Fram signed a letter of intent to divest DragonLend to US-listed acquirer, Gologiq
FRAM SKANDINAVIEN AB (“Fram” or the “Fram^”) has signed a non-binding letter of intent to divest all of its shares in Fram Venture 7 AB (i.e “DragonLend”), to GoLogiq Inc. (OTC:GOLQ), a US-listed global provider of fintech and consumer data analytics. The purchase price (paid all in form of shares of the acquirer) is up to US$20 million (of which US$6 million upfront and the remainder in form of an earnout).
The acquisition of DragonLend complements GoLogiq’s existing fintech ecosystem, which encompasses a range of financial services, from payroll services to retirement investing.
“We see a strong industry logic in DragonLend’s fit into GoLogiq’s fintech ecosystem and fundraising capabilities. DragonLend has for a while been looking for a strategic partner that can help fund and scale its SME operations. This transaction is set to unlock great value for all sides and help propel DragonLend to its full potential”, says Hanh Mai, CEO of Fram.
“We now have assembled years of valuable data for our credit scoring model, which we can rely on for driving profitable growth. The SME-sector is the cornerstone of the Vietnamese economy and DragonLend is well positioned to support it”, says Max Bergman, CEO of DragonLend.
“The acquisition of DragonLend would further our expansion into Vietnam with a proven business lending service that is highly complementary to our fintech ecosystem. We see its scalable platform enabling us to expand into other emerging markets across Southeast Asia, such as Singapore and Thailand”, commented Granger Whitelaw, GoLogiq CEO.
Additional information around the proposed transaction
- Under the terms of the letter of intent, GoLogiq will acquire 100% of Fram Venture 7 AB. The company anticipates closing the transaction over the coming months.
- While the parties expect the transaction to be completed as anticipated, a definitive agreement has yet to be signed and no assurances can be given it will be executed or the transaction will be completed as described. Normally, Fram does not announce transactions at the earlier letter of intent stage, but in this process Fram is following the communication schedule of the acquirer.
- GoLogiq recently announced a sale/reallocation of its fintech assets to Nasdaq-listed entity, Recruiter.com Group (NASDAQ:RCRT) (NASDAQ:RCRTW) (“Recruiter”), a recruiting solutions provider. If such sale is consummated prior to the closing date of GoLogiq’s acquisition of Fram Venture 7, GoLogiq intends to assign its rights in its purchase agreement to Recruiter, whereupon Fram Venture 7 would become a subsidiary of Nasdaq-listed Recruiter and the transaction proceeds would instead be paid in form of Recruiter shares.
About DragonLend
DragonLend, a subsidiary of Fram Venture 7, is a financial lending platform that supports Vietnamese SMEs with working capital solutions to fuel their growth. Fram Venture 7 and DragonLend were founded by a group of entrepreneurs from Fram Skandinavien AB (FRAMB:SS), a publicly listed investment group. To learn more about DragonLend, go to www.dragonlend.vn.
About GoLogiq
GoLogiq Inc. is a U.S.-based global provider of fintech and mobile solutions for digital transformation and consumer data analytics. Its software platforms are comprised of CreateApp, a mobile app development and publishing platform for small-to-medium sized businesses; AtozGo™, a ‘hyper-local’ app-based delivery platform; AtozPay™, an eWallet for mobile top-up, e-commerce purchases, bill payment and microfinance; and Radix™, a Big Data analytics platform.
