Netcapital, a FINRA regulated funding portal, has merged with ValueSetters (OTC:VSTR), according to public statements by both companies. Netcapital Systems LLC will become the new majority owner of the company and the two entities are expected to operate as subsidiaries.
The definitive agreement is an all-stock transaction. The total consideration for Netcapital is approximately $20 million paid in shares of ValueSetters common stock.
ValueSetters expects to benefit by leveraging Netcapital’s technology platform to scale its own services, particularly its digital marketing capabilities. Netcapital will now be able to access ValueSetters’ digital marketing and strategic advisory services. The two firms are said to have a long history of working together.
Jason Frishman, Netcapital CEO, stated:
“ValueSetters has an amazing team with impressive capabilities; they’ve been an important partner to Netcapital. We have leveraged ValueSetters’ unique investor perspective, strategic advice, digital marketing expertise and deep network of investors to execute our clients’ most successful fundraising campaigns. Uniting our two companies will streamline the experience for clients and partners. Our entire team is excited to combine our efforts and accelerate the growth of our business.”
Cecilia Lenk, ValueSetters CEO, said the merger will formalize a “natural and successful partnership.
“We believe an entire ecosystem is developing around private investing and online capital markets,” Ms. Lenk continued. “Combining Netcapital and ValueSetters creates tremendous value and it’s the culmination of an important phase of our shared vision. We’re all excited about what we can build together,” said Lenk.
Shares in ValueSetters trade on OTC Markets pink sheets with a recent share price of $0.0054 and a market cap of around $4.5 million.