Fintech
Colson Capital Corp. and Pathway Health Corp. Announce Execution of Definitive Agreement and Launch Concurrent Financing
Calgary, Alberta–(Newsfile Corp. – February 2, 2021) – Colson Capital Corp. (TSXV: COLS.P) (“Colson” or the “Corporation“) and Pathway Health Corp. (“Pathway“), a wholly-owned subsidiary of The Clinic Network Canada Inc. (“TCNC“), are pleased to announce that, further to the previously announced letter of intent dated September 12, 2020 between Colson and Cura-Can Health Corp. (“Cura-Can“) (the parent company of TCNC), Colson has now entered into a definitive share exchange agreement dated January 29, 2021 (the “Share Exchange Agreement“) with Pathway and each of its securityholders, pursuant to which Colson shall purchase all of the issued and outstanding shares of Pathway in exchange for the issuance of post-consolidation Colson Shares (as defined below), resulting in the reverse take-over of Colson by Pathway (the “Transaction“) to form the resulting issuer (“Resulting Issuer“). Upon completion of the Transaction, it is the intention of the parties that the Resulting Issuer will continue on the business of Pathway, subject to the terms and conditions outlined below. Colson intends that the Transaction will constitute its Qualifying Transaction, as such term is defined in Policy 2.4 of the TSX Venture Exchange (“Exchange“). In addition, the Transaction constitutes a “Non-Arm’s Length Qualifying Transaction” as defined in Policy 1.1 of the Exchange.
Summary of the Transaction
On or immediately prior to the closing of the Transaction, Colson will consolidate the 8,400,000 common shares of Colson (“Colson Shares“) currently issued and outstanding on the basis of 1 post-consolidation Colson Share for approximately every 2.941 outstanding pre-consolidation Colson Share (the “Consolidation“), resulting in an aggregate of approximately 2,856,171 post-Consolidation Colson Shares issued and outstanding. Completion of the Consolidation is subject to obtaining approval from the shareholders of the Corporation.
The parties to the Transaction are at arm’s length and therefore the approval of the shareholders of Colson in respect of the Transaction will not be required. However, the Corporation will hold a special meeting of its shareholders prior to March 31, 2021, whereat, among other things, the shareholders of Colson will be asked to approve (i) the Consolidation; (ii) the change of name of Colson to “Pathway Health Corp.” or such other name as Pathway may determine; (iii) the appointment of a new slate of directors, conditional upon completion of the Transaction; (iv) the approval of Colson’s rolling 10% stock option plan; (v) the removal of the consequences of failing to complete a qualifying transaction within 24 months of listing; and (vi) the amendment of the escrow terms on Colson Shares in light of the recent amendments to the Capital Pool Company Program of the Exchange (including the release of seed shares from escrow over an 18-month period following completion of the qualifying transaction) (collectively, the “Colson Meeting Matters“).
The Share Exchange Agreement provides that Colson and Pathway will be completing a business combination, pursuant to which: (i) post-Consolidation Colson Shares will be issued to holders of shares of Pathway (“Pathway Shares“) on the basis of one (1) post-Consolidation Colson Share for every one (1) Pathway Share; and (ii) holders of common share purchase warrants of Pathway (“Pathway Warrants“) will be exchanged for common share purchase warrants of Colson on substantially the same terms. On completion of the Transaction, the securityholders of Pathway will own a substantial majority of the issued and outstanding common shares of the Resulting Issuer (“Resulting Issuer Shares“) and Pathway shall become a wholly-owned subsidiary of the Resulting Issuer.
