Lynx Global to acquire BRB’s majority shareholder Ausphil Technologies

The combined management teams of BRB, Lynx and Group Tiu envision an active mutual collaboration that will provide for the operation of an ‘inclusive global digital financial network’.

VANCOUVER: Lynx Global Digital Finance Corporation (CNSX: LYNX) has entered signed memorandum of understanding for the acquisition of Ausphil Technologies Pty. Ltd.

Ausphil, an Australian private company, holds a 52.15% shareholding 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.

Lynx Global 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 inthe 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 31Banks, 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.”

Pursuant to the MOU, Lynx has agreed to issue an aggregate of 2,119,914 common shares to the current shareholders of Ausphil, on a pro rata basis, with a value of $1.738 million in addition to cash payments of $565,600 on closing, and an additional $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, 1.5 million share purchase warrants entitling the holders to purchase an additional 1.5 million common shares of Lynx 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 $1.136 million.

LYNX share price

1.30 CAD +0.030 (2.36%)

13 May, 12:26 pm GMT-4 · Disclaimer

Leave a Reply

Your email address will not be published. Required fields are marked *