Australian Telecom Firm ZipTel to Acquire Fintech Firm Douugh Ltd

Australia-based ZipTel Ltd (ASX: ZIP), a local telecommunications firm that provides international roaming and various calling solutions, has committed to a binding agreement to acquire all the outstanding shares of Douugh Ltd.

Douugh Ltd is a Fintech company that aims to use artificial intelligence (AI)-enhanced solutions to streamline traditional banking processes. The company aims to assist its customers in offering the most up-to-date financial services.

Douugh’s management says the company is on “a mission to democratize banking, developing a bank account with a brain, designed to help you live financially healthier.”

Douugh offers a subscription-based financial wellness platform, which helps customers with  money management, paying off debt, saving more each month, and building up their wealth by using a “smart” bank account and debit card.

According to the terms of the deal, ZipTel will be acquiring the legal and beneficial interest in the outstanding share capital of Douugh by issuing 500 million paid-up shares at a notional issue price of $0.02 (per share) to the shareholders of the target firm.

Additionally, the company confirmed that it will issue another 500 million performance shares in ZipTel to Douugh Ltd shareholders. The performance shares will be converted to ordinary shares on a 1-to-1 basis after certain targets have been achieved.

The company should be able to secure at least $3.5 million by issuing 175 million shares at $0.02 under a prospectus and may re-enter to the official listing with the ASX stock exchange. It may raise as much as $5 million by issuing 250 million company shares.

Following this transaction, the nature and scope of the firm’s operations would change from being just a telecom software provider to a financial software and services company.

Sponsored Links by DQ Promote


You may also like...

Send this to a friend