EFactor Group Corp. Acquires RocketHub Inc.
Accesswire
12 minutes ago
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Leading Crowdfunding Platform Will Enable EFactor to Educate Entrepreneurs on Funding Approaches; Synergies Between EFactor.com, ELEQT, and the RocketHub Platform Expected to Solidify EFactor's Funding Division
NEW YORK, NY / ACCESSWIRE / April 16, 2015 / EFactor Group Corp. (EFCT) ("EFactor" or "the Company"), the owner of a group of entrepreneur-focused service companies and EFactor.com, a social network providing content and resources for entrepreneurs worldwide, today announced the acquisition of RocketHub Inc., a New York City based international funding platform ("RocketHub"). EFactor's acquisition of RocketHub is expected to solidify the Company's funding division to provide education on funding approaches, including funding opportunities to its entrepreneur members on EFactor.com.
RocketHub launched in January 2010, and is considered one of America's largest crowdfunding platforms. RocketHub's current management team includes Brian Meece, CEO, Jed Cohen, COO, and Alon Hillel-Tuch, acting as both CTO and CFO. While RocketHub is based in New York City, it operates in over 190 different countries and regions. RocketHub was selected by Bill Clinton and Bill Gates as part of their guest-edited "Ways to Change the World" edition of Wired Magazine.
In 2013, RocketHub teamed up with A&E Networks, making it the first crowdfunding platform to partner with a major television network. The multi-platform initiative, "A&E Project Startup," is focused on supporting entrepreneurs on-air, online and through live events.
RocketHub was also recently selected by the U.S. Department of State as one of 12 top global partners in its 2015 State of Global Partnerships Report.
"Our acquisition of RocketHub is the launching point of our ability to service entrepreneurs with needed content, education and financing options such as crowdfunding all of which are offered by RocketHub," began Adriaan Reinders, CEO of EFactor. "We researched various crowdfunding companies with whom to partner, revenue share or acquire in the past year and RocketHub has distinguished itself through its level of creativity, reach, connections with major media and TV companies such as A&E, and a clear and recognizable entrepreneurial spirit. We look forward to many years of cooperation ahead between us for the benefit of EFactor.com members," Reinders concluded.
"RocketHub is excited to join the EFactor family and expand opportunities for its entrepreneurs across the globe," said Brian Meece, CEO of RocketHub. "The EFactor network, ELEQT community, and RocketHub platform overlap in powerful ways providing for a dynamic and impactful fundraising division."
The acquisition was structured as a merger of a newly formed subsidiary of EFactor with and into RocketHub, where RocketHub survived the merger as a wholly-owned subsidiary of EFactor. In the merger acquisition, RocketHub's shareholders collectively received 21,428,571 shares of common stock, par value $0.001, of EFactor, at a purchase price of $0.70 per share, for an aggregate purchase price of $15 million. Additionally, outstanding convertible promissory notes of RocketHub in the aggregate principal amount of $255,000 (the "Convertible Notes") remain outstanding after the merger, but will be convertible into shares of EFactor's common stock. Convertible Notes with an aggregate principal amount of $95,000 mature on April 27, 2015 and have a conversion price of $1.1751 per share (subject to customary adjustments). However, in connection with the merger, the holders of Convertible Notes with an aggregate principal amount of $160,000 agreed to extend the maturity of their Convertible Notes for a period of approximately four months in exchange for a reduced conversion price of $0.70 per share (subject to customary adjustments).
About RocketHub
RocketHub is an international funding platform that has helped thousands of entrepreneurs raise millions of dollars. Part of RocketHub's mission is to educate the public on the power of the crowdfunding model. As a result, the founders have lectured on crowdfunding at top universities and conferences around the globe, and have even testified in U.S. Congress on the power of online fundraising.
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