A Potential Aggregate of
US$5,400,000 of Capital Funding
Dubai, UAE -- January 16, 2018 -- InvestorsHub
Newswire -- Global Equity International, Inc. (OTCQB:
GEQU) and its fully-owned foreign
subsidiaries, a specialist consultancy firm with offices
located in Dubai and London, would like to announce that on Friday,
January 12, 2018, management filed a Form 8-k with the Securities
and Exchange Commission. The Form 8-k filed formally disclosed a
recently executed Funding Agreement with Xantis Private Equity and
also a novated Funding Agreement with William Marshal
Plc.
Xantis Private Equity Funding Agreement: On January 11, 2018,
the Company entered into a legally binding funding agreement with
Xantis S.A., a company incorporated under the laws of Luxembourg
that is the legally appointed fund management company of Xantis
Private Equity, a sub-fund of Xantis Investments Securitisation
Fund, pursuant to which the Xantis Private Equity, through its
management company, agreed to lend Global Equity International Inc.
a minimum of £2,000,000 (approximately US$2.7 million). The parties
agreed that loan would be funded in one or more tranches commencing
within the month of January 2018. It was further agreed that each
tranche of funding would be evidenced by a Convertible Note,
bearing interest at 6% per annum and this interest on the
Convertible Notes would be payable semi-annually. In accordance to
the agreement, the Convertible Notes will mature on the
366th day following issuance. The principal and any
accrued, but unpaid, interest outstanding on the Maturity Date
shall be mandatorily converted into shares of our Common Stock. The
conversion price under the Convertible Notes shall be equal to the
greater of US$0.02 or the average closing price of Borrower’s
Common Stock on the Over-the-Counter Bulletin Board for the prior
60 trading days (subject to equitable adjustments for stock splits
and similar events). On Friday, January 12, 2018, Xantis Private
Equity through their management company wired an initial tranche of
funding amounting to £296,000 or US$400,000.
William Marshal Plc. Novated Funding Agreement: On November 20,
2017, the Company announced that it had entered in a funding
agreement with William Marshal Plc., a United Kingdom Public
Limited Company listed on the Cyprus Public Exchange Emerging
Companies Market. The terms of this agreement were identical to the
terms of the recently agreed Xantis Private Equity Funding
Agreement. On January 11, 2018, the Company and William Marshal
Plc. mutually agreed to novate the previous agreement changing the
minimum £2,000,000 (approximately US$2.7 million) of funding to a
maximum of £2,000,000. This new agreement was to supersede entirely
the November 20, 2017 agreement. Each tranche funded will also be
evidenced by a Convertible Note. The loan will carry a 6% coupon
and will convert on a mandatory basis 366 days from the date that
each tranche is funded. The conversion terms are also identical to
that of the Xantis Private Equity Funding Agreement, the greater of
US$0.02 or the average closing price of Borrower’s Common Stock on
the Over-the-Counter Bulletin Board for the prior 60 trading days
(subject to equitable adjustments for stock splits and similar
events).
These two Funding Agreements are a major milestone in the
development for Global Equity International Inc. allowing the
Company to properly implement its business plan, growth by
acquisition, and know that firm commitments can be made in the
coming days, weeks and months.
The Capital Funding received will mainly be deployed for
inorganic growth via acquisitions of various advisory firms with
funds under management, reduction of indebtedness and general
working capital purposes.
Over the last 12 months, management has identified various
Advisory Firms with Funds Under management, in the United Kingdom
and also South East Asia, managing circa US$180,000,000 of
Funds.
In June of 2017, management executed letters of intent to
acquire two advisory firms with circa US$90,000,000 under
management and in excess of 700 clients. The first being a
financial advisory firm fully licenced by the United Kingdom
Financial Conduct Authority (FCA) with approximately US$51,000,000
of funds under management. The second company is an Isle of Man
based “Discretionary Fund Management Group” with approximately
US$39,000,000 of funds under management.
On October 25, 2017, management executed a letter of intent to
acquire two Asian based financial advisory firms with approximately
US$90,000,000 of funds under management. These two advisory firms
have a client base into the thousands, a small but highly effective
distribution force, 20 more staff and a true regulatory
diversification with a second footing in the ever expanding Asian
markets.
