Logiq Inc. (NEO:LGIQ.AQN, OTCQX:LGIQ) announced it has completed the transfer of its AppLogiq assets into Lovarra, a fully reporting US public company.
The transfer completes the previously announced separation of Logiq’s DataLogiq and AppLogiq businesses into two publicly traded companies.
The AppLogiq 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.
READ: Logiq finalizes agreement to transfer AppLogiq assets into publicly-traded subsidiary
AppLogiq also includes platforms for mobile payments and delivery services designed for emerging markets, as well as licenses of its technologies to industry partners.
Logiq said it will continue to maintain its control position in Lovarra/GoLogiq until it distributes 100% of its shares to Logiq’s shareholders of record on December 30, 2021 - planned to occur about six months from now.
Until then, Logiq will report consolidated financial results for both companies. DataLogiq will continue to be a wholly owned business of Logiq following the distribution, and Logiq common shares will continue to trade on the OTCQX Market and NEO exchange; no action is required of shareholders.
“Given how AppLogiq and DataLogiq focus on different high-growth e-commerce market segments, we expect this separation into two ‘pure-play’ publicly traded companies to unlock new opportunities, and value for our shareholders,” said Logiq CEO Brent Suen in a statement.
“Each of these businesses now have a sharper focus, dedicated management teams, and greater flexibility to pursue new business and strategic opportunities in their respective markets. This includes e-commerce consumer acquisition in the U.S. for DataLogiq, and fintech/m-commerce optimized consumer accessibility for AppLogiq and its B2B customers in emerging markets.”
M&A opportunities
Lovarra/GoLogiq’s new CEO, Matthew Brent, who previously headed up the AppLogiq business for Logiq, said there’s a potentially substantial step up in valuation for AppLogiq as a standalone entity increasing its strategic and M&A opportunities.
“We have already identified several M&A prospects that could add complementary technology and strong revenue streams to GoLogiq, extending our presence across Southeast Asia and into other global emerging markets,” Brent said. “Through M&A and organically, we expect to aggressively strengthen GoLogiq in terms of both assets and revenues, in the first half of 2022 prior to the planned shares distribution.”
Furthermore, Logiq said it next plans to transfer to Lovarra/GoLogiq its 31% beneficial stake in PT Weyland Indonesia Perkasa (WIP) -- the operator of the AtozGo food delivery service and AtozPay mobile e-wallet in Southeast Asia, which uses mobile transaction technology licensed from Logiq.
The transfer is subject to the completion of related financial statements and customary conditions and approvals, which are expected to be completed in the first quarter of 2022. Subsequently, Lovarra/GoLogiq plans to acquire the remaining 69% stake in WIP.
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