Fineqia International Inc. (CSE: FNQ) (OTCPink: FNQQF) (Frankfurt: FNQA) announced on Monday it has taken a minority stake in IXL PremFina Limited, an award-winning premium finance solution empowering insurance brokers in the UK.
The company stated that it acquired the PremFina shares from IXL Holdings, a related party of Fineqia, to partly settle a convertible loan owed to the Company. Fineqia consequently joins Japan’s Rakuten FinTech Fund, the U.K.’s Draper Esprit Plc, a U.K. affiliate of Silicon Valley Bitcoin investor Tim Draper, Thomvest Ventures Inc, the investment firm of Canada’s Peter Thomson, Emery Capital, Rubicon Venture Capital and Talis Capital as PremFina shareholders. Speaking about the shares, Fineqia’s Chairman Martin Graham explained:
“Having a preferred and equity relationship with a debt originator such as PremFina helps us secure a pipeline of ongoing debt securities issuances.”
Fineqia noted that premium finance is considered high-quality debt with U.K. industry loan losses at less than 0.15%. It involves paying the cost of an insurance premium to an insurance company upfront, on behalf on an insured company or person, who then repays the same amount on a monthly installment basis, along with a finance fee.
PremFina notably provides funding as well as a Software-as-a-Service to enable premium finance by insurance brokers. Fineqia’s convertible loan amounted to $1,289,023. With $342,825 converted out of the outstanding loan amount, $946,198 remains outstanding from IXL Holdings.
The news of Fineqia’s share stake in PremFina comes less than six months after its U.K. subsidiary Fineqia Limited is launching a beta version of its new debt and equity platform that brings crowd investors selected and risk-mitigated opportunities, many of which were previously only available to large financial institutions.