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( LONGS )
Congrats to you all.
Qss..
What is the RATIO SS between TIO and PAYPAL will be?
The VALUATION will be @ what PRICE?
Thoughts.
Tia!
No brainer. Sharheolder approved.
This one was a great investment. Strong leaders. Great business model. Great IR. And a nice exit for shareholders.
Cant argue with 1000%
GLTA & JMO
TIO Networks Corp. Securityholders Overwhelmingly Approve Plan of Arrangement with PayPal Holdings, Inc.
SAN JOSE, CA and VANCOUVER, April 11, 2017 /CNW/ - PayPal Holdings, Inc. (Nasdaq: PYPL) and TIO Networks Corp. (TSXV: TNC), a cloud-based multi-channel bill payment processing and receivables management company, today announced that, at the special meeting of securityholders of TIO held on April 10, 2017 (the "Meeting"), securityholders of TIO overwhelmingly voted in favour of a special resolution to approve the proposed transaction, pursuant to which PayPal will indirectly acquire all of the issued and outstanding shares of TIO by way of a court-approved plan of arrangement (the "Arrangement").
Approval of the Arrangement required approval by: (i) 66?% of the votes cast by shareholders present in person or represented by proxy at the Meeting; (ii) 66?% of the votes cast by securityholders present in person or represented by proxy at the Meeting, with shareholders and optionholders voting together as a single class; and (iii) a simple majority of the votes cast by shareholders present in person or represented by proxy at the Meeting, excluding the votes cast by such shareholders as are required to be excluded pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101").
At the Meeting, approximately 79.26% of the outstanding TIO shares and TIO options were represented in person or by proxy, of which 99.78% were voted in favour of the Arrangement. Approximately 99.75% of the shareholders other than shareholders whose votes were required to be excluded for the purposes of "minority approval" under MI 61-101 voted in favour of the Arrangement.
Completion of the Arrangement remains conditional on approval by the Supreme Court of British Columbia (the "Court"), obtaining regulatory approvals and certain other closing conditions. TIO intends to apply for a final order of the Court approving the Arrangement on April 13, 2017. Assuming that the conditions to closing are satisfied and the necessary regulatory approvals are obtained, it is expected that the closing of the Arrangement will be completed in the second half of 2017.
Further information about the Arrangement is set forth in the information circular and proxy statement in respect of the shareholder meeting which has been filed under TIO's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com as well as on TIO's investor relations website at http://corporate.tionetworks.com/.
About PayPal
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal (Nasdaq: PYPL) is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. Our open digital payments platform gives PayPal's nearly 200 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies. For more information on PayPal, visit https://www.paypal.com/about. For PYPL financial information, visit https://investor.PayPal-corp.com.
About TIO Networks
TIO is a cloud-based multi-channel bill payment processing and receivables management provider, serving the largest telecom, wireless, cable, and utility bill issuers in North America. TIO integrates with the back office of billing systems to accept, validate, and collect payments via self-service kiosk, retail walk-in, mobile, and web solutions. With approximately 60 million transactions processed in fiscal 2016 and a processing network that serves more than 10,000 billers, TIO symbolizes fast, convenient, and secure access to expedited bill payment services.
Now that was a sweet ending....
I'm happy for all the longs here, nice to see $$$$$ being made.
Flushed into the PayPal portfolio at an all time high PPS / valuation.
LOL
Congrats to all Longs and those who invested appropriately for this winning story.
I cant even make this stuff up.
