Fintech Mobi724 Acquires LatAm Marketplace Avenida Compras S.A.

Mobi724 Global Solutions Inc. (TSXV: MOS) ("Mobi724" or the "Company"), a fintech enabler of real-time, AI-powered payment card-linked solutions, is pleased to announce it has entered into an agreement in principle (the "Agreement") with Avenida Inc. (the "Seller") to acquire all of the shares of Avenida Compras S.A. ("Avenida+"), a rapidly growing white-label marketplace and e-commerce business with a growing presence in Latin America (the "Transaction").

The purchase price payable by Mobi724 for Avenida+ will consist of an upfront payment of US$4.0 million, of which US$3.5 million will be paid in cash and US$0.5 million will be paid through the issuance of shares at their market price at the time of closing, subject to a minimum issue price of $0.05 per share as per the requirements of the TSX Venture Exchange ("TSX-V"), as well as potential additional payments of up to a further US$6.0 million, payable in cash and shares, based on Avenida+'s financial performance during the period ending December 31, 2023 (the "Earn-out Payment").

The Transaction is expected to close on or about May 15, 2022, and is subject to regulatory approval by the TSX-V, the Company securing the necessary financing, the execution of definitive documentation as well as certain conditions and closing adjustments which are customary for transactions of this nature. No finder's fee will be paid by the Company in relation to the Transaction.

Avenida+ has relationships with a number of banks with a current card base of approximately 24 million payment cards. Avenida+'s management will continue to be spearheaded by its current CEO and CFO, Daniel Jejcic and Mayra Fiszman respectively. Daniel and Mayra's leadership skills and entrepreneurial spirit have helped Avenida+ build white label e-commerce marketplaces that offer more than 100,000 products from over 4,500 merchants.

"We are truly pleased to make this transformational acquisition that further positions Mobi724 as a leading aggregator of real-time offers and rewards both online and offline in the Latin America region," said Marcel Vienneau, CEO of Mobi724. "We formed a strategic alliance with Avenida+ in November 2020, and in working together, we both experienced significant revenue-generating opportunities and an expanded sales pipeline. Avenida+'s management team has achieved strong success at growing its business, and as part of Mobi724, we look forward to working together to generate even further growth."

Avenida+'s hub is based in Buenos Aires, Argentina, and currently serves B2B clients across Latin America, including banks. Avenida+'s white-label marketplace platform allows payment card issuers, loyalty program operators, shopping mall associations, and other third parties to provide their customers with an infinite variety of online products and offers from local merchant networks or leading global brands.

Marcel Vienneau added: "We will leverage Avenida+'s existing relationships with over 4,500 merchants and with banks having a current card base of approximately 24 million payment cards so as to enable us to monetize our AI-powered portfolio of solutions, such as cash back and pay with points. As a team, we aim to offer the most innovative portfolio of solutions to our Latam target market of approximately 1 billion payment cards."

(Source: Fintech Finance)