MICT is hoping to tap the Chinese fintech market with the acquisition, for $26m, of a proprietary trading technology platform which is designed, it hopes, to serve a large number of high growth sectors. It will also be used to interface with platforms used by partners.
The platform comes as part of a wholly-owned subsidiary of Global Fintech and the deal was struck with around $26m of convertible securities (convertible into shares of MICT common stock). At the same time, MITC has approved a private placement of convertible notes of up to $15m, convertible into shares of MICT common stock at a conversion price of $1.10, consisting of $11m of committed funding, with the ability to raise an additional $4m on the same terms.
MICT says it is pursuing a strategy to provide a fintech trading platform that represents a ‘one-stop-shop’ full-service solution to B2C and B2B customers in China and other markets in the world.
It added that the core platform utilizes proprietary technology to deliver an intuitive and innovative user-experience, which can be white-labeled by strategic partners and also interface with other platforms already used by those businesses.
MICT said last year it was to move into the rapidly growing global fintech sector. It plans to deploy the new money to make more fintech related acquisitions and enter into partnerships. It is hoped that these will deliver immediate earnings growth and enhance long-term shareholder value, as well as to further develop GFH’s online platforms.
MICT will use its new platform to focus on primary areas, including online brokerage for equities trading and sales of insurance products in several foreign markets.
First stop is China, where MICT believes the significant growth in the country’s affluent class has driven a surge in demand for investment products and wealth management services. It thinks that this rapidly growing yet still nascent market offers a valuable opportunity for it to leverage its robust platform to serve Chinese investors who seek to participate in both their domestic financial market and in the established markets of London, New York and Hong Kong.