GLTA & JMO
PayPal to Acquire TIO Networks
Expands PayPal’s Reach Into the U.S. Bill Payment Channel with More Than 10,000 Supported Billers, 65,000 Over-the-Counter Locations and 900 Operated Kiosks
Supports PayPal’s Mission to Advance Financial Inclusion and Addresses a Key Need of Underserved Consumers
PayPal Holdings, Inc. (Nasdaq: PYPL) and TIO Networks Corp. (TSXV: TNC), a cloud-based multi-channel bill payment processing and receivables management company, today announced a definitive agreement under which PayPal will acquire TIO for $3.35 CAD ($2.56 USD) per share in cash or an approximate $304 million CAD ($233 million USD) equity value. The purchase price represents a premium of 25.2% to TIO’s 90-trading day volume-weighted average price as of February 13, 2017, and 22.6% to the 20-trading day volume-weighted average price as of January 9, 2017, the trading day immediately preceding the date TIO entered into exclusive negotiations with PayPal.
TIO is a leading multi-channel bill payment processor in North America and processed more than $7 billion USD in consumer bill payments in fiscal 2016. TIO serves 14 million consumer bill pay accounts* and offers convenient solutions for expedited bill payment services to financially underserved consumers. The company has more than 10,000 supported billers and numerous direct relationships with billers, which enable TIO to quickly process telecom, wireless, cable and utility bill payments for TIO’s customers. Using TIO’s approximately 900 operated self-service kiosks, approximately 65,000 retail walk-in locations, and mobile and web solutions, customers can conveniently pay their bills while avoiding the service interruptions and financial penalties associated with missed payment deadlines.
Dan Schulman, President and CEO of PayPal, said, “By acquiring TIO and integrating bill payment into our global payments platform, PayPal adds another key service in our efforts to become a part of a consumer’s everyday financial life. Worldwide, more than 2 billion** people do not have affordable access to basic financial services, making it difficult and expensive for consumers to carry out basic financial tasks, including bill payment. TIO’s digital platform, and physical network of agent locations make paying bills simpler, faster, and more affordable. We are excited by the opportunity to extend this valuable service to our existing customers and welcome new billers and customers to PayPal."
Hamed Shahbazi, Chairman and CEO of TIO, remarked, “We founded TIO to make speed and access part of the bill payment experience for the underserved, and we believe that we have created affordable products to serve the needs of all customers. Our mission fits perfectly with PayPal’s vision to democratize money. As part of the PayPal team, we believe we will accelerate our growth through expanded distribution and continue increasing access to more billers and services.”
Expected Strategic Benefits of the TIO Acquisition
Aligned with PayPal’s Vision: TIO supports PayPal’s vision of democratizing money by giving consumers more convenient and affordable ways to pay their bills.
Expands Market Opportunity: TIO accelerates PayPal’s entry into bill payments with 14 million consumer bill pay accounts*, approximately 60 million transactions processed in TIO’s fiscal 2016 and a processing network that includes more than 10,000 billers.
Extends Consumer Value Proposition: PayPal’s intention is to offer TIO’s valuable service to PayPal’s customers within its online and mobile experiences.
Upon closing of the acquisition, TIO will operate as a service within PayPal.
Financial Highlights of Acquisition
PayPal intends to fund the transaction with cash on its balance sheet. There will be no change to PayPal’s previously communicated fiscal 2017 guidance and three-year outlook based on the acquisition of TIO. For the fiscal year ended July 31, 2016, TIO generated $74.7 million CAD in revenue ($57.1 million USD) and $10.6 million CAD in adjusted EBITDA ($8.1 million USD). TIO defines EBITDA as earnings before interest, tax, depreciation and amortization and adjusted EBITDA as EBITDA plus stock-based compensation, non-recurring transaction and restructuring expenses.
Transaction Details
The acquisition is expected to close in the second half of 2017, and will be completed by way of a plan of arrangement under the Business Corporations Act (British Columbia).
The completion of the transaction will be subject to the approval of at least two-thirds of the votes cast at a special meeting of TIO shareholders and optionholders present in person or represented by proxy at the meeting, by: (i) TIO shareholders; (ii) by TIO shareholders and optionholders, voting together as a single class; and (iii) a majority of the votes cast by TIO shareholders present in person or represented by proxy at the meeting, excluding for this purpose votes attached to the TIO common shares held by persons described in items (a) through (d) of Section 8.1(2) of Multilateral Instrument 61-101 – Take-Over Bids and Special Transactions.