The completion of the Transaction is subject to, among others, the following conditions precedent be met prior to the closing of the Transaction: (a) Pathway and shareholders of Pathway shall have tendered all closing deliveries contemplated in the Share Exchange Agreement; (b) the shareholders of Pathway shall have approved the Share Exchange Agreement; (c) the board of directors of each of the Corporation and Pathway shall have approved the Transaction; (d) Pathway shall have obtained the consent of each of the holders of Subscription Receipts, if any; (e) the Resulting Issuer Shares shall have been conditionally approved for listing on the Exchange, and the Transaction shall have been conditionally approved as a Qualifying Transaction by the Exchange, subject to the customary requirements of the Exchange in respect of transactions of the nature of the Transaction; (f) the Offering (as described below) for gross proceeds of not less than $10,000,000 shall have been completed in escrow pending the completion of the Transaction; (g) all of the conditions necessary to complete the Offering shall have been satisfied (other than the completion of the Transaction); (h) the Corporation shall have convened a shareholder meeting no later than March 31, 2021 and shall have obtained shareholder approval for the Colson Meeting Matters; (i) the existing directors and officers of Colson shall have resigned; and (j) the Transaction shall close no later than April 30, 2021. The terms and conditions of the Transaction may be based on the Corporation’s due diligence (which is limited as the Corporation intends largely to rely on due diligence of other parties to the Transaction to contain its costs, among other things) and the receipt of tax, corporate and securities law advice for both the Corporation and Pathway.
For the purposes of the Transaction the deemed value of each Pathway Share (the “Pathway Share Value“) will be $0.50, such price being based on the pricing of the Offering (as defined below). In connection with the Transaction, the Colson Shares will be consolidated on the basis of one post-consolidation share for every 2.491 pre-consolidation Colson Shares, such basis resulting in the deemed value of the Colson Shares being equal to the Pathway Share Value (the “Consolidation“).
Other Significant Conditions to Closing
Completion of the Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction 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 Transaction, any information released or received with respect to the Transaction 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 proposed Transaction and has neither approved nor disapproved the contents of this press release.
Concurrent Subscription Receipt Financing
As previously announced on November 30, 2020, in connection with the Transaction, Pathway has engaged Canaccord Genuity Corp. (the “Agent“), in connection with the offering of subscription receipts (“Subscription Receipts“) at a price of $0.50 per Subscription Receipt on a private placement basis for aggregate gross proceeds of not less than $10,000,000 (the “Offering“). Under the terms of the Offering, the Agent will be granted an over-allotment option to place up to an additional 15% of the number of Subscription Receipts issuable under the Offering for additional gross proceeds of up to $1,500,000.
On closing of the Offering, the gross proceeds of the Offering, less 50% of the Agent’s Commission (as defined below) and the Agent’s expenses incurred in connection with the Offering, will be held in escrow pursuant to a subscription receipt agreement, pending the satisfaction of the Release Conditions, whereupon the net process of the Offering will be released to Pathway and the balance of the Agent’s Commission will be paid to the Agent.
Each Subscription Receipt will be automatically converted into one unit of Pathway (each, a “Unit“), on the date (the “Escrow Release Date“) that: (i) all conditions precedent to the completion of the Transaction have been satisfied to the satisfaction of the parties but for payment of the cash portion of the purchase price to be paid by Pathway for the operating assets of TCNC; (ii) the Agent has received an officers’ certificate from the officers of each of Colson and Pathway that each party has instructed its counsel to issue the underlying securities upon the release of funds; (iii) the Agent is satisfied, in its reasonable opinion, that since the closing of the Offering, there have been no material changes in the affairs of the Corporation or Pathway and that there is no previously undisclosed fact which has or could be expected to have a significant adverse effect on the market price or value of the securities of the Resulting Issuer; and (iv) a joint notice from Colson and Pathway to the Agent stating that the Transaction has been completed and all conditions precedent to the Transaction have been satisfied or waived (the “Release Conditions“). Each Unit shall consist of one Pathway Share and one-half of one warrant, where each whole warrant shall be exercisable to acquire one Class A share of Pathway for a period of 24 months from the Escrow Release Date at an exercise price of $0.75.
