Xigem Technologies (CSE:XIGM) Corporation revealed that it has sucessfully completed the previously announced acquisition of cloud-based, peer-to-peer payment app FOOi through a $500,000 all-stock deal.
Under the terms of the agreement, the Toronto-based technology company has acquired substantially all the assets of FOOi Inc for $500,000 through the issuance of 1,666,667 Xigem shares at a deemed price of $0.30 per share.
"FOOi is an easy-to-use and low-cost app that is well suited to small-to-medium enterprises, foundations and individuals wishing to complete payment transactions remotely,” Xigem co-founder and CEO Brian Kalish said in a statement. “We are pursuing opportunities to integrate it with our iAgent platform as well as other technologies planned for our portfolio."
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FOOi is a mobile app that facilitates digital payments through peer-to-peer and peer-to-business financial transactions. Users can "share money in the moment," said the company, by “opening the app and tapping on the person or organization to whom they would like to transfer funds.”
FOOi features a simplified sign-up process, allowing users to complete transactions within minutes of installation by quickly and securely connecting credit cards and debit cards to their FOOi accounts.
“Integrated with iAgent, Xigem's platform technology, FOOi can create a unique environment for the company's clients and their users,” the company said, adding that it expects FOOi to become a “valuable asset to iAgent” as it completes "the circle of functionality and enhances its customer relationship management effectiveness."
The mobile payment market was valued at $1.48 trillion in 2019 and is expected to blow past $12 trillion by 2027, representing an average growth rate of 30% from 2020 to 2027, according to Allied Market Research. The growth will be driven by smartphones, mobile commerce, and a desire for contactless payments due to the coronavirus (COVID-19) pandemic.
The vendor has agreed to use proceeds from the sale of the consideration shares to buy a secured, interest-bearing note from Baron Auto Group (BAG). BAG, a growing non-prime lender in the Canadian automobile market, is expected to be a Xigem customer, where it would use both iAgent and potentially the FOOi technology.
Kalish is also the interim CEO of BAG, but not a shareholder, and receives no compensation from BAG, pointed out the company. To mediate the conflict of interest created by Kalish's role, he abstained from voting on the approval of the letter of intent, said the company.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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