GoLogiq, Inc., a U.S.-based global provider of fintech and consumer data analytics, has signed a mutual non-binding letter of intent to acquire GammaRey, Inc., a privately-held fintech ecosystem for the New World Digital Economy.  

Under the terms of the proposed agreement, GoLogiq will acquire GammaRey as a wholly-owned subsidiary in an all-stock transaction. GoLogiq would issue common shares to GammaRey shareholders valued at $320 million based on the pricing of $3.00 per share.

The parties anticipate the acquisition will close before the end of this year (2022). The transaction would follow GoLogiq’s spin-off of assets from Logiq, Inc. (OTCQX: LGIQ) which was completed earlier this year.

The combined company would initially focus on the high-growth market of wealth management for Generation Z and Millennials, followed by the launch of a new digital payment platform designed for the sharing economy.

Millennial and Gen Z financial wealth reportedly jumped 25% last year (higher than for Gen Xs and Baby Boomers), and they saw their aggregate assets grow from $2.9 trillion to $3.6 trillion. With this trend as a major driver, Bain & Company issued a report recently, that expects the wealth management market to double in size and exceeding $500 billion by 2030.

“Given the tremendous opportunities for growth in wealth management, the time has come to address the market on a larger scale through this highly synergistic merger,” stated GammaRey CEO, Timothy Alford. “As a publicly traded company with more favourable access to the capital markets, it affords our GammaRey shareholders, as well as those of GoLogiq, numerous benefits. This includes greater liquidity, higher brand visibility, and recognition of the tremendous value we have created with our proprietary fintech platform.”

GoLogiq CEO, Matthew Brent, commented: “Combining forces with GammaRey along with its capable and accomplished executive team represents a significant step toward realizing GoLogiq’s vision for a comprehensive fintech platform for underserved businesses and consumers when it became a public company last year. We see huge opportunities as we look to integrate our respective powerful fintech platforms, and set the stage for strong growth and profitability in the new year.”

Following the transaction, GoLogiq would continue to trade under the symbol “GOLQ” on the securities marketplace maintained by The OTC Markets until such time FINRA would approve a planned name change and new symbol. GoLogiq would also plan to apply for an uplisting to a listed exchange, such as Nasdaq or the NYSE. Such an application would be subject to approval based on several factors, including satisfaction of minimum listing requirements. GoLogiq intends to satisfy the applicable listing requirements; however, there can be no assurance its application would be approved.

While the company believes that the transaction will be completed as anticipated, definitive agreements are not yet signed and no assurances can be given that such agreements will be signed or the transaction completed as described.

Additional details of the planned transaction will be available in a Form 8-K as filed with U.S. Securities and Exchange Commission on www.sec.gov as well as on the investor section of GoLogiq’s website, upon entry into definitive agreements and upon completion of the transaction.