Logiq Inc. (NEO:LGIQ.AQN, OTCQX:LGIQ), a provider of e-commerce and fintech business enablement solutions, told investors it has finalized the terms of its agreement to transfer its AppLogiq assets into Lovarra, which it plans to do before the end of the year.
It said the agreement follows its recent acquisition of a controlling position in Lovarra, a fully reporting US public company listed on the OTC Markets.
The agreement advances its announced plans to separate its DataLogiq and AppLogiq businesses into two independent publicly traded companies, the company added.
READ: Logiq advances separation of AppLogiq and DataLogiq with acquisition of fully-reporting publicly-traded company for AppLogiq
Logiq said it is also applying to the Financial Industry Regulatory Authority (FINRA) to change Lovarra’s name to GoLogiq and obtain a new trading symbol, which is likely to take several weeks.
Logiq shareholders of record on December 30, 2021, will receive shares in Lovarra/GoLogiq on a proportionate basis when it distributes 100% of its Lovarra/GoLogiq shares to these shareholders, the company said, adding that distribution is planned for on or about June 30, 2022.
“We believe this separation will enable both of these business segments to better capitalize on their respective growth opportunities in the rapidly expanding e-commerce and fintech landscape,” Lovarra/GoLogiq CEO, Matthew Brent said in a statement.
“Our analysis of public market valuations and private equity funding for fintech companies operating in emerging markets indicates our standalone valuation at $100 million or more. This is before any potential M&As we expect to complete over the near term,” he added,
AppLogiq's assets include CreateApp, an award-winning software-as-a-service (SaaS) platform that enables small and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business. AppLogiq also includes platforms for mobile payments and food delivery and the licenses of its technologies to third parties.
Logiq also plans to transfer to Lovarra/GoLogiq its 31% beneficial stake in PT Weyland Indonesia Perkasa (WIP). WIP is the operator of the AtozGo food delivery service and AtozPay mobile e-wallet in Southeast Asia, which uses mobile transaction technology licensed from Logiq.
It said the transfer of WIP is subject to the completion of related financial statements and customary conditions and approvals, which is expected to be completed by February 2022. Lovarra/GoLogiq plans to acquire the remaining 69% stake in WIP within the same timeframe.
The company said the separation of DataLogiq and AppLogiq has attracted the attention of several potential strategic partners and customers.
“We are now looking at several companies that could add complementary technology and strong revenue streams, and which could extend our presence across Southeast Asia,” Brent added.
Logiq recently reported a record revenue month in November, with this reflecting the company’s refocus on higher margin and more profitable revenue streams. It said its gross margin percentage has improved every quarter of this year.
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