First Global Data (FGD.V) is fin-tech enterprise focused on mobile payments and cross border remittance. Through its mobile app (VPayQwik), FGD enables electronic payments via numerous channels: Business to Customer (B2C), Business to Business (B2B), and Peer to Peer lending (P2P).
The company's main assets include its electronic payments and transaction processing solutions, and its money service licenses in Canada and the USA (23 states). In addition, FGD has recently added numerous Central and South American country licenses. These include Argentina, Bolivia, Brazil, Columbia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru and Uruguay.
In the last few months the FGD has built an impressive list of alliances:
1) Vijaya Bank (India)- powers mobile transactions for 12 million potential bank customers.
2) Hidase Telecom (Ethiopia) - powers mobile transactions for 20 million potential users.
3) SelectCore (Canada)- Agreement to create a joint venture for Canada.
4) Aamra (Bangladesh)- MOU for mobile wallet and ecosystem for 14 potential local banks.
5) eGTCP.com (China)- MOU to provide mobile payment services >15,000 potential vendors.
6) Dill Capital and IBS (Nigeria) - build mobile payment services for 10 million potential users.
7) Zoompass (Canada & USA) - LOI for check processing services and loading mobile wallet.
8) Telkash (Canada, USA, UK, Philippines, Vietnam) - Partner to enable remittance and payment
9) Payability (Canada, USA) - Partner to enable remittance and payment.
10) Mobile Lads (USA) -Partner to enable remittance and payment.
11) LianLian Pay (China) - Co-Branded Cross border remittance (Canada, US, to China) via WeChat.
12) Avenue Payment (India) - Agreement to provide remittance and payment via Avenue Payment.
While 25% of these agreements are considered preliminary (LOI and MOU), the company has generated revenue from many of them. In fact, the recent year end earnings (FY 2016) shows that the company grew significantly over the previous year with revenues of $1.8M but has incurred a loss of ($640K). The company has a relatively large debt ($12M) that it claims to have reduced by $5M in the first quarter of 2017.
FGD recently completed a private placement with of $10M at ,70 cents with warrants at ,90 cents. However, the company has also been significantly shorted in the past but the trend seems to be receding. If you are interested in emergent companies in fin-tech space, FGD should be on your list.
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