The meeting of shareholders and optionholders is expected to take place in April, 2017. In addition to TIO securityholder approvals, the transaction is also subject to other closing conditions, including the receipt of approvals relating to TIO’s money transmitter licenses, the expiration or early termination of the applicable pre-merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and court approval in British Columbia, Canada.
The transaction has been approved by the boards of directors of each of TIO and PayPal, and the TIO Board recommends that TIO shareholders and optionholders vote in favor of the Arrangement. The recommendation of the TIO Board was based on the recommendation of a special committee of independent directors of TIO. The financial advisor to TIO, Raymond James Ltd., has provided a fairness opinion to the special committee and board of directors of TIO that, subject to the assumptions, limitations and qualifications set out in such fairness opinion, the consideration to be received by TIO shareholders pursuant to the plan of arrangement is fair, from a financial point of view, to the TIO shareholders.
In addition, TIO shareholders, directors and officers, including funds managed by Core Innovation Capital, Napier Park Financial Partners, Edison Partners, Inter-Atlantic Advisors and Inductive Capital, representing approximately 50.4% of the issued and outstanding common shares have agreed to vote their shares in favor of the transaction. The transaction includes customary deal protection provisions, including non-solicitation of an alternative transaction and a termination fee payable to PayPal under certain circumstances.
Further information regarding the transaction will be contained in the management information circular which is expected to be mailed to TIO shareholders in March in connection with the special meeting of TIO shareholders to be held to consider the transaction. Copies of the definitive agreement and the management information circular will also be available under TIO’s SEDAR profile at www.sedar.com. In addition, free copies of the documents may be obtained from TIO’s investor relations website at http://corporate.tionetworks.com/ or by contacting TIO investor relations at investor@tio.com. All TIO shareholders are urged to read the management information circular as it will contain additional important information concerning the transaction.
Advisors
Perella Weinberg Partners LP is acting as financial adviser to PayPal, and Sidley Austin LLP and Blake, Cassells & Graydon LLP are acting as legal advisers on the transaction. Raymond James Ltd. is acting as financial adviser to TIO, and Davies Ward Phillips & Vineberg LLP, and Fasken Martineau DuMoulin LLP and Morrison & Foerster LLP, are acting as legal advisers for the TIO Special Committee and TIO, respectively.
NOTES:
$1 CAD = $0.764 USD
* Consumer bill pay accounts represent the total number of accounts between consumers and billers. A consumer may have a relationship with more than one biller and may have more than one account.
** Source: World Bank Global Findex 2014.
About PayPal
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal (Nasdaq: PYPL) is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. Our open digital payments platform gives PayPal’s nearly 200 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies. For more information on PayPal, visit https://www.paypal.com/about. For PYPL financial information, visit https://investor.PayPal-corp.com.
About TIO Networks
TIO is a cloud-based multi-channel bill payment processing and receivables management provider, serving the largest telecom, wireless, cable, and utility bill issuers in North America. TIO integrates with the back office of billing systems to accept, validate, and collect payments via self-service kiosk, retail walk-in, mobile, and web solutions. With approximately 60 million transactions processed in fiscal 2016 and a processing network that serves more than 10,000 billers, TIO symbolizes fast, convenient, and secure access to expedited bill payment services.
Ya. I agree Campst. Easy to call it 'easy' after the fact.
In a year they will say the easy money was made between $1 and $5.
Expecting some consolidation in the short term ahead of the next leg up. Looking forward to the next big move/news.
GLTA & JMO
I like the comment about 'easy money'. I my experience, money is never 'easy'....or maybe its just me...
....but what do I know?
cheers
Another nice day in a very strong week so far.
Lets see what happens tomorrow.
GLTA & JMO
New 52 Week high. Definitely some buying interest as we continue into 2017.
She has legs, and she knows how to use them.
Great job to Hamed and team.
