Fintech
Quendale Capital Corp. Enters into Letter of Intent for Qualifying Transaction with Prairie Storm Energy Corp.
Vancouver, British Columbia–(Newsfile Corp. – August 31, 2020) – Quendale Capital Corp. (TSXV: QOC.P) (“Quendale”), a capital pool company under TSX Venture Exchange (“TSXV” or the “Exchange”) Policy 2.4 (the “CPC Policy”), is pleased to announce that it has entered into a letter of intent (the “LOI”) dated August 26, 2020 with Prairie Storm Energy Corp. (“Prairie Storm”), whereby the parties have agreed to negotiate a definitive agreement (the “Definitive Agreement”) related to a proposed business combination (the “Acquisition”) which will result in a reverse take-over of Quendale (the combined entity hereinafter referred to as the “Resulting Issuer”) for purposes of completing a Qualifying Transaction (as defined in the CPC Policy). The Acquisition represents an arms’ length Qualifying Transaction between Quendale and Prairie Storm for the purposes of the CPC Policy. When the Definitive Agreement between Quendale and Prairie Storm is executed, in accordance with the policies of the TSXV, Quendale will issue a more comprehensive press release containing additional details of the Definitive Agreement and terms of the Acquisition.
About Quendale
Quendale is a “capital pool company” that completed its initial public offering in June 2018. The common shares of Quendale are listed for trading on the TSXV under the stock symbol QOC.P. Quendale has not commenced commercial operations and has no assets other than cash. Quendale currently has issued and outstanding 3,360,000 common shares (2,010,000 common shares subject to escrow), 300,000 stock options and 100,000 broker warrants. It is intended that the Acquisition, when completed, will constitute the “Qualifying Transaction” of Quendale pursuant to the CPC Policy. Quendale was incorporated under the Business Corporations Act (British Columbia) and its head and registered office is located in Vancouver, British Columbia.
About Prairie Storm
Prairie Storm is a focused oil and gas Cardium producer, active in the Willesden Green and Ferrier areas of Alberta. In the second quarter of 2020, Prairie Storm produced on average 2,143 boe/d of high netback production, weighted 53% to liquids, that enjoys low operating costs due to the strategic ownership and control of key infrastructure including pipelines, compression and processing facilities. Prairie Storm owns and operates several units under water flood which have very low decline rates due to pressure support. With a large, primarily contiguous land base of approximately 107 gross sections (77 net), and the successful drilling and delineation of 13 horizontal Cardium oil wells, Prairie Storm has booked 28.5 million boe of reserves at December 31, 2019 and maintains a large inventory of booked and un-booked locations. Prairie Storm is debt free with an undrawn credit facility and enjoys a high working interest in excess of 70% in its largely operated base of production. Prairie Storm, as of the date hereof, has 76,331,514 common shares issued and outstanding and no issued warrants, options or other securities. Prairie Storm was incorporated under the Business Corporations Act (Alberta) and its head and registered office is located in Calgary, Alberta.
Summary of Acquisition
As part of the Acquisition, Quendale and Prairie Storm intend to combine their respective businesses and continue under the name of “Prairie Storm Energy Corp.”. Quendale and Prairie Storm are continuing to evaluate possible structures to effect the Acquisition based on further diligence and discussions with their respective legal and tax advisers, including effecting the Acquisition by way of a share exchange, merger, amalgamation, arrangement, takeover bid or other similar form of transaction. As such, due notice will be provided in accordance with the applicable policies of the TSXV and securities laws if a special meeting of shareholders to approve the Acquisition is required.
Pursuant to the terms of the LOI, subject to execution of a definitive acquisition agreement and receipt of applicable regulatory and TSXV approvals, the terms of the Acquisition contemplate a share exchange of the 76,331,514 outstanding common shares of Prairie Storm at a ratio of approximately 1:1.883233. Accordingly, if the Acquisition is completed, and all outstanding Quendale options and warrants are exercised, it is expected that the Resulting Issuer will have approximately 147,110,026 common shares issued and outstanding (on a non-diluted basis).
It is intended that the Resulting Issuer will carry on the business as previously carried on by Prairie Storm prior to completion of the Acquisition. The current head office of Prairie Storm, located at 2000- 215 9 Ave SW, Calgary AB, T2P 1K3, shall continue to be the head office of the Resulting Issuer.
