Cuentas Acquires 19.99% of Cuentas SDI LLC (SDI Black 011)

Rhea-AI Summary

Cuentas, Inc. (NASDAQ:CUEN & CUENW) has successfully acquired 19.99% of Cuentas SDI LLC, owner of the SDI Black011 assets, for $750,000. This acquisition allows Cuentas an option to purchase the remaining 80.01% for $2.46 million within 90 days. The deal grants Cuentas a 40% revenue share from Cuentas SDI during this period, decreasing to 20% afterward. The SDI assets produced $8.2 million in revenue in 2021, facilitating Cuentas' growth strategy in fintech solutions and expanding its market reach.

Positive

• Acquisition of 19.99% stake in Cuentas SDI LLC enhances market position.
• Option to acquire remaining 80.01% within 90 days to consolidate ownership.
• Potential revenue share of 40% during the upcoming period supports cash flow.
• Access to a large distribution network with 31,600 bodegas and convenience stores.

Negative

• Acquisition cost of $2.46 million for remaining shares could impact cash reserves.

Cuentas paid $750k and was granted an option to purchase the remaining 80.01% for $2.46 million

MIAMI, FL / ACCESSWIRE / June 2, 2022 / Cuentas, Inc. (NASDAQ:CUEN & CUENW) ("Cuentas"), a leading fintech provider of mobile financial app and payment solutions has completed the acquisition of 19.99% of Cuentas SDI LLC, owner of SDI Black011 assets. Cuentas paid $750,000 for the minority stake in the company with the ability to acquire the remaining 80.01% within the next 90 days for $2.46 million.

SDI is a leading prepaid portal and digital provider with a nationwide retail distribution network which produced revenue over $8.2 million in 2021. The purchase agreement gives Cuentas a 40% share of all revenues generated by Cuentas SDI during the upcoming 90 day period and 20% if its equity position remains the same.

"Cuentas has already begun leveraging the 31,600 bodegas and convenience stores as well as the proprietary platform," said Cuentas CEO Jeff Johnson. "This purchase will continue to support growth of our fintech offerings and expand the reach of the Cuentas GPR debit card and digital wallet."

The SDI-Cuentas brands already have a large database of subscribers who purchase services, via the Black011.com website and digital portal. This allows Cuentas to tap into one of the largest distribution channels for prepaid wireless services and digital content in the US.

As part of the due diligence process, the SDI Black011 asset valuation was set at $6.6M. Cuentas retains the option to purchase the remaining 80.01% of all assets within the next 90 days. Cuentas is studying the possibility of upgrading a select number of prime bodega locations to offer POS systems with enhanced financial services.

About Cuentas

Cuentas, Inc. (NASDAQ:CUEN & CUENW) is a fintech e-finance and e-commerce service provider with proprietary technology that delivers digital financial services to the underbanked and un-banked Hispanic, Latino and immigrant populations including mobile and financial services, prepaid debit card, ACH and mobile deposits, cash remittance, peer to peer money transferring, and other services. The Cuentas General Purpose Reloadable (GPR) Card includes 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://cuentas.com.

Forward-Looking Statements

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 press 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 "believe," "plan," or "expect" or similar statements are forward-looking statements.

Investor Relations
Cuentas, Inc.
800-611-3622
info@cuentas.com

SOURCE: Cuentas, Inc.

View source version on accesswire.com:
https://www.accesswire.com/703662/Cuentas-Acquires-1999-of-Cuentas-SDI-LLC-SDI-Black-011

FAQ

What percentage of Cuentas SDI LLC did Cuentas acquire?

Cuentas acquired 19.99% of Cuentas SDI LLC.

How much did Cuentas pay for its initial stake in Cuentas SDI LLC?

Cuentas paid $750,000 for its initial 19.99% stake.

What is the total cost for Cuentas to acquire the remaining shares?

The total cost to acquire the remaining 80.01% is $2.46 million.

What revenue did SDI generate in 2021?

SDI produced over $8.2 million in revenue in 2021.

What revenue share does Cuentas receive from Cuentas SDI during the first 90 days?

Cuentas will receive a 40% share of all revenues generated by Cuentas SDI during the first 90 days.