MICT announced that its Mobile Resource Management subsidiary, Micronet has received 3 purchase orders for the supply and delivery of its 4th generation TREQ-317 hardware platform, from a current customer, a leading U.S. telematics service provider, in the total amount of $1,400,000. The TREQ-317 hardware platform is a rugged Android based fix-mount on board computer, offering advanced functionality at a competitive price. Installed in the driver's cabin the TREQ-317 hardware platform enables, inter alia, monitoring and management of vehicle fleets including Android based advanced computing assignments such as follow-up of tasks, two-way communication with the fleet manager, remote vehicle and engineering equipment diagnostics, monitoring behavior and drivers hours of services.
Brookfield Interactive and MICT announce the signing of a definitive acquisition agreement to pursue the strategic transactions and planned listing on NASDAQ outlined in announcements by MICT and BNN on July 2, 2018. The acquisitions will create a new company, Global Fintech Holdings Ltd, which will become the parent of these highly complementary businesses with the opportunity to achieve significant scale as a combined entity. GFH successfully raised $23.5M at $1.65 per share to fund the transaction. BNN Technology PLC, a 15% stockholder in MICT and majority stockholder of Brookfield Interactive, will commence a tender offer to purchase up to 20% of the issued and outstanding shares of MICT's common stock, not already owned by it within 15 business days at a price of $1.65 per share, in order to increase its ownership percentage of MICT to a maximum of 35%. MICT and GFH will complete a merger whereby MICT will become a wholly-owned subsidiary of GFH.
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On June 21, BNN Technology acquired a 14.89% stake in Micronet Enertec Technologies (MICT). Following this acquisition, BNN and MICT announced the execution of a Letter of Intent to enter into a series of strategic transactions. Specifically, the Letter of Intent between BNN and MICT outlines the following proposed transactions: BNN will seek to acquire, through a third-party cash tender offer at a price of at least $1.65, an additional approximately 35% stake in MICT, with a view to owning in aggregate at least 50.1% of the company's issued shares. Both BNN and an unrelated third party, a leading Platform as a Service provider of transaction technology, shall be acquired by MICT in exchange for cash and the issuance of shares. The third-party acquisition is pursuant to a heads of terms, which BNN has previously entered into with the third party. The overall combined entity will be cash flow positive. All of the shares of Micronet Tel Aviv currently held by MICT would be spun off to MICT shareholders that remain shareholders of MICT after the tender offer. Micronet Tel Aviv is a publicly traded Tel Aviv company owned 49.89% by MICT MICT will raise a minimum of between $26M -$36M from major global institutional investors. As a result of the contemplated transactions, MICT, a publicly traded NASDAQ company, would own BNN and the third party, and would have a sizable valuation that offers shareholders in each entity an attractive opportunity for the future. These transactions are subject to diligence by the parties, the negotiation of definitive agreements and approval by the respective BNN and MICT boards and MICT's shareholders.
Micronet Enertec Technologies (MICT) that it has completed the previously announced sale of its wholly owned aerospace and defense subsidiary, Enertec Systems 2001 Ltd., or Enertec, to Coolisys Technologies Inc., a subsidiary of DPW Holdings, Inc. (DPW)."With the closing of this transaction and with a stronger balance sheet, MICT will focus, in advancing its potential opportunities in the multi-billion dollar Mobile Resources Management space. We have added over $4.7 million in cash and strengthened our balance sheet by removing the entire debt of Enertec, which totaled approximately $4.0 million, bringing overall effective transaction price to $8.7 million for all of Enertec's assets and liabilities. With the sale of Enertec, we expect our gross margins to improve significantly," said David Lucatz, CEO of Micronet Enertec Technologies. MICT received over $4.7 million in cash at the closing. The final consideration amount was adjusted pursuant to the terms of the agreement with DPW as a result of adjustments relating to certain debts and cash balances of Enertec at closing. Coolisys also assumed approximately $4.0 million of Enertec's debt. Micronet Enertec intends to change its name in the near future.