All four of these targeted acquisitions have been in business
for many years, are cash flow positive and profitable and have a
firm stronghold position within the financial services sector.
Link to SEC 8-k
filing: https://www.sec.gov/Archives/edgar/data/1533106/000149315218000473/form8-k.htm
Peter Smith, CEO of Global Equity International Inc.,
said: “We started the research for the
acquisitions in June 2016 and had identified 9 key targets by
February 2017. We executed letters of intent with 4 of those
targets mid to late last year and have finally put the last piece
of the jigsaw together with the funding commitments from Xantis
Private Equity and William Marshal Plc. last week. As I have stated
in prior press releases, this financial services division is
tremendously significant to our ongoing growth. Whilst the initial
acquisitions offer good revenues and profits, the hidden values can
be much more significant to our Company by having multi-licensed
distribution teams in different regions around the globe. We will
now step up the research on the next wave of acquisitions with
licensed targets again in the UK and South East Asia where we
intend to become “the go to Company” for retail financial
management. We grew a business similar to this previously, but that
was very much a one dimensional company in financial services only;
if we could have added into that business a recruitment arm to
supply qualified manpower and a capital markets arm to find
attractive emerging companies and assist with funding them, we
would have had the perfect financial offering. That is exactly what
we are building now.”
Enzo Taddei, CFO of Global Equity International Inc.,
said: “A lot has happened in the last couple of
months. In December of 2017, we incorporated a United
Kingdom based subsidiary called Argentum 47 Financial Management
Limited; this company is fully owned by Global Equity International
Inc. and will be the vehicle that acquires the targeted advisory
firms with funds under management. Also in December of 2017, we
also managed to put a stop to any further material dilution of our
stock by agreeing a payment plan, with a Noteholder, on the balance
of our convertible debt and we are now in a position to honor the
payment plan, in a timely manner, as agreed. Today, we find
ourselves with a defined road map to follow: soon we will enter
into a legally binding agreement with the owners of each targeted
acquisitions and then commence the process of getting all of these
targeted acquisitions audited, as the closing of these acquisitions
will be very much subject to a successful audit. Seeing as time is
money, we have worked diligently over the last few weeks to collate
all the necessary due diligence and information required in order
to put together a comprehensive audit package for the auditors.
Whilst we were in London in December, we interviewed various
knowledgeable and experienced people in the financial services
sector as we will soon need to start to add to our team as we
implement our growth model. It has been difficult getting to the
point that the Company is at today but looking back, I believe that
the sacrifice has been more than worth it. We have a lot of work
ahead of us, especially now that we have the required funding
contractually agreed and the first tranche from Xantis sent to our
bank.”
About Global Equity International Inc. and
Subsidiaries.
Global Equity International Inc., through its wholly-owned
foreign subsidiaries, advises worldwide business leaders with their
most critical decisions and opportunities pertaining to growth,
capital needs, structure and the development of a global presence.
With offices in Dubai and London, Global Equity has developed
significant relationships in the US, UK, Central Europe, the Middle
East and South East Asia to assist clients in realizing their full
value and potential by bringing them to external capital and
resources that place an emphasis on collaborative thinking.
Furthermore, because Global Equity has offices in key financial
centers of the world, they are able to introduce their clients to a
unique opportunity of listing their shares on any one of the many
stock exchanges worldwide.
Safe Harbor Statement
This press release may include forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements related to anticipated revenues,
expenses, earnings, operating cash flows, the outlook for markets
and the demand for products. Forward-looking statements are no
guarantees of future performance and are inherently subject to
uncertainties and other factors which could cause actual results to
differ materially from the forward-looking statements. Such
statements are based upon, among other things, assumptions made by,
and information currently available to, management, including
management’s own knowledge and assessment of the Company’s industry
and competition. The Company refers interested persons to its most
recent Annual Report on Form 10-K and its other SEC filings for a
description of additional uncertainties and factors, which may
affect forward-looking statements. The company assumes no duty to
update its forward-looking statements.
Mr. Peter James Smith
Director and officer of Global Equity International Inc.
Tel. + (971) 42 767 576
Mr. Enzo Taddei
Director and officer of Global Equity International Inc.
Tel. + (1) 321 200 0142
Web : www.globalquityinternational.com
Email: ir@globalequityinternational.com
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