Cuentas Signs Binding Letter of Intent to Purchase SDI Black 011 LLC and Mango Tel LLC for $3.2M

Rhea-AI Summary

Cuentas, Inc. (NASDAQ:CUEN, CUENW) has executed a binding letter of intent to acquire SDI Black 011, along with Mango Mobile and Black Wireless, enhancing its retail and mobile footprint. This strategic acquisition, set to close by May 2022, aims to leverage SDI's distribution network, which generated over $9 million in retail revenue in 2021. CEO Jeff Johnson highlighted the acquisition's potential to drive recurring revenue and operational efficiencies, benefiting over 30,000 US retailers.

Positive

• Acquisition of SDI Black 011 expected to enhance Cuentas' retail and mobile reach.
• SDI generated over $9 million in retail revenue in 2021.
• Expected operational efficiencies and recurring revenue from SDI's profitable assets.
• Access to a vast distribution network serving over 30,000 retailers.

Negative

• None.

Acquisition Will Expand Cuentas' Retail and Mobile Reach and Drive Growth in Key Target Markets

MIAMI, FL / ACCESSWIRE / January 10, 2022 / Cuentas, Inc. (NASDAQ:CUEN)(NASDAQ:CUENW) ("Cuentas"), a leading fintech provider of mobile banking and payment solutions, has signed a binding letter of intent to acquire the operations and distribution network of prepaid wireless and digital provider SDI Black 011 (SDI), as well as Mango Mobile and Black Wireless. The deal is expected to close by or before May of this year.

Cuentas previously invested in the expansion of the SDI network, and will leverage these assets to accelerate reach of the Cuentas prepaid debit card and digital wallet via retail, mobile and other channels. SDI generated more than $9 million in retail revenue in 2021.

"This acquisition will drive more recurring revenue and create new operational efficiencies for Cuentas." said Jeff Johnson, CEO of Cuentas. "We expect SDI's profitable assets to contribute to economies of scale across our business, and enable more solutions within the Cuentas mobile app, driving higher profits and accelerating market growth in our core fintech business."

The SDI B2B portal serves over 30,000 US bodegas, wireless retailers and convenience stores, and will enable retailers to sell from a portfolio of hundreds of virtual products without carrying inventory, generating incremental profits in real-time.

Black011 and its brands already have hundreds of thousands of subscribers who purchase services via the SDI website and digital portal, both of which connect via API to the largest wireless companies in the world. This technology allows SDI to be one of the largest distribution channels for wireless services in the New York City metro tri-state area and nationwide.

Through this acquisition, both retailers and Black011 subscribers will benefit from access to Cuentas solutions including the Cuentas Prepaid Debit card, OMNY Transit, Amazon cash, prepaid gift cards, rebates, new offers and more.

About Cuentas

Cuentas, Inc. (NASDAQ:CUEN & CUENW) is a fintech e-banking and e-commerce service provider with proprietary technology that delivers digital financial services to the underbanked and un-banked Hispanic, Latino and immigrant population including mobile and online banking, prepaid debit, 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/681629/Cuentas-Signs-Binding-Letter-of-Intent-to-Purchase-SDI-Black-011-LLC-and-Mango-Tel-LLC-for-32M

FAQ

What is Cuentas' recent acquisition deal about?

Cuentas has signed a letter of intent to acquire SDI Black 011, Mango Mobile, and Black Wireless to expand its reach in retail and mobile banking.

When is the Cuentas acquisition of SDI expected to close?

The acquisition is expected to close by or before May 2022.

What financial impact did SDI have in 2021?

SDI generated over $9 million in retail revenue in 2021.

How many retailers does SDI serve?

SDI serves over 30,000 US bodegas and convenience stores.

What will Cuentas customers gain from this acquisition?

Cuentas customers will gain access to a portfolio of virtual products and services, including prepaid debit cards and digital wallet features.