Ripple Invests in MoneyGram, Now Owns 9.95% of the NASDAQ Listed Firm

MoneyGram (NASDAQ: MGI) has completed an investment by Ripple. According to an 8K filed with the Securities and Exchange Commission, Ripple has agreed to purchase up to $50 million of common stock and ten-year warrants to purchase Common Stock.

On November 22, 2019, an “Additional Closing” occurred under the “securities purchase agreement.”  In connection with the closing, MoneyGram issued 626,600 shares of Common Stock and a Warrant to purchase 4,251,449 shares of Common Stock.

In brief, Ripple purchased 626,600 shares of  MoneyGram stock at a purchase price of $4.10 per share and a Warrant to purchase 4,251,449 shares of Common Stock at a per share reference price of $4.10 per share of Common Stock underlying the Warrant.

In a release, MoneyGram said that Ripple has made the final $20 million investment in MoneyGram equity pursuant to Ripple’s original $50 million equity investment commitment made earlier this year.

Ripple will own 9.95% of the outstanding common stock of MoneyGram, and approximately 15 percent on a fully-diluted basis including non-voting warrants held by Ripple.

Alex Holmes, MoneyGram Chairman and CEO, called Ripple’s service “transformative:”

“first time ever, we’re settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity. Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.”

For Ripple, this is just the type of partnership they seek to support.

MoneyGram traces its roots back to 1940 to the old Travelers Express corporation.

Today, MoneyGram claims the title as the second-largest money transfer company in the world.

For Ripple, the partnership with MoneyGram is a validation of its services and pursuit of expedited blockchain-based money transfers.



Sponsored Links by DQ Promote

 

 

Send this to a friend