The Agent is entitled to a cash commission payable to the Agent by Pathway on closing of the Offering in an amount of up to 8% of the gross proceeds of the Offering (“Agent’s Commission“). The Agent will also receive broker warrants (the “Broker Warrants“) on closing of the Offering of up to 8% of the total Subscription Receipts sold in the Offering. Each Broker Warrant will entitle the holder thereof to purchase one Resulting Issuer Share at an exercise price of $0.50 for a period of 24 months following the closing of the Offering.
In the event the Transaction does not occur by 5:00 p.m. (Calgary time) on the date that is 120 days from the closing date of the Offering, the gross proceeds of the Offering shall be returned to the purchasers pro rata without any deduction or interest and the Subscription Receipts shall be automatically cancelled.
Subject to applicable laws and the policies of the Exchange, it is anticipated that, upon completion of the Transaction, each Pathway Share issued pursuant to the Offering will be exchanged into one freely tradable Resulting Issuer Share, and each Pathway Warrant shall be exchanged for one Colson Warrant.
It is intended that the net proceeds raised pursuant to the Offering will be used to expand the Resulting Issuer’s portfolio of clinics across Canada, expand its distribution channels, add interdisciplinary pain services to its clinics, and for working capital and general corporate purposes.
Pathway
Pathway was incorporated pursuant to the provisions of the Canada Business Corporations Act on September 18, 2020 for the purposes of completing the transaction (the “TCNC Asset Acquisition“) contemplated under the TCNC Asset Purchase Agreement (as defined below) and participating in the Transaction. On January 18, 2021, Pathway entered into an asset and share purchase agreement with TCNC (the “TCNC Asset Purchase Agreement“), pursuant to which it acquired substantially all of the operating assets of TCNC, including the shares of TCNC’s operating subsidiaries. Since the TCNC Asset Acquisition, Pathway has continued to operate TCNC’s business. Unless otherwise indicated, references to the business of Pathway also include the business as operated by TCNC prior to the closing of the TCNC Asset Acquisition.
Pathway’s principal business is the operation of medical clinics that offer multidisciplinary therapies to patients that suffer from chronic pain, including pharmaceutical and medicinal cannabis-related therapies. The clinical services are delivered in inter-disciplinary pain clinics operated by Pathway and through virtual care by physicians and other health care providers, who are trained in managing chronic pain through proper assessment and multi-modality treatment that includes minimally-invasive approaches, intravenous therapies, allied health methods and the prescription of medical cannabis which is supplied to the patient directly by sellers and producers licensed by Health Canada (“LPs“) under the Access to Cannabis for Medical Purposes Regulations.
Pathway’s physicians and nurse practitioners prescribe medical cannabis to qualified patients from LPs, in accordance with the Cannabis Act (Canada) and regulations. Patient educators then inform qualified patients of LP product options and fulfill the order with the patient’s choice of LP. Pathway operated clinics are not dispensaries and, as such, do not carry inventory or distribute cannabis products.
Pathway generates revenue through the operation of nine physical inter-disciplinary clinics in four provinces, Québec, Ontario, Manitoba and Saskatchewan, and the provision of virtual care across Canada. Pathway’s clinical patient services are paid for by provincial health insurance, third-party insurance companies and privately by patients. Clinical services paid for by provincial and third-party insurance includes: medical assessment and follow-up, multi-modality diagnostic imaging, intravenous therapies, medical implants, nerve block injections and other interventional therapies.
Resulting Issuer
Following completion of the Transaction, the Resulting Issuer will carry on the business currently carried on by Pathway. The Resulting Issuer will be a Life Sciences issuer under the policies of the Exchange.
It is expected that following completion of the Transaction, and assuming that the Offering is fully subscribed (including pursuant to the exercise of the Over-Allotment Option), there will be an aggregate of 88,346,837 Resulting Issuer Shares outstanding, and 22,594,684 Resulting Issuer Shares will be reserved for issuance pursuant to convertible securities of the Resulting Issuer. It is expected that following completion of the Transaction the current holders of Colson Shares will hold approximately 3.2% of the outstanding Resulting Issuer Shares, the subscribers in the Offering will hold approximately 26.0% of the outstanding Resulting Issuer Shares and the holders of Pathway Shares will collectively hold approximately 70.6% of the outstanding Resulting Issuer Shares, all as calculated on a non-diluted basis immediately following the closing of the Transaction.