Reserve Information Concerning Prairie Storm
Prairie Storm has obtained a third-party independent reserve report effective December 31, 2019 from Sproule Associates Limited (“Sproule”) on all of its major oil and gas reserves in accordance with National Instrument 51-101 – Standard of Disclosure for Oil and Gas Activities (“NI 51-101”) which is summarized below. Sproule is a qualified reserve evaluator in accordance with NI 51-101.
Summary of Oil and Gas Reserves
Light & Medium Oil |
Conventional
Natural Gas |
Natural Gas Liquids | ||||
Reserves Category |
Company
Gross
Mbbl |
Company
Net
Mbbl
|
Company
Gross
MMcf |
Company
Net
MMcf
|
Company
Gross
Mbbl |
Company
Net
Mbbl
|
Proved | ||||||
Producing | 1,752 | 1,559 | 15,014 | 13,858 | 1,359 | 1,112 |
Undeveloped | 7,081 | 6,325 | 42,204 | 39,261 | 3,038 | 2,661 |
Total Proved | 8,833 | 7,884 | 57,218 | 53,119 | 4,396 | 3,773 |
Total Probable | 2,324 | 1,898 | 13,936 | 12,865 | 1,060 | 858 |
Total Proved plus Probable | 11,157 | 9,782 | 71,155 | 65,985 | 5,456 | 4,631 |
Oil Equivalent | ||
Reserves Category |
Company
Gross
Mboe
|
Company
Net
Mboe
|
Proved | ||
Producing | 5,613 | 4,980 |
Undeveloped | 17,153 | 15,530 |
Total Proved | 22,766 | 20,510 |
Total Probable | 5,706 | 4,900 |
Total Proved plus Probable | 28,471 | 25,410 |
Net Present Value of Future Net Revenue | ||||||||||||
Net Present Values | Net Present Values | Unit Value | ||||||||||
of Future Net Revenue | of Future Net Revenue | Before Income Tax | ||||||||||
Before Income Taxes | After Income Taxes | Discounted at | ||||||||||
Discounted At (%/year) | Discounted At (%/year) | 10%/year | ||||||||||
Reserves Category |
0%
M$ |
5%
M$
|
10%
M$
|
15%
M$
|
20%
M$
|
0%
M$
|
5%
M$
|
10% M$
|
15%
M$
|
20%
M$
|
$/boe | $/Mcfe |
Proved | ||||||||||||
Producing | 59,496 | 64,968 | 56,398 | 48,796 | 42,974 | 38,787 | 48,624 | 42,851 | 37,172 | 32,746 | 11.32 | 1.89 |
Undeveloped | 341,652 | 208,073 | 134,958 | 91,863 | 64,562 | 261,610 | 156,386 | 98,098 | 63,759 | 42,124 | 8.69 | 1.45 |
Total Proved | 401,148 | 273,041 | 191,356 | 140,659 | 107,537 | 300,397 | 205,010 | 140,948 | 100,931 | 74,869 | 9.33 | 1.55 |
Total Probable | 180,266 | 111,707 | 79,110 | 60,925 | 49,415 | 138,537 | 85,798 | 60,576 | 46,528 | 37,652 | 16.15 | 2.69 |
Total Proved plus Probable | 581,414 | 384,748 | 270,465 | 201,585 | 156,952 | 438,934 | 290,807 | 201,524 | 147,459 | 112,522 | 10.64 | 1.77 |
*Numbers may not add up due to rounding. |
The reserves are provided on a net before royalty basis in units of thousands of barrels of oil equivalent using a forecast price deck for gas and oil, adjusted for crude quality, in Canadian dollars. The estimated net present value of future net revenues attributable to reserves do not represent fair market value. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
“Proved reserves” are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. “Probable reserves” are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Forecast pricing is based on Sproule’s pricing as at December 31, 2019.
