Market Overview

Digiliti Money Rejects Lifeline from Urban FT


Urban FT, Inc., the industry leading SaaS-based digital banking
platform, confirms that its negotiations with the troubled NASDAQ-listed
Digiliti Money Group, Inc. (NASDAQ:DGLT) abruptly came to an end late
last night when DGLT formally rejected the lifeline being offered by
Urban FT.

Following Urban FT's initial offer to the Board of DGLT on August 15 and
subsequent to initial due diligence revealing DGLT's actual financial
position, Urban FT submitted a new offer which, if accepted by DGLT,
would have been binding on Urban FT. The binding term sheet and the
accompanying loan instruments delivered by Urban FT valued DGLT at
$10,500,000 on a net equity basis. The offer provided that Urban FT
would deliver DGLT and its subsidiary with an immediate line of credit
that would enable DGLT to meet all current and ongoing working capital
requirements, including its upcoming payroll obligations due at the end
of the month. It would also have seen all customer services maintained
without service interruption, all remaining employees retained and all
creditors receiving 100 cents in the dollar.

For reasons not clear to Urban FT, DGLT, via its advisors at Lake Street
Capital Markets, proposed alternate terms and stood firm on those terms,
which Urban FT and its attorney considered unreasonable and unacceptable
under the circumstances. The Board of DGLT said DGLT was not willing to
negotiate its position and, in an email, noted that "we are too far off
at this point" for a deal to be concluded in the timeframe DGLT is
working toward.

Kasey Kaplan, Urban FT president, said "The Digiliti business is
fundamentally good one, with good staff, good technology and good
clients." He added: "We will leave our offer on the table for acceptance
by Digiliti until close of business on August 31. We ensured that our
offer took into consideration all SEC and NASDAQ requirements for a
transaction like this, and I hope the Digiliti Board concludes that our
offer is the most fair, equitable and reasonable option for the various
stakeholder groups, whom they—as directors—are meant to adequately and
diligently represent as part of their fiduciary duty.

"Placing Digiliti into bankruptcy, if that's what the Board is
considering," continued Kaplan, "would be a great loss to all of those
stakeholders and would truly disrupt so many organizations that rely on
Digiliti's services every day."

Urban FT is a SaaS-based digital payments platform that enables any
brand to seamlessly launch a branded Mastercard or Visa card, lifestyle
mobile app and Web solution to complement its core business. We give
brands a complete platform to enhance every element of the
customer/brand relationship, leveraging what they're doing today by
adding a financial services framework, built on our unique understanding
of driving the customer journey. Our platform enables brands--including
75 financial institution clients in addition to nonbank clients,
representing leading national brands in telecommunications, insurance
and travel--to uniquely engage their customers, adding value by
deepening and expanding how and when customers interact with the brand.

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