Acquisition Provides Direct Distribution for Company’s CUENTAS and MIO Products Through Fisk Holdings LLC’s Network of More Than 30,000 Retail Locations.
Next Group Holdings, Inc. announced on August 24, 2017 that the Company has signed a Letter of Intent with Fisk Holdings LLC, a New York corporation, to acquire 51% of SDI NEXT Distributions LLC, to be comprised of Fisk Holdings’ established distribution business for third-party physical gift cards, mobile top up, financial services and content, which presently includes more than 30,000 U.S. retail locations, including store locations, convenience stores, bodegas, store fronts, etc. Upon completion, the acquisition will provide immediate Third Party Physical Gift Card distribution on a consignment basis to the stores, for the Company’s recently announced CUENTAS and MIO virtual mobile banking solutions aimed at unbanked and underbanked consumers, making them available to consumers at the more than 30,000 retail locations Fisk Holdings presently serves. This will immediately enable these distributors to add all the top selling U.S. Physical Third Party Gift Card brands, on a consignment basis with first usage activations.
To facilitate sales and reloads of CUENTAS and MIO at the retail level, as part of Next Group Holdings’ agreement with InsightPOS, SDI NEXT will enable these locations with interactive POS Point of Sale system or Portal web based platform. In so doing, the Company will enhance the sales efforts of retail stores, while providing more services and benefits to consumers.
Our collective group and related parties currently has rights to a database of approximately 8,800 active retail stores that sell prepaid telecommunications products, and this acquisition will bring that total to approximately 39,000 locations, nearly 40% of the estimated 95,000 single store operator convenience stores (bodegas/convenient stores) in the U.S (source: U.S. Department Of Agriculture Food and Nutrition Service FNS-621 June 2016).
“This acquisition opens the door for an immediate and broad-based launch for our GPR (General Purpose Reload), MIO prepaid and CUENTAS virtual banking card programs,” said Arik Maimon, CEO, Next Group Holdings, Inc. “In combination with our previously announced letters of intent to acquire plastic/paper debit, credit and gift card industry leader AZUGROUP and global telecommunication leader Limecom, this merger of interests with Fisk Holdings LLC means that upon launch, CUENTAS and MIO will have immediate shelf space in more than 30,000 retail locations”.
Added Sohel Kapadia, CEO, Fisk Holdings LLC, “Our vast customer base throughout the U.S. are individuals for whom gift cards, mobile top up and international calling cards are part of daily life. Our customers – the growing population of Latinos in this country who are largely unbanked, underbanked and financially underserved – are exactly the people who are likely to embrace these new virtual banking financial products in our stores.”
Created for consumers mostly concentrated within the country’s Hispanic population, CUENTAS, un banco de gente (a bank of people), recognizes the needs of the estimated 103 million unbanked/underbanked/financially underserved individuals in this country (source: Center for Financial Services Innovation). Remittances to Mexico from people living abroad reached a record 7 billion in 2016, according to the Wall Street Journal (2/1/17). Simultaneously with the launch of CUENTAS, NXGH will launch MIO, a single-use prepaid Gift Card platform that can also interface with a consumer’s CUENTAS account, making for a banking solution that is seamless and all-encompassing.
Based on https://finance.yahoo.com article