Management of Resulting Issuer
Upon completion of the Acquisition, the individuals indicated below will be appointed as the officers and directors of the Resulting Issuer:
Hugh G. Ross – Proposed President, Chief Executive Officer and Director
In 1990, Mr. Ross was co-founder, President and Chief Executive Officer of Gentry Resources Ltd. (“Gentry”), a Toronto Stock Exchange listed company. Under Mr. Ross’ stewardship, Gentry grew to over 5,000 boe/d of production and held approximately 430 net sections of undeveloped land in Southern Alberta until it was sold to Crew Energy Inc. in August 2008 for proceeds of approximately $300 million.
He was also a founder of Stratic Energy Corp. (“Stratic”) and served as its President & CEO from April 1999 to August 2005. Stratic was an international exploration company with exploration activities in Syria, the North Sea, Black Sea offshore Turkey, Gabon and Ivory Coast West Africa, and onshore Morocco. Stratic was sold to EnQuest PLC, the largest independent oil and gas producer in the UK North Sea.
Mr. Ross served as Chief Executive Officer and President of Novus Energy Inc. (“Novus Energy”) from March 2009, when the company was recapitalized, through to October 2014. Novus Energy, a junior oil and gas company with high netback light oil reserves and production in Alberta and Saskatchewan, had production of 4,500 boe/d at the time of Mr. Ross’ departure. Novus Energy was sold in January 2014 for approximately $320 million to a wholly owned subsidiary of Yanchang Petroleum International Limited (“Yanchang”), an oil and gas producer and refined oil wholesale and retail business whose stock is listed on the Hong Kong Stock Exchange. Yanchang is controlled by Shaanxi Yanchang Petroleum (Group) Co. Ltd which was the fourth largest oil producer in China with $25 billion annual revenue in 2012.
After leaving Novus Energy, Mr. Ross co-founded and became President and Chief Executive Officer of Prairie Storm. In early 2015 the company closed a large equity financing commitment with a leading US private equity firm. Prairie Storm is focused on acquiring, developing and exploiting industry leading, large scale oil and gas assets in select regions of Western Canada.
Roderick Keith MacLeod – Proposed Director
Mr. MacLeod held the position of Chief Executive Officer and Chairman of the Board of Sproule and its subsidiaries, until his retirement on June 30, 2014. In this position, he was responsible for overseeing its Canadian, U.S., International, Unconventional and Project Management businesses. His worldwide experience at Sproule was primarily in the areas of reservoir engineering, oil and gas reserves/resource evaluations, expert witness testimony, investment advice and education.
Mr. MacLeod lectured at the University of Calgary for many years and presented to industry on oil and gas disclosure related matters. Mr. MacLeod has been an industry advisor to the Alberta Securities Commission (“ASC”). He was one of the authors of the Canadian Oil and Gas Evaluation Handbook and a member of the ASC’s industry taskforce, whose recommendations formed the framework for NI 51-101.
Mr. MacLeod is active with the Society of Petroleum Engineers having served as the Canadian Regional Director on the international board as well as chair of the Canadian Section. He is also a member of the Society of Petroleum Evaluation Engineers and Association of Professional Engineers and Geoscientists of Alberta (“APEGA”).
Mr. MacLeod is Lead Director of Paramount Resources Ltd., Chair of the Canada-Nova Scotia Offshore Petroleum Board and the Veschuren Centre for Sustainability in Energy and the Environment at Cape Breton University. He is also a director of Prairie Storm and ETX Systems Inc.
Bruce G. Waterman – Proposed Director
Mr. Waterman is a Corporate Director, currently serving on the Boards of Ovintiv Inc., Irving Oil Limited and Prairie Storm.
Mr. Waterman retired in January 2013 from Nutrien Ltd. (formerly Agrium Inc.) as Executive Vice President, having held senior roles as Chief Financial Officer, as well as in business development and strategy since April 2000. He was Vice President and Chief Financial Officer of Talisman Energy Inc., a public oil and gas company, from January 1996 to April 2000. Prior to Talisman Energy Inc., Mr. Waterman spent 15 years (1981 to 1996) at Amoco Corporation (“Amoco”), including Dome Petroleum Limited, a predecessor company. At Amoco (a global chemical, oil and gas company which merged with British Petroleum in 1998), his roles included various positions in finance, accounting and business development.