To the knowledge of the directors and executive officers of the Corporation and Pathway, the only persons who will beneficially own, directly or indirectly, or exercise control or direction over more than 10% of the Resulting Issuer Shares is TCNC, which will hold approximately 58.4% of the Resulting Issuer Shares assuming completion of the Concurrent Financing and exercise of the Agent’s Option (as hereafter defined) in full. TCNC is a wholly-owned subsidiary of Cura-Can, and: (i) Avonlea-Drewry Holdings Inc., a company of which Mr. Michael Steele (a proposed director of the Resulting Issuer) is a director and officer, owns or controls, 10,456,168 Class A Shares of Cura-Can representing approximately 40% of the issued and outstanding shares of Cura-Can; and (ii) Mr. Kim Wei, a proposed officer of the Resulting Issuer, owns or controls, directly or indirectly, 2,649,641 Class A Shares of Cura-Can representing approximately 10% of the issued and outstanding shares of Cura-Can.
Summary Financial Information of Pathway
The following table presents selected financial statement information on the financial condition and results of operations for TCNC prior to the completion of the TCNC Asset Acquisition. Such information is derived from the audited financial statements of TCNC for the years ended December 31, 2019 and 2018 and the unaudited financial statements of TCNC for the period ended September 30, 2020. The information provided herein should be read in conjunction TCNC’s audited financial statements, which will be contained in the filing statement to be filed on SEDAR in connection with the Transaction.
| For September 30, 2020 (unaudited) | For December 31, 2019 (audited) | For December 31, 2018 (audited) |
|
| Current assets | $1,286,808 | $1,438,872 | $451,122 |
| Other assets | $7,998,587 | $7,097,179 | $1,026,206 |
| Total assets: | $9,285,395 | $8,536,051 | $1,477,328 |
| Current liabilities | $20,977,196 | $13,595,416 | $3,805,850 |
| Other liabilities | $3,012,765 | $3,395,256 | $74,787 |
| Total liabilities: | $23,989,961 | $16,990,672 | $3,880,637 |
| Total shareholders’ equity: (Deficiency) | ($14,704,566) | ($8,454,621) | ($2,403,309) |
| Total liabilities and equity: | $9,285,395 | $8,536,051 | $1,477,328 |
Management of the Resulting Issuer
Subject to Exchange approval, upon completion of the Transaction, it is expected that the board of directors and the senior officers of the Resulting Issuer will be the following proposed individuals. Please see below for a brief biography for each proposed individual:
Ken Yoon – proposed Chief Executive Officer, Corporate Secretary and Director
Mr. Yoon has over 20 years of experience in advising, consulting, financing, investing in and building innovative private and public companies with over $500M in transactions both as chief financial officer and investment professional. Mr. Yoon joined Pathway in Q2 2019 having worked most recently as Chief Financial Officer of Acerus Pharmaceuticals Corporation where he was instrumental in raising $27 million in financing. Prior to Acerus, Mr. Yoon was Chief Financial Officer and Vice President of Corporate Development at Vive Crop Protection Inc. Mr. Yoon is a Charter Professional Accountant /Chartered Accountant, holds a B.Sc. from University of Western Ontario, law degree from Queen’s University and MBA from the University of Toronto, and is the recipient of the Queen Elizabeth II Diamond Jubilee Medal.
Aura Balboa – proposed Chief Financial Officer
Ms. Balboa has over 15 years of finance and operations experience. Ms. Balboa began her career in public accounting with Deloitte. She then held a number of finance roles with increasing responsibilities at multiple pharmaceutical companies both in Canada and the U.S