GLTA & JMO
CEO of Tio Networks Three-peats as Canadian Tech Executive of the Year.
Nice work Hamed and team!
Go Tio!
GLTA & JMO
From Peter Hodson on BNN - Market Call:
2017-01-18
This is becoming a bit of a FinTech play. They offer bill payment services for people in the US and people without bank accounts. People who don’t have bank accounts is actually a very big part of the world economy. This made a great acquisition last year. Stock continues to hit new highs, pretty much on a daily basis. The market cap is growing, so more people are interested in it now. Some of the easy money has been made, but it still has potential. Definitely has good characteristics.
GLTA & JMO
New 52 week high here.
Looks like price targets were bumped up by a few analysts.
$4.80 looks to be the the forward looking consensus.
GLTA & JMO
Thanks for the testimonial.....
You must be very happy !
She's got legs here.
$3.15
and strong support.
GLTA & JMO
Welcome!
We just hit a new 52 week high at $3.
;)
GLTA & JMO
Greetings!
I first invested in Tio networks a number of years back when it was trading in the $.30's Canadian. Needless to say it has been VERY rewarding and is now my largest single holding.
Management is TOP NOTCH and has turned this company into a cash machine. I'm not planning on selling any time soon as there is plenty of room for this company to grow imo....
...but what do I know?
cheers
Might break through $3 today.
GLTA & JMO
Fresh 52 week high. AGAIN.
Longs must be loving this one.
Continues to perform.
GLTA & JMO
Even With Raised Expectations, Tio Networks Still Has Room To Appreciate
Jan.13.17 - Dan Stringer
Tio Networks has spent most of 2016 integrating its game-changing acquisition of Softgate Systems.
Tio has achieved significant cost savings during this process, while also beginning to cross-sell its services to its expanded client base.
Tio's business model is beginning to generate a substantial float for its operations.
Please note that due to the higher liquidity of Tio Networks on the TSX exchange via the ticker TNC.V, all amounts in this article are in Canadian dollars. This is consistent with its reporting currency.
In the course of my investing career, I have learned it is worthwhile to go back and revisit the thesis on an investment to ensure it remains valid, whether or not its share value is up or down. Early on, I did this only for companies where the share price had gone down as I wanted to find out where I had gone wrong. I have always struggled with when to sell my winners, even though I do use a trailing stop methodology in most cases to take this decision out of my hands. Small and micro-cap companies can have wild swings, which sometimes are not supported by the trailing stop methodology.
When I first profiled Tio Networks Corp. in July of 2015, its shares were trading at $1.12 CAD; today shares sit at $2.88, a gain of 157.1%. In a subsequent follow-up article in January of 2016 after shares had run up to $2.20, I argued that Tio continued to be a discounted growth stock. A year later, it is time to review the Tio Networks story as to whether it still remains a good value.
As a brief refresher, Tio Networks Corp. is part of the growing FinTech industry. It is a cloud-based provider of bill payment and receivables management services, with focus on telecom, wireless, cable and utility businesses. Its system integrates with these front end providers in order to facilitate payment by those who fall outside the traditional banking system, the so-called "under-banked."
According to a recent FDIC survey, almost 20% of Americans are either un-banked or under-banked in 2015, the same percentage as in 2013. Within this amount, the un-banked percentage fell from 7.7% to 7.0%. This percentage has fallen as companies like Tio Networks have been providing services to people to whom the current banking system doesn't support.
Operations
Over the last year, Tio has been integrating Softgate Systems into its business platform. One of the big benefits of the acquisition to Tio was that Softgate was a licensed money transmitter in 46 states and the District of Columbia. Due to the change in control, all the regulatory filings had to be done to transfer these licenses to Tio in order for it to operate going forward. This was a much easier process than it would have been to go it alone, but it still took time to execute but still took some time in order to get all the approvals in place before the transaction could officially close.