Mr. Waterman holds a Bachelor of Commerce (Honours) from Queen’s University and is a Chartered Accountant. He was chosen as Canada’s CFO of the Year in 2008 and named a Fellow of the Institute of Chartered Accountants of Alberta in 2011. He is past Chair and a member of the Selection Committee of Canada’s CFO of the Year Award and is a member of the Advisory Board of FEI Canada’s CFO Leadership Beyond Finance Program.
Julian Din – Proposed Vice President, Business Development and Director
Mr. Din is currently the VP of Business Development of Prairie Storm. Previously, he was VP Business Development of Novus Energy. Mr. Din joined Novus Energy in 2009 to assist with the recapitalization of the company and to help spearhead its growth initiatives. Under Mr. Din’s guidance, Novus Energy’s production grew from less than 300 boe/d to nearly 4,500 boe/d at the time of sale to Yanchang in January 2014.
From 1994 to 2009 Mr. Din held various roles in the securities industry where he was primarily involved in raising equity and debt capital for public and private energy companies and advising companies concerning merger and acquisition activity.
Mr. Din holds a Masters of Business Administration (M.B.A.) from Pepperdine University and a Bachelor of Commerce (B. Comm) from the University of Calgary.
Ketan Panchmatia – Proposed Vice President, Finance & CFO
Mr. Panchmatia was appointed the VP Finance & CFO of Prairie Storm in February 2015. Prior thereto, Mr. Panchmatia was the VP Finance and Chief Financial Officer of Novus Energy. Mr, Panchmatia joined Novus Energy in March 2009 to assist with the company’s recapitalization efforts and future growth.
Prior to Novus Energy, Mr. Panchmatia was with Gentry until August 2008 at which time it was sold to Crew Energy Inc. Mr. Panchmatia held various positions throughout his career at Gentry, and was eventually appointed Chief Financial Officer in 1996 and VP Finance in 2001.
Mr. Panchmatia gained international exposure with his time at Stratic. Mr. Panchmatia was VP Finance and CFO of Stratic from March 1999 through October 2005, at which time he left the company to more fully focus his efforts on Gentry.
Greg Groten – Proposed Vice President, Exploration
Mr. Groten is currently the VP of Exploration of Prairie Storm. Previously, he was VP Exploration of Novus Energy, being one of the five executives which formed Novus Energy through the re-financing of Regal Energy Inc. in March 2009. He has had roles of increasing responsibility both in geo-technical roles as well as in management at publicly traded companies, including his role as Vice President Exploration at Gentry until August 2008. He brings over 30 years of technical and management experience to his role as Vice President of Exploration.
Mr. Groten holds a Bachelor of Science degree with Specialization in Geophysics from the University of Alberta and is a registered Professional Geophysicist with APEGA and is a registered Professional Geoscientist in British Columbia.
Rob Morrison – Proposed Vice President, Operations
Mr. Morrison brings with him 26 years of progressive experience in many facets of Engineering and Management within the upstream oil and gas industry. The last 15 years of his career have been spent in senior management roles with junior producers while still remaining active on the technical side.
Mr. Morrison began his career working for Placid Oil Company’s Canadian district office where he gained exposure to the entire range of engineering duties (drilling, completions, production, exploitation and marketing). He completed his 10 year stint at the company in 1995 as Engineering Manager at which time the Canadian assets were acquired by Tarragon Oil and Gas (“Tarragon”). He then worked for Tarragon for an approximate 3 year period both as a Production Manager and subsequently as an Exploitation Engineer. Morrison then worked for CEC Resources initially as VP Engineering for a one year period prior to being appointed as President around the same time that the company changed names to Carbon Energy Corporation (Canada) (“Carbon Energy”). The company grew over the next four years increasing production approximately seven-fold while issuing no further shares to fund any of the Canadian growth. Carbon Energy was ultimately sold in 2003 to Evergreen Resources out of Denver. Mr. Morrison then became a founder of Element Energy Canada which was subsequently acquired by Reliable Energy Ltd. (“Reliable”). He worked at Reliable as Vice President Engineering and Operations until its acquisition by Crescent Point Energy in May 2012 for a purchase price of just under $100 million. Lastly Mr. Morrison spent time at Questerre Energy Corporation as VP Operations, Western Canada then as COO where he was responsible for the Western Canadian assets within the company as well as the engineering, geological and land department functions until year end 2013.
