has agreed to return to Goldmoney the securities which were originally issued to him at that date. We believe this decision will further simplify our operating structure and provide shareholders with a better understanding of our long-term economic results.\"\"It has been a unique pleasure to work closely with Peter as well as the employees at Schiff Gold over the past 7 years and we remain open to future potential synergies between the two companies that may benefit from our technologic...