Cuentas paid $750k and was granted an option to purchase the remaining 80.01% for $2.46 million
MIAMI, FL / ACCESSWIRE / June 2, 2022 / Cuentas, Inc. (NASDAQ:CUEN & CUENW) ("Cuentas"), a leading fintech provider of mobile financial app and payment solutions has completed the acquisition of 19.99% of Cuentas SDI LLC, owner of SDI Black011 assets. Cuentas paid $750,000 for the minority stake in the company with the ability to acquire the remaining 80.01% within the next 90 days for $2.46 million.
SDI is a leading prepaid portal and digital provider with a nationwide retail distribution network which produced revenue over $8.2 million in 2021. The purchase agreement gives Cuentas a 40% share of all revenues generated by Cuentas SDI during the upcoming 90 day period and 20% if its equity position remains the same.
"Cuentas has already begun leveraging the 31,600 bodegas and convenience stores as well as the proprietary platform," said Cuentas CEO Jeff Johnson. "This purchase will continue to support growth of our fintech offerings and expand the reach of the Cuentas GPR debit card and digital wallet."
The SDI-Cuentas brands already have a large database of subscribers who purchase services, via the Black011.com website and digital portal. This allows Cuentas to tap into one of the largest distribution channels for prepaid wireless services and digital content in the US.
As part of the due diligence process, the SDI Black011 asset valuation was set at $6.6M. Cuentas retains the option to purchase the remaining 80.01% of all assets within the next 90 days. Cuentas is studying the possibility of upgrading a select number of prime bodega locations to offer POS systems with enhanced financial services.
Cuentas, Inc. (NASDAQ:CUEN & CUENW) is a fintech e-finance and e-commerce service provider with proprietary technology that delivers digital financial services to the underbanked and un-banked Hispanic, Latino and immigrant populations including mobile and financial services, prepaid debit card, ACH and mobile deposits, cash remittance, peer to peer money transferring, and other services. The Cuentas General Purpose Reloadable (GPR) Card includes a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content. For more information, visit https://cuentas.com.
This news release contains "forward-looking statements," as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as "believe," "plan," or "expect" or similar statements are forward-looking statements.
SOURCE: Cuentas, Inc.