Mr. Morrison has a Bachelor of Science Degree in Engineering from the University of Calgary and is a registered Professional Engineer with APEGA.
Conditions
Closing of the Acquisition is subject to a number of conditions including, but not limited to, the following:
- no change in the affairs of Prairie Storm or Quendale that would have a material adverse effect;
- the representations and warranties of each party in the Definitive Agreement remaining accurate at and as of the closing of the Acquisition;
- absence of any government or regulatory order that would adversely affect the Acquisition; and
- all necessary regulatory and other material third party approvals, including approval by the TSXV and if required, by a court of competent jurisdiction, being obtained.
Special Meeting of Quendale Shareholders
The Acquisition will be carried out by parties dealing at arm’s length to one another and therefore will not be considered a “Non-Arm’s Length Qualifying Transaction” as such term is defined under the policies of the TSXV. As a result, a special meeting of the shareholders of Quendale is not required by the TSXV to approve the Acquisition.
Sponsorship
Sponsorship of a qualifying transaction of a capital pool company is required by the TSXV unless exempt in accordance with the policies of the TSXV. Quendale intends to apply to the TSXV for an exemption from the sponsorship requirements; however, there is no assurance that Quendale will obtain such exemption.
Trading in the common shares of Quendale will remain suspended until certain required documents have been provided to the TSXV and the Acquisition is complete.
Additional Information
All information contained in this press release with respect to Quendale and Prairie Storm was supplied by the parties respectively for inclusion herein, without independent review by the other party, and each party and its directors and officers have relied on the other party for any information concerning the other party.
Quendale and Prairie Storm will provide further details in respect of the Acquisition in due course by way of press release. However, Quendale and Prairie Storm will make available to the TSXV, all information including financial information as required by the TSXV and will provide, in a press release to be disseminated at a later date, required disclosure.
For further information:
Quendale Capital Corp.
Richard A. Graham, President, Chief Executive Officer, Chief Financial Officer, Corporate Secretary, and Director
(604) 488-8717
Prairie Storm Energy Corp.
Hugh G. Ross, President and Chief Executive Officer
(403) 774-2901
Oil and Gas Measures & Abbreviations
Barrels of Oil Equivalent – This news release discloses certain production information on a barrels of oil equivalent (“boe”) basis with natural gas converted to barrels of oil equivalent using a conversion factor of six thousand cubic feet of natural gas (“Mcf”) to one barrel (bbl) of oil (6 Mcf:1 bbl). Condensate and other Natural Gas Liquids (“NGLs”) are converted to boe at a ratio of 1 bbl:1 bbl. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based roughly on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at sales point. This conversion conforms with Canadian Securities Regulators’ National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. Although the 6:1 conversion ratio is an industry-accepted norm, it is not reflective of price or market value differentials between product types. Based on current commodity prices, the value ratio between crude oil, NGLs and natural gas is significantly different from the 6:1 energy equivalency ratio. Accordingly, using a conversion ratio of 6 Mcf:1 bbl may be misleading as an indication of value.
Mcfe Conversions: Thousands of cubic feet of gas equivalent (“Mcfe”) amounts have been calculated by using the conversion ratio of one barrel of oil (1 bbl) to six thousand cubic feet (6 Mcf) of natural gas. Mcfe amounts may be misleading, particularly if used in isolation. A conversion ratio of 1 bbl to 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value.
