ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On November 18, 2020, we entered into a Memorandum of Understanding with Payment Virtual Mobile Solutions, LLC (“Virtual Mobile”). The agreement concerns the formation of a joint venture named “Global Money One, Inc.” to build a prepaid debit card service. Our equity position in the new company will be 75% and Virtual Mobile owners shall hold the remaining 25% of Global Money One, Inc.
Under the agreement, we will contribute to the joint venture by raising funds for the project, estimated between US$300,000 and $500,000. We are permitted to sell up to 24% of our equity position in Global Money One, Inc. to achieve this fundraising.
Virtual Mobile will be responsible for the execution, implementation, operations and management of the project, as the operating partner.
We have the right to appoint 3 board members and Virtual Mobile shall have the right to appoint 2 board members to Global Money One, Inc. The initial slate of directors and management is contained in the agreement. Our officers, Leandro Iglesias and Alvaro Cardona, shall serve as Chairman, Executive President and Director and Secretary of the Board, Chief Financial Officer and Director, respectively, of the joint venture.
The parties have reviewed the different business scenarios and forecasts and have decided to agree that Global Money One, Inc. shall have two Business Cases and Forecast over 5 years approved by the parties, the conservative Business Case and Forecast where the plan is to reach US$45,000,000.00 in revenues and US$14,000,000.00 of EBITDA, and optimistic Business Case where the plan is to reach US$128,000,000.00 in revenues and US$53,000,000.00 in EBITDA.
The foregoing description of the Memorandum of Understanding is not complete and is qualified in its entirety by reference to the text of such document, which is filed as Exhibit 10.1 hereto and which is incorporated herein by reference.