FDCTech Announces the Termination of Genesis Financial Inc. Stock Purchase Agreement

Rhea-AI Summary

FDCTech, Inc. has terminated its Stock Purchase Agreement with Genesis Financial due to Genesis's inability to comply with material provisions. The agreement, dated June 2, 2021, could not be completed as several requirements were unmet, including lien releases and other disclosures. Following this, Mr. Warwick Kerridge was relieved of his role as Chairman, with former Chairman Mr. Eaglstein taking over as interim Chairman. Despite the setback, the CEO remains optimistic about future acquisitions to enhance shareholder value.

Positive

• Company remains focused on fintech-driven acquisition strategy to enhance shareholder value.

Negative

• Termination of the Stock Purchase Agreement may indicate management and compliance issues at Genesis.
• Loss of Chairman position could impact company stability and investor confidence.

Irvine, CA, Aug. 27, 2021 (GLOBE NEWSWIRE) -- FDCTech, Inc. ("FDC" or the "Company," OTCQB: FDCT), a fully integrated financial technology company with a full suite of digital financial services solutions, today announced that it had terminated effective immediately the Stock Purchase Agreement (the "Agreement"), dated June 2, 2021, with the Shareholders of Genesis Financial, Inc., a Wyoming corporation ("Genesis" or "Seller").

The Company could not complete nor qualify the Agreement as Genesis could not comply with several non-exhaustive material provisions, covenants, or conditions. Among other items, it included releasing liens, defaults settlement, payoff letters, discharges of liens, releases of guarantees, and other disclosures required by the Agreement.

Mr. Warwick Kerridge was also relieved of his position as Chairman of the Board of the Company, and that Mr. Eaglstein, the former Chairman of the Board, was appointed interim Chairman of the Board.

"While we are disappointed that the transaction could not close despite working diligently to remedy the outstanding issues, the Company's future outlook looks promising. We will continue to pursue our fintech-driven acquisition strategy in the United States and globally to enhance the value of our shareholders," said FDC Founder, Acting Chairman, and CEO Mitchell M. Eaglstein.

For additional information, visit our SEC filings or Company's website for more information on the full results and management's plan.

FDCTech, Inc.
FDCTech, formerly known as Forex Development Corporation, is a fully integrated financial technology company. FDC delivers trading platform, back-office, liquidity, dealing desk, and prime brokerage solutions to forex market participants seeking access to retail and institutional spot forex markets.

Press Release Disclaimer

Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets, and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. The Company does not make any representation or warranty, express or implied, regarding the accuracy, completeness, or updated status of such forward-looking statements or information provided by the third-party. Therefore, in no case whatsoever will Company and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or any related damages.

Contact Media Relations
FDCTech, Inc.
ir@fdctech.com
www.fdctech.com
+1 877-445-6047
200 Spectrum Drive, Suite 300,
Irvine, CA, 92618

FAQ

Why did FDCT terminate the Stock Purchase Agreement with Genesis Financial?

FDCT terminated the agreement because Genesis Financial could not comply with several material provisions required for completion.

What were the main issues with the Stock Purchase Agreement between FDCT and Genesis?

The issues included failure to release liens, settle defaults, provide payoff letters, and fulfill other necessary disclosures.

Who is the interim Chairman of FDCT after the termination of the agreement?

Mitchell M. Eaglstein, the former Chairman, has been appointed as the interim Chairman of the Board.

What is FDCT's outlook after terminating the agreement?

FDCT's CEO expressed optimism about pursuing fintech-driven acquisition strategies to enhance shareholder value.

What financial performance factors were affected by the termination of the agreement?

The termination could raise concerns about compliance and management effectiveness, potentially impacting investor confidence.