Reader Advisory
Completion of the Acquisition is subject to a number of conditions, including, but not limited to, Exchange acceptance and if applicable pursuant to Exchange requirements, majority of the minority shareholder approval. Where applicable, the Acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the Acquisition will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Acquisition, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The Exchange has in no way passed upon the merits of the Acquisition and has neither approved nor disapproved the contents of this press release.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “will”, “estimates”, “believes”, “intends” “expects” and similar expressions which are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the Acquisition, the expected composition of the board of directors of the Resulting Issuer, the completion and timing of the application to the TSXV in respect of the Acquisition, the proposed structure by which the Acquisition is to be completed, the ability of Quendale and Prairie Storm to meet the conditions of the Qualifying Transaction in the required timeframes, obtaining the necessary exemptions and approvals from the TSXV or other regulatory bodies, including the business, name and function of the Resulting Issuer and certain financial information and forecasts. Quendale cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of Quendale and Prairie Storm, including expectations and assumptions concerning Quendale, Prairie Storm, the Resulting Issuer, the Acquisition, the negotiation of the Definitive Agreement on satisfactory terms, the timely receipt of all required shareholder, Court, TSXV and regulatory approvals (as applicable), the satisfaction of other closing conditions in accordance with the terms of the Definitive Agreement, as well as other risks and uncertainties, including those described in Quendale’s final prospectus dated May 10, 2018 filed with the British Columbia Securities Commission, the ASC and the Ontario Securities Commission and available on www.sedar.com. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Quendale. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release are made as of the date of this press release, and Quendale does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/62884
Fintech
Fintech Pulse: Today’s Key Industry Developments, Appointments, and Regulatory Challenges
The Changing Landscape of Global Fintech
The financial technology (fintech) industry continues to evolve at a rapid pace, making headlines worldwide. Today’s briefing dives into transformative moves and strategic shifts within fintech companies across diverse geographies. From innovative alliances to prominent executive appointments and ambitious expansions into banking, the industry is positioning itself for a future that intertwines financial inclusivity, regulatory compliance, and customer-centric technology. Let’s unpack these developments.
XTransfer’s Hong Kong Fintech Week Entry: Scaling Financial Access in China
XTransfer, a Shanghai-based cross-border financial services firm, has joined the Hong Kong Fintech Week to showcase its solutions, marking a significant milestone in its journey to bridge financial gaps for small and medium-sized enterprises (SMEs) in China. Founded in 2017, XTransfer addresses common barriers faced by Chinese SMEs in accessing international financial networks due to regulatory complexities. The firm’s platform facilitates smoother cross-border transactions by helping businesses navigate regulatory and compliance challenges seamlessly.
The strategic choice to participate in Hong Kong Fintech Week highlights XTransfer’s commitment to strengthening connections within the Asian financial hub. The firm seeks to tap into the region’s wealth of potential clients and partners, as Hong Kong continues to be a pivotal gateway for businesses engaging in cross-border trade with China. The move is also symbolic of the broader fintech community’s push to create inclusive and accessible financial networks, even amid evolving regulatory landscapes.
Source: XTransfer Joins Hong Kong Fintech Week to Expand Global Presence (Yahoo Finance)
Propelld’s New Chief Business Officer: Driving Growth and Product Innovation
Propelld, an Indian ed-finance company, recently appointed Manoj Shetty as its new Chief Business Officer (CBO), signaling a strong commitment to enhancing its market penetration and product offerings. Known for his extensive experience in fintech, particularly in business development and scaling, Shetty is expected to spearhead Propelld’s ambitions to bring tailored financing solutions to India’s education sector.
Propelld focuses on providing student loans and education financing to underserved sections of India, leveraging advanced data analytics to assess borrowers’ potential rather than conventional credit scores. Shetty’s addition to the leadership team suggests that Propelld aims to double down on its innovative data-driven model to better serve the unique financial needs within education.
As the industry grows more competitive, having a seasoned executive like Shetty could be instrumental for Propelld to fortify its unique value proposition. His track record indicates a capacity for handling the nuanced needs of financial services catering to niche markets, and he may well position Propelld to scale sustainably in the expanding ed-finance space.
Source: Propelld Names Manoj Shetty as Chief Business Officer (IBS Intelligence)
Solo Funds Faces Legal Hurdles: The Class-Action Lawsuit Dilemma
In a move that could impact peer-to-peer lending’s regulatory path, Solo Funds faces a class-action lawsuit, alleging that the company’s lending practices breached consumer protection laws. As a platform designed to offer emergency loans to consumers facing cash flow issues, Solo Funds charges “tips” rather than conventional interest rates, a tactic intended to circumvent traditional lending regulations. However, plaintiffs argue that these tips effectively function as disguised interest, making Solo Funds’ practices deceptive and exploitative.
This lawsuit is a critical test for the burgeoning peer-to-peer lending segment, which has grown immensely in recent years as consumers seek alternatives to traditional financial institutions. The outcome may force similar platforms to reassess how they balance operational flexibility with regulatory compliance, potentially reshaping the industry’s approach to short-term lending.
