Personal finance platform Digiliti Money has reportedly received a credit facility of up to $8m from Urban FT’s investment arm UFT Equities.
Of the credit, $6.5m would only be available to the company in the event it merges with Urban FT, according to a report by PayBefore.
Urban FT CEO Richard Steggall expects a transaction to be closed near the end of the month, as the companies are working on a merger, the article states.
Part of the transaction will see a principal amount of up to $1.5m delieved to Digitili Money on a promissory note, with $450,000 already being transferred, it said. The rest is likely to be given in $350,000 bursts across 90-day periods, with the funding being used to pay for agreed expenses, it states.
Digiliti Money helps financial institutions to leverage remote deposit capture and mobile money technologies to create new revenue streams and build deeper customer relations. Offerings on the platform include mobile deposit, prepaid cards, mobile money management, paying bills, risk mitigation and loan payments, among others.
Urban FT is a SaaS-based digital payments platform which help companies launch with a branded Mastercard and Visa card. The platform offers business financial frameworks, with digital banking features to help with financial management.
This offer comes after Urban FT launched a bid to acquire Digiliti Money last month, but was rejected. The value of the offer was not disclosed, but Urban FT had valued Digiliti Money at just over $10m on a net equity basis. Urban FT made this initial offer to help Digiliti Money having to go through bankruptcy processes.
Copyright © 2017 FinTech Global