MIAMI, September 5, 2018 /PRNewswire/ —
Cuentas, Inc. (CUENTAS) (OTCQB: NXGHD), a FinTech service provider delivering mobile banking, prepaid debit and credit and telecommunications services to underbanked and underserved communities, has extended its Letter of Intent (LOI) with Cima Group (Cima) through October 31, 2018. Cima is a global telecommunications and digital solutions provider and integrator. The Cuentas-Cima LOI will allow Cuentas to acquire exclusive licenses of technology platforms valued at $21 million from Cima’s subsidiary companies Auris and Knetik, in exchange for a 25 percent equity stake in CUENTAS.
The Auris and Knetik technology will become the financial engine of CUENTAS used to centralize, coordinate and authenticate all transactions on its Cuentas product portfolio. Using the Auris and Knetik technology, CUENTAS’s Cuentas product portfolio will be the first multifunctional Mobile Wallet, allowing users on a single platform to seamlessly perform a myriad of financial transactions including, but not limited to, mobile banking, international remittances, gift card purchases, health insurance purchases and domestic and international “Top-Ups.”
Auris provides cloud-based back office support solutions, while the Knetik platform offers services for management of online digital experiences. In use by companies ranging from Fortune 500 to small startups, their technology will combine to provide a more efficient end-user experience for CUENTAS’s FinTech customers.
“Auris and Knetik are among the world’s leading FinTech technologies and will allow us to provide a new level of service through our unique Cuentas product portfolio,” said Arik Maimon, CEO of CUENTAS. “Their technology will be fully integrated into the Cuentas platform, positioning our company as a leader in online mobile banking solutions to the underbanked and underserved population in the US which are 70 million.”
The LOI provides CUENTAS an exclusive acquisition of Cima Group’s Auris and Knetik technology within the FinTech industry as well as ongoing support services. The LOI is based on a $50 million valuation of CUENTAS by Cima Group. In addition to receiving a 25 percent equity stake in CUENTAS, CUENTAS will also pay Cima $3.5 million over the next four years.
“I believe strongly in the future of Cuentas,” said Juan Martin Gomez, CEO of Cima. “They are quickly becoming a global innovator in bringing much needed access to financial and telecom services to traditionally underserved areas.”