With growing scrutiny on fintech lending platforms, the legal proceedings could also open a wider debate on how fintech firms should transparently operate within the bounds of financial laws. If Solo Funds is found liable, it may prompt stricter regulatory frameworks, affecting peer-to-peer platforms that rely on nontraditional models to attract users.
Source: Lending Fintech Solo Funds Faces Class-Action Lawsuit (TechCrunch)
Slice’s Transformation: A Fintech Company’s Foray into Traditional Banking
India-based Slice, originally a credit-based fintech, has announced its transition into a full-fledged bank, allowing it to offer conventional banking services in addition to its credit solutions. By securing regulatory approval to operate as a bank, Slice aims to expand its product range and deepen its relationship with a fast-growing consumer base in India. This move exemplifies a larger trend of fintech firms seeking to bridge the gap between traditional banking and innovative financial services.
Slice’s venture into banking will also set an intriguing precedent for other fintech companies in India and beyond. The company has successfully carved a niche among young users with its simple, digital credit products. As a bank, it can now offer savings accounts, lending products, and other services, thus creating a one-stop platform that could enhance customer retention and lifetime value.
The expansion to full banking status raises questions about how effectively Slice will manage its dual roles as a fintech innovator and a traditional bank, especially in a market as large and complex as India’s. It also marks a pivot point in the narrative of fintech companies morphing into full-service financial institutions, a trend that is gaining traction globally.
Source: India Fintech Slice Expands to Become a Bank (TechCrunch)
FullCircl’s 2025 Identity Verification Report: Insights into Compliance Challenges
FullCircl, a leading regulatory technology provider, recently released its “2025 State of Identity Verification” report, shedding light on the evolving landscape of identity verification and the challenges businesses face in maintaining compliance. As financial crimes become more sophisticated, firms increasingly invest in identity verification tools to stay ahead. According to the report, over 75% of financial institutions rank identity verification as a critical priority, citing the surge in fraudulent activities as a prime concern.
The report also highlights an industry-wide push towards digital identity systems and the use of artificial intelligence in detecting fraud patterns. As regulatory demands tighten and compliance risks rise, firms are urged to adapt swiftly. FullCircl’s findings underscore a need for seamless, real-time verification solutions that do not compromise customer experience—a delicate balance to maintain as identity verification protocols become more stringent.
The insights from FullCircl’s report reveal a heightened industry focus on ensuring robust identity frameworks that foster trust without hindering the ease of digital transactions. This growing demand aligns with broader trends where digital trust is crucial in retaining customers and enhancing their satisfaction.
Source: FullCircl Releases 2025 State of Identity Verification Report (PR Newswire)
The post Fintech Pulse: Today’s Key Industry Developments, Appointments, and Regulatory Challenges appeared first on HIPTHER Alerts.
Fintech
Xsolla significantly expands payment solutions in Cambodia and Indonesia to maximize game developers’ reach
Xsolla, a global video game commerce company, is pleased to announce the expansion of its payment solutions in Cambodia and Indonesia, providing access to localized payment methods tailored to each region. This initiative aligns with Xsolla’s broader strategy to strengthen its presence across Southeast Asia (SEA) and support game developers in effectively monetizing and distributing their games in these rapidly growing markets.
In Cambodia, Xsolla introduces eight new payment methods, including Internet banking options and digital wallets, tailored to the preferences of Cambodian users. This strategic expansion covers up to 90% of the payments market, ensuring that nearly every player in Cambodia can pay using their preferred method. For example, Bakong KHQR, a QR code-based payment system, holds 45% of the market share, while Acleda Bank accounts for 15%. Supported by the country’s ongoing digital transformation, with digital payment transactions surging by 28.7%, these solutions, including Wing Money, Pi Pay, and others, will enable game developers to reach nearly 2 million gamers in Cambodia, facilitating seamless checkout experiences and boosting sales.
