Singapore-based firm Triterras Fintech, the company behind the Kratos trade finance platform, and special purpose acquisition company Netfin Acquisition Corp are planning to combine by Q4 this year to create a newly-formed Cayman holding company publicly listed on the Nasdaq Stock Market.
The deal is still subject to checks by the Securities and Exchange Commission (SEC) and approval from Netfin shareholders, however boards from both companies have given the go ahead.
Should the plan be signed off, Triterras Fintech’s management will continue to run the firm, which will be known as Triterras, and retain 61.5% ownership of the company. A board of seven will be formed, with two appointees from Netfin.
The combined company will have a US$674mn pro forma enterprise value, and a US$854mn pro forma market cap and no debt, assuming no redemptions from Netfin’s shareholders.
In a statement, Netfin says that estimated net cash proceeds to the balance sheet totalling some US$180mn will be used to “support Triterras’ exponential organic growth, expanded geographies, supply chain financing and additional platform modules”.
Netfin had initially signed a letter of intent to acquire Triterras Holdings, another subsidiary of the Triterras group – with ties to commodity trader Rhodium Resources – but it ultimately rowed back on this plan.
The firm notes in a statement: “The parties made the strategic decision for Netfin to combine solely with Triterras Fintech and not with its affiliated Rhodium commodity trading business”.
This was “in order to create a standalone, fast-growing fintech pure-play business with a 100% fee-based platform and no balance sheet exposure”, it adds.
Since launching in June 2019 with a trade discovery module, Triterras rolled out trade finance and risk management modules on the blockchain-enabled Kratos platform earlier this year.
With a focus on the commodity sector, Kratos aims to improve access to trade finance, while also making trade more efficient and transparent by digitising trade documents, giving all parties involved in a transaction complete knowledge of its status and progress.
The trade finance module – launched in February – specifically allows SMEs to request financing from alternative lenders. These lenders can then track and manage their investments on the platform.
Speaking to GTR, Triterras chairman and founder Srinivas Koneru says that the platform is looking to onboard lenders and traders in Central and South America, as well as Africa, “sometime early next year, [in the] first or second quarter”.
He adds: “We are also launching a supply chain finance module on the platform. We’re currently working on a pilot, which we plan to launch in the next three or four months.”
Prohibida la reproducción parcial o total. Todos los derechos reservados de Rubicon, Global Trade, Customs & Business Partnership, S.C., del Autor y/o Propietario original de la publicación. El contenido del presente artículo y/o cualquier otro artículo, texto, boletín, noticia y/o contenido digital, entre otros, ya sea propio o de tercero alguno, publicado en nuestra página de internet u otros medios digitales, no constituye una consulta particular y por lo tanto Rubicon, Global Trade, Customs & Business Partnership, S.C., sus colaboradores, socios, directivos y su autor, no asumen responsabilidad alguna de la interpretación o aplicación que el lector o destinatario le pueda dar.