MICT, Inc (NASDAQ:MICT) forged a new merger agreement with Tingo Inc (OTC: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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Friday, October 07, 2022