TSX Venture Exchange: FGD
Frankfurt Stock Exchange: 1G5
TORONTO, Feb. 1, 2018 /CNW/ - Pursuant to the press
release issued earlier this morning, the Investment Industry
Regulatory Organization of Canada
("IIROC") has requested that First Global Data Limited ("First
Global" or the "Company") issue this press release to elaborate on
and clarify the business model and agreement it has entered into
with Tenpay Payment Technology Co. Ltd, a subsidiary of
Tencent Holdings (collectively
"Tencent").
The objective of the agreement between First Global and
Tencent is to facilitate the
acceptance of the WeChat mobile wallet by US retailers and
merchants. First Global, with the assistance of Tencent and China Smartpay, will source US
retailers and merchants willing to accept the WeChat mobile wallet
as a method of payment. Once a retailer has agreed to accept this
method of payment, First Global will be responsible for the
onboarding of such retailers and merchants including the
performance of all necessary due diligence on these parties.
The agreement represents a new line of business for the Company.
The costs to the Company associated with this new line of business
will be (i) the cost of integrating the company's technology with
that of Tencent and (ii) the cost of
sourcing and onboarding the US retailers. With respect to the cost
of integrating the Company's technology with that of Tencent, the Company anticipates that the costs
will be nominal as the Company has extensive experience with
integrating its software with that of third parties. The Company
does have the adequate resources to integrate the technologies and
once integrated there will be no additional costs.
With respect to the sourcing and onboarding of retailers, the
costs to the Company will primarily be adding additional sales
associates to source and sign up merchants. As these individuals
typically work on a commission pay structure, there will be minimal
to no cost to the Company until such time that a retailer is signed
up. The cost of installing equipment in each location will vary
depending on the equipment currently held by the retailer and
whether the retailer will require any equipment. The Company will
not be responsible for any of the equipment cost.
First Global will always maintain a direct relationship with
each retailer and merchant. The Company will be responsible for the
implementation and integration of the WeChat mobile wallet using a
variety of technical integration options at the merchant location.
The Company will connect to the Tencent payment infrastructure by way of
technical integration. These technical integrations will allow for
the seamless debiting of funds from the consumer's WeChat mobile
wallet, the conversion of currency from RMB to USD, and the
settlement to the merchant's bank accounts.
Revenues will be generated on a per transaction basis. Each
merchant will be charged a fee for each transaction that utilizes
the WeChat mobile wallet as the payment method. The fees to be
charged will be similar to that which exists for the processing of
credit cards. Merchants will pay the Company a percentage based on
the gross dollar value of the goods or services being purchased.
The Company will determine what these rates will be on a case by
case basis and based on industry standards. The Company will share
these revenues with Tencent and China
Smartpay. There can be no assurance or guarantee that any revenue
will be generated from this agreement with Tencent as it is dependent on merchants in the US
agreeing to accept the WeChat mobile wallet as a payment
method.
The term of the agreement with Tencent is for one (1) year and shall
automatically renew for subsequent one-year periods unless
terminated by either party having provided one month's prior
notice.
About First Global Data Ltd.
(www.firstglobaldata.com)
First Global is an international financial services technology
("FINTECH") company. The Company's two main lines of business are
mobile payments and cross border payments. First Global's
proprietary leading edge technology enables the convergence of
compliant domestic and cross border payments, shopping, Peer to
Peer ("P2P"), Business to Consumer ("B2C"), and Business to
Business ("B2B") payments. First Global enables its strategic
partners and clients around the world with our leading edge
financial services technology platform.
Caution:
Neither TSX Venture Exchange Inc.
("TSXV") nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy nor shall there be any
sale of the securities offered in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
Forward Looking Information:
This news release
contains "forward-looking information" within the meaning of
applicable securities laws. Although First Global believes in light
of the experience of its officers and directors, current conditions
and expected future developments and other factors that have been
considered appropriate, that the expectations reflected in this
forward-looking information are reasonable, undue reliance should
not be placed on them because First Global can give no assurance
that they will prove to be correct. Readers are cautioned to not
place undue reliance on forward-looking information. Actual results
and developments may differ materially from those contemplated by
these statements. The statements in this press release are made as
of the date of this release. First Global undertakes no obligation
to comment on analyses, expectations or statements made by
third-parties in respect of First Global, its securities, or
financial or operating results (as applicable). First Global
disclaims any intent or obligation to update publicly any
forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
SOURCE First Global Data Limited