FDCTech, Inc. (OTCMKTS:FDCT) is trading with a double digits rally on Monday. The stock has been witnessing a nice uptrend since last month with a jump of 110% in 5-week. Will the Rally continue?
FDCTech Completes Transformative Acquisition of Genesis Financial, Inc.
- today announced that it had entered into a purchase agreement (“Agreement”) under which the Company will acquire up to 100% equity interest in Genesis Financial, Inc. (“GFNL”) in a stock-for-stock transaction.
- Under the terms of the Agreement, GFNL shareholders will receive 70,000,000 shares of the Company, representing an equity value of approximately $35 million based on a $0.50 per share price. The board of directors of each of the Company and GFNL has approved the transaction.
- Accordingly, the GFNL board recommended that GFNL stockholders approve the transaction and adopt the merger agreement effective June 2, 2021. The GFNL stockholders voted all of GFNL shares in favor of the transaction at the special meeting.
- Under the Agreement, the Company entered into a voting agreement with certain stockholders of GFNL common stock. Accordingly, the GFNL shares subject to the Agreement represent approximately 96% of the current outstanding equity interest and voting power of the GFNL common stock.
- The acquisition highlights include but not limited to: Topline growth with annualized forecasted revenue run-rate of over $15 million in fees from wealth management and tax/accounting advisory business.
- Advising $540 million funds under advisement (FUA) and managing $62 million funds under management (FUM) through approximately 114 licensed advisers and implementing the digital platform.
Key Quote from
“We are pleased to achieve this transformative milestone for the Company, its employees, shareholders, and the clients we serve,” said Mitchell M. Eaglstein, Co-Founder and CEO, FDCTech.
Market Reaction: Stock Soars
As of 11:34, FDCT stock moved up by 10% to $0.38 with more than 1.79 million shares traded hands, well above its average volume of 78K shares. The stock has moved within a range of $0.3001 – 0.4700 after opening the trade at $0.3750.