Cuentas Inc. (“Cuentas”), a leading FinTech provider of mobile banking and payment solutions serving Latino and Hispanic consumers, entered into an exclusive Platform License agreement and other series of agreements to acquire an exclusive Platform License from the CIMA Group (“CIMA”) in consideration of $9M.
The licensed platforms with their cutting hedge technology will become the advanced back-end FinTech platform of Cuentas’ unique prepaid debit card and mobile wallet, one the market has never seen before.
Cuentas executed the exclusive Platform license for the advanced FinTech technologies with wholly-owned subsidiaries of CIMA, Knetik, Inc. and Auris, LLC
As part of the series of transactions and in exchange for the exclusive license, Cuentas issued CIMA a convertible promissory note for a principal amount of $9,000,000, which note was fully converted on Dec 31, 2019 in exchange for CIMA receiving 25% of the outstanding common stock of CUEN on a fully diluted basis. Cuentas also issued warrants to CIMA and Dinar, whereas each warrant provides the warrantee an option to own twenty-five percent (25%) of shares of Common Stock or any other equity issued upon the conversion of the Series B preferred stock on a fully diluted basis. The warrant that Cuentas issued to Dinar requires that Dinar will complete the $2.5 Million funding. CIMA was represented by Holland & Knight LLP and Cuentas was represented by Ellenoff Grossman & Schole LLP.
Adiv Baruch and Richard Berman will remain as directors of Cuentas and Mr. Yochanon Bruk was appointed as the Board designee of Dinar and his appointment was approved by the Board.
“We have been working for over a year to acquire this technology platforms which should enable Cuentas to provide many capabilities and features which have never been offered together to the general public,” said Arik Maimon, Founder and Chief Executive Officer of Cuentas. “With the Cuentas Prepaid Debit card, many more consumers will be able to use a unique set of digital products and services for their day to day financial needs. We plan to lunch the Cuentas’ unique prepaid debit card, financial mobile up and electronic wallet in a nation-wide controlled introduction by January 31, 2020.
“Cuentas will now have a tremendous set of services, tools and capabilities to help bring cost effective solutions to the unbanked, underbanked and Latino communities,” said Michael De Prado, Founder and President of Cuentas. “The features and functionality of the Cuentas App should now be expanded multiple times with the enhanced integration of the CIMA platform.” added De Prado.
“CIMA Group has been developing and operating cutting edge FinTech and Telecommunications platforms for well over 20 years and we are excited by the integration of our platforms with the Cuentas Prepaid Debit card, wallet and digital products,” said Juan Martin Gomez, President of CIMA Group. “The synergy between our companies makes for an excellent perspective for the future and should help to put Cuentas ahead of other virtual banks.” added Gomez.
“Dinar Zuz has believed in the Cuentas project from the beginning and to see the parts of the puzzle fitting into place is very encouraging,” said Yochanon Bruk, President of Dinar Zuz LLC. “The financial possibilities for consumers should help to improve their daily economic decisions.” added Bruk.
Read more about: Cuentas
Cuentas, Inc. (otcqb:CUEN)(https://cuentas.com) is a FinTech service provider with proprietary technology to provide solutions for the underbanked and un-bankable Hispanic and Latino population. Its’ disruptive services include, but are not limited to, mobile banking, online banking, prepaid debit, bill pay, ACH and mobile deposits, cash remittance, peer to peer money transfer, and bank accounts to customers who previously could not obtain bank accounts. The proprietary Cuentas General Purpose Reloadable (GPR) Card provides holders with a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content. For more information, visit https://ir.cuentas.com/
This news release contains “forward-looking statements”, as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as “estimate”, “anticipate”, “believe”, “plan” or “expect” or similar statements are forward-looking statements. Forward-looking statements contained in this news release include statements relating to other publicly available information regarding Cuentas.