MICT Revises Merger Terms With Tingo

MICT Revises Merger Terms With Tingo
  • MICT, Inc MICT forged a new merger agreement with Tingo Inc TMNA to acquire 100% of the operating business and assets of Tingo.
  • Tingo is a Fintech and Agri-Fintech business on the African Continent.
  • In May, the companies agreed to merge and consolidate their operations to create a Fintech and Agri-Fintech company serving the African and Asian markets with a global expansion strategy.
  • MICT expects the new merger structure to lead to a number of significant and immediate benefits.
  • The purchase consideration involves shares of MICT (representing 19.9% of its outstanding shares), shares of a newly-formed Series A Convertible Preferred Stock convertible into an additional 20.1% of the stock, and shares of a newly-formed Series B Convertible Preferred Stock convertible into an extra 35% of the stock.
  • Tingo would own 75% of MICT's common stock after the transaction.
  • The new merger structure will help expedite the launch of Tingo's food-produce export business benefiting from several high-margin and material export contracts that will shift a substantial part of Tingo's revenues directly into U.S. dollars. 
  • The transaction also accelerates the development and launch of Tingo's commodity platform and commodity trading business.
  • In the first half of 2022, Tingo's operating business reported revenue of $525.7 million, gross profit of $317.4 million, and net income before tax of $298.4 million. 
  • Tingo's operating business results for the fourth quarter and second half of 2022 will likely benefit significantly from several new business streams.
  • Price Action: MICT shares traded higher by 3.19% at $0.6298 on the last check Friday.

 

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