MICT ( NASDAQ: MICT ) shares surged 33% premarket on Friday after the financial technology company announced a new merger deal, whereby it will acquire the operating business and assets of Tingo ( OTCPK:TMNA ).
Pursuant to the deal, MICT ( MICT ) will fully acquire Tingo ( OTCPK:TMNA ) operating business and assets in return for the issuance of a combination of 19.9% of MICT's common stock and two series of convertible preference shares (which if fully converted by Tingo and all conversion conditions are met, would result in Tingo owning 75% of MICT).
Tingo ( OTCPK:TMNA ) is a fintech and agri-fintech business from Africa that generated net income (before tax) of $298.4M in the first half of 2022.
The primary reasons for the new merger structure are to expedite the launch of Tingo's ( OTCPK:TMNA ) food-produce export business in Q4/2022. In order to expedite the expansion of Tingo's operating business and its ability to enter into certain new contracts, MICT has approved a loan of $20M to Tingo which it intends to fund within the upcoming days.
The deal will have an immediate material positive impact on MICT's income, earnings and balance sheet from the date of initial closing, which is expected to occur during Nov 2022.
For further details see:
MICT announces new merger agreement to acquire Tingo