In Indonesia, Xsolla is introducing several new payment methods to help game developers tap into the country’s vast gaming market, with over 185 million gamers out of a 275 million-strong population. Approximately 80% of consumers in Indonesia are unbanked or underbanked. With smartphone penetration reaching up to 80%, Alternative Payment Methods (APMs) are the most preferred option in Indonesia. By integrating these APMs, Xsolla can cover up to 90% of the market. This includes E-wallets, which account for 39% of the market, Bank Transfers at 27%, Cards at 17%, and Cash at 11%. Popular platforms such as ShopeePay, Jenius, and Akulaku are among the new payment options, simplifying transactions for Indonesian gamers and boosting market reach for game developers in one of the fastest-growing digital markets globally.
“Xsolla’s commitment to empowering game developers to access new markets is central to our mission. By introducing localized payment methods in Cambodia and Indonesia, we provide our partners with the tools they need to succeed in these dynamic and rapidly growing gaming environments. This expansion is part of our ongoing efforts to support developers globally and help them overcome payment challenges,” said Chris Hewish, Chief Strategy Officer of Xsolla.
The gaming market in Cambodia is projected to reach $75.21 million by 2027, with mobile games accounting for 66% of the revenue in 2023. In Indonesia, digital transformation opens up significant opportunities for game developers, mainly through localized payment solutions that reduce friction and improve transaction success rates.
The post Xsolla significantly expands payment solutions in Cambodia and Indonesia to maximize game developers’ reach appeared first on HIPTHER Alerts.
Fintech
Ibanera to Spotlight The Future of FinTech at RAK DAO Conference
Ibanera, a leading digital banking platform, is attending the RAK DAO conference this year as one of the primary sponsors. At the event, Michael Carbonara, CEO of Ibanera, will be driving discussion on the future of fintech amongst Web3 leaders, including what this looks like in the Middle East and the RAK DAO ecosystem.
Ibanera’s role at the event will showcase the fintech enablement platform’s commitment to driving innovation and leadership amongst the emerging technology industry as it showcases its latest projects.
Ibanera’s CEO Michael Carbonara will also play a key role at the conference, as he joins global business leaders to discuss the power of interconnectivity during a panel talk that will further highlight the company’s influence as a supportive power to global institutions and financial organisations alike. Within this talk, Carbonara will be exploring the RAK DAO vision, mapping a decentralized world built within a well-integrated ecosystem for which collaboration, partnerships and innovation mark key pillars of success.
“As the fintech space continues to pursue greater connections across the global Web3 and decentralized landscape, the more we are able to map out what the future of finance looks like and how it will shape businesses and banking”, said Michael Carbonara, CEO of Ibanera. “The RAK DAO Conference is a cornerstone moment for the industry to get together and explore this exciting world of innovation, and I’m looking forward to hearing fresh perspectives from leaders within the community”.
As a key partner for this year’s RAK DAO conference, the MENA region’s premier blockchain and Web3 summit, Ibanera continues to devote its focus on the innovative Web3 momentum in the Middle East. Carbonara’s panel discussion at RAK DAO 2024 this year will occur on October 25th in Ras Al Khaimah, UAE.
The post Ibanera to Spotlight The Future of FinTech at RAK DAO Conference appeared first on HIPTHER Alerts.
-
Fintech PR6 days ago
H&M Foundation: Global Change Award 2025 launched – with a mission to accelerate innovation for a net-zero textile industry by 2050
-
Fintech PR7 days ago
Ankura Taps Industry Veteran Regina Lee to Lead Risk, Forensics & Compliance Business Globally
-
Fintech6 days ago
ZBD and Finfare partner to offer gamers cash rewards for their everyday purchases!
-
Fintech PR4 days ago
Sentinel Legal Celebrates Victory for Consumers: Landmark Court of Appeal Ruling in Motor Finance Mis-Selling Case
-
Fintech PR5 days ago
Saudi Arabia’s Ministry of Industry and Mineral Resources Invites Mining Companies to Join Its 7th Licensing Round
-
Fintech PR6 days ago
Two Leading Patent Professionals & Intellectual Property Strategists Join Ocean Tomo, a part of J.S. Held
-
Fintech5 days ago
Xsolla significantly expands payment solutions in Cambodia and Indonesia to maximize game developers’ reach
-
Fintech PR6 days ago
Acceleration of global marketing collaboration between Milk Partners, AirAsia rewards, and The Sandbox