Next Group Holdings, Inc. (NXGH) has signed a binding Definitive Agreement to acquire global telecommunication company, Limecom Inc. The Definitive Agreement replaces the Letter of Intent to acquire Limecom that was announced on May 16, 2017. Upon completion of the acquisition, Limecom Inc. will become a wholly-owned subsidiary of NXGH, with projected revenues in excess of $125 million for 2017, and net profit projected at $2.5 million.
The acquisition is scheduled to be completed by the end of September 2017, contingent upon NXGH‘s receipt of Limecom‘s Auditors Opinion. The purchase price is based on Limecom Inc. posting revenues of at least $125 million for 2017, with net profit for the same period in excess of $2.5 million. Under terms of the agreement, Limecom Inc. parent company Heritage Ventures Ltd. will receive a purchase price of $2 million plus 51.8 million shares of NXGH common stock. At time of completion, Heritage Ventures Ltd. will receive 41.44 million shares of NXGH common stock, 80% of the total common stock included in the purchase price of Limecom Inc. The remaining shares (10.36 million, or 20% of total included in the purchase price of Limecom Inc.), along with $2 million, will be delivered approximately eight months after completion of the acquisition, with the overall purchase price prorated should Limecom Inc. revenues and/or net profit fall short of projected performance.
“In addition to the boost to revenue and profit that this acquisition will provide NXGH, Limecom will now become an integral part of our GPR (General Purpose Reload), MIO prepaid card and CUENTAS virtual banking programs, and those are the future of our business,” said Arik Maimon, Co-Founder and CEO of Next Group Holdings, Inc. “As we approach the launch of CUENTAS and MIO, Limecom‘s vast global telecommunication network and volume buying power are the perfect complement to our new consumer telecommunication and mobile banking services, including our lucrative reward programs for consumers.”
“I have tremendous respect for, and confidence in, the team at NXGH, and bringing Limecom together with NXGH is smart for the future of both businesses,” said Orlando Taddeo, Limecom Founder and CEO. “We are looking forward to merging our workforces at the company’s Miami headquarters. NXGH‘s plans for launching MIO and CUENTAS are exciting opportunities, and I, like all shareholders in the Company, look forward to the tremendous success we expect to see in the coming weeks and months.”
Based on https://finance.yahoo.com article