Fobi Announces Acquisition of PassWallet, A Leading Android Wallet Pass Issuer With 6,000,000+ DownloadsTuesday, October 12, 2021
Fobi Announces Acquisition of PassWallet, A Leading Android Wallet Pass Issuer With 6,000,000+ Downloads. Deal To Provide Near-Term and Long-Term Revenue Growth
Vancouver, BC, October 12, 2021--(T-Net)--Fobi AI Inc. (FOBI:TSXV FOBIF:OTCQB), a leader in providing real-time data analytics through artificial intelligence to drive customer activation and engagement, announced today that the Company has signed an Agreement to acquire PassWallet, a leading app (by Google Play Store downloads) for managing and utilizing Wallet passes on Android phones.
PassWallet works with other leading Wallet pass companies and supports more than 150 countries where Google Pay is not supported.
Rob Anson, Fobi CEO stated: "This represents a key achievement for Fobi and its shareholders. This acquisition of PassWallet positions Fobi as an up and coming leader in the digital wallet space. The company has made great strides this year and this key strategic development positions us extremely well, enabling us to leverage and monetize on a standard ARPU model (average revenue per user). With over 6 million downloads currently, management believes that by leveraging our artificial intelligence and data solutions as well as the integration of Fobi's marketing power together with the global wallet pass growth rates, that this number will grow significantly in 2022. Coupled with further untapped opportunity and an addressable market of over 150 countries that are currently not serviced by Google Pay, management anticipates that with this acquisition Fobi is now well positioned to expand into the FinTech space."
TERMS OF THE TRANSACTION
In consideration for the acquisition of PassWallet, Fobi will pay €888,000 consisting of:
(i) €355,200 paid in cash;
(ii) €532,800 in common shares of Fobi calculated by dividing €532,800 converted into Canadian funds using the Bank of Canada monthly exchange rate for the calendar month of September, 2021 by the 10 trading day volume weighted average price of the Fobi Shares on the TSX Venture Exchange (the "TSXV") for the period ended five TSXV trading days prior to the date of closing of the Transaction.
Any Fobi Shares issued in connection with the Transaction will be subject to a restricted period of four months and one day from the date of issuance. There are no finder's fees or long term debt associated with this agreement.
The closing of the Transaction is subject to and will occur following receipt of TSXV approval.
Moreover, and perhaps more importantly, the global mobile wallet market addressed by PassWallet is forecasted to achieve significant growth in the coming years due to the growing popularity of mobile wallet payments and applications across multiple industry verticals. A recent report from Research Dive estimates the Global Mobile Wallet Market will grow from $11 Billion in 2020 to $46 Billion by 2028, representing a staggering CAGR of 18.9% for an industry already in the Billions and a significant growth opportunity for Fobi.
This growth is being driven by the rapidly increasing popularity of mobile wallet payments in developed economies, as well as the ability of Wallet pass based companies to service "unbanked" customers (those who have smaller bank balances or no bank account at all).
In a recent report by Ark-Invest on Wallet Pass companies, they noted that the average customer acquisition cost for the major banks in the US was $925, whereas the customer acquisition cost for Square was just $20, driving Square to start targeting unbanked customers based on Reports that Square's Cash App was especially popular in locations where unbanked rates are high.
Combining the acquisition of PassWallet with the global strategic partnerships and alliances already announced by Fobi to date, the Company says it has an opportunity to pursue the unbanked digital wallet opportunity with some of the top payment companies in the world.
Richard Lee, SVP of Corporate Strategy & Corporate Development, Fobi AI
Fobi SVP of Corporate Strategy & Corporate Development Richard Lee stated, "This acquisition opens yet another new vertical for the organization, and I am extremely proud of the relentless efforts of the team which is one of my primary reasons for joining Fobi. PassWallet will be complementary to many of Fobi's existing services and will significantly enhance our ability to drive even more engagement with consumers. With this acquisition, it will provide Fobi with greater opportunities and applications leveraging the mobile wallet, including entry into additional markets at an even faster pace. We are truly building something special here."
Google Pay wallet passes are only available in the 40 countries where Google has also launched their payment service. This excludes over 150 countries including very large markets such as Mexico, Israel and the Philippines with very high mobile usage rates, providing Fobi with a significant market opportunity for wallet pass users and potential commerce related services.
In addition to geography, PassWallet holds an important technology advantage over Google Pay in its support for push notifications right to an Android user's lock screen, according to the company. This means that PassWallet can deliver even greater levels of customer engagement and personalized marketing as demonstrated by Fobi's Passcreator Wallet passes.
This engagement advantage stems from the fact that PassWallet is client-based, whereas Google Pay is a server-based service that requires the additional step of sending user data to Google's servers in order to create a pass, presenting a major challenge to EU customers that need to be compliant with GDPR.
PassWallet is the first app specializing in enabling Android users to store, organize and update Wallet passes, in the most simple and intuitive way. PassWallet can service all type of passes imaginable: boarding passes, transport cards, passes to the movies, theatres, concerts, museums, festivals, theme parks or stadiums, loyalty cards, vouchers and discount coupons in many stores, hotels and car reservations and more.
Fobi is a cutting-edge data intelligence company that helps our clients turn real-time data into actionable insights and personalized customer engagement to generate increased profits. Fobi's unique IoT device has the ability to integrate seamlessly into existing infrastructure to enable data connectivity across online and on-premise platforms creating highly scalable solutions for our global clients. Fobi partners with some of the largest companies in the world to deliver best-in-class solutions and operates globally in the retail, telecom, sports & entertainment, casino gaming, and hospitality & tourism industries.
This news release contains certain statements which constitute forward-looking statements or information, including statements relating to the use of proceeds from the Offering. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic and capital markets conditions, stock market volatility and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information.
Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future plans, operations, results, levels of activity or achievements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative. There can be no assurance that the Company will be able to achieve all or any of its proposed objectives.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
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