INSIGHTS - Securter Spin-Out
1. After the Spin-out DIGAF increases its equity position of
Securter from approximately 2% to over 25% - this is good.
2. The previous Definitive Agreement DIGAF was to fund up to
US$3m to buy up to 33% of Securter. DIGA got a Reg 1-A SEC
approved but abandoned it probably because the market didn’t
like the structure, dilution and/or the valuation. After
the Spin-out DIGAF is no longer required to fund; which
reduces dilution, DIGA ends up with approximately the same %
at 1/10th the original cost.
3. DIGA can operate on an annual budget of less than $200k
(FS’s Q’s &K’s) and will cut expenses and keep a low burn
rate during the Covid19 disaster pending Securter launch.
4. Securter can now independently fund their own business
development @ CAD$0.07, they will be able to raise what they
need to launch and get their own skin in the game.
5. DIGA acquires sales licence for billion-dollar growth market
South America.
6. New opportunity, new market with massive growth potential
and Securter has a buy-back clause to pay DIGA market value
as determined by independent valuator.
7. DIGAF has control to fund, not the commitment, South America
in each country or joint venture with the largest PSP’s in
the area. For DIGA to go after SA they must have
relationships perhaps Columbia or Chile or Brazil,
definitely interesting.
8. Buy-back clause where Securter will pay Digatrade fair
market value by an independent evaluator. This could
trigger as soon as Securter gets acquired by Apple or other
major when they roll up the territories and licencing
agreements.
9. Provides great growth opportunity and will generate news and
Press Releases for the next year.
10. Valuation & price target: A comparable was the Mobeewave
acquisition by Apple for US$100m. Securter is better than
Mobeewave and could easily push up Securter valuation to
$200m. At this price, DIGA would own 25% or $50m equity
equivalent and receive cash dividends to redistribute to
DIGAF shareholders; or: DIGAF uses the cash for open market
stock buy- back and then cancel the shares reduce the issued
and outstanding. Current market-cap US$1m share price
$0.001 * 50 = US$0.05 per share. Usually these growth tech
stocks generating net positive cash flow trade minimum 10X
so share price would be $0.50.
11. If Securter launch is successful DIGAF shareholders win –
the share price will soar on massive volume providing
liquidity and trading profits for anyone who wants to sell.
12. Read the risk factors it’s still the Pink Sheets.