The rationalization of the combined operations took place in parallel, with Tio announcing in October 2016 that the first phase of the integration process was done. Results were positively impacted almost immediately, as we can see in Tio's quarterly results where its adjusted EBITDA has improved for 8 straight quarters:
Source: 2017 Q1 MD&A
In my original analysis, I had estimated their margins going forward at about 40%. This has proven quite low with Q1 2017's gross margin at 48.8%, which even included some one-time costs associated with retention bonuses associated with the Softgate acquisition. The synergies I had anticipated are likely much higher than I had anticipated (management has estimated them at $6m in EBITDA annually). It may also be that we have more clarity on the actual performance of the old Softgate business now that it is publicly reported.
Tio's revenues have not marched up in a linear manner. Even before the integration of the Changesmart and Softgate acquisitions, Tio's revenues varied quarter to quarter, though in an overall uptrend. This can be driven by different billing cycles and the timing of payments with different customers. Based on the company announcement in October, they have spent a lot of time reorganizing the company's business lines as well as rationalizing the business. This has clearly helped the bottom line, but it also looks like some in-roads into cross-selling its products have been taking place as well..
Read more: http://seekingalpha.com/article/4036681-even-raised-expectations-tio-networks-still-room-appreciate
Red Again.....
Fresh 52 week high today.
Next week should be fun with the presentation at the conference and the meetings thereafter.
Looking forward to breaking $3.
GLTA & JMO
It's in the pipe alright....about to be flushed...
The next 5 years are going to be epic with the trajectory we are on.
Also everything in the pipe and the new visibility with the recent M&A.
Organic growth and huge world class partners.
SKY is the limit.
GO TIO NETWORKS.
GLTA & JMO
still time for this Canadian pink !
OS is under 100 Million.
Over a BILLION is what the stinky stocks usually put out there.
Hate to own one of those when TNC is providing this much upside.
GLTA & JMO
lol....the next 5 yrs will tell the tale....
the party is over, turn out the lights !
lol.....the bid is swelling....
so is the OS....
NEW 52 WEEK HIGH.
And the spread is ramping up. Bid is swelling.
Will post balance of trades AH.
GLTA & JMO
lol.....no truth to any of that....
no, the 52 week high is long gone....
this pos is toast !
52 week lows are long gone. LOL
I wish I could buy at those levels now.
Will have to settle for a NEW 52 WEEK HIGH.
GLTA & JMO
Check the chart.
Been loading for 8 years at .40
Management and partners like AT&T are providing rapid growth; organic and through M&A.
Up for another couple awards next week.
Going to break through $3 pretty soon here.
Watch and learn.
GLTA & JMO
Yep, the time to buy was at the 52 week low...not the high..
It falls down now, like clockwork !
'Dead money' as it hits 52 week high with higher than average volume?
LMFAO
I'll take it!
GLTA & JML
dead money.....period...
but thanks anyway !
Saying it over and over doesnt make it right.
TSXV: TNC - It says it right up there on the board.
Investing 101.
Follow the charts.
Stay away from pinkyland.
GLTA & JMO
like I said, junk.....
Stink pink...period...
LOL
Paid analysts? Better do some more DD as the investment firms are some of the biggest.
Typical pinky mentality.. TNC is not a pink.
Lots of stinky ones out there trading OTC or worse. *wink wink*
GLTA & JMO
yeah, paid analysts are wrong, go figure !
Love the look of dead money on an upward trajectory. LOL
Major firms and analysts disagree.. but whatever works.
New 52 week high. And more to come as they are presenting at the Cantechletter Event on the 18th.
GLTA & JMO
I did....pos...
Its not a pink.
May want to do some DD on this one.
GLTA & JMO
Canadian pink, that says it all !
NEW 52 week high.
:)
I cant even make this stuff up.
GLTA & JMO
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TIO is the leading multi-channel expedited bill payment processor serving the largest Telecom, Wireless, Cable and Utility bill issuers in North America.
With over 58,000 endpoints to its processing network, TIO symbolizes fast, convenient and secure access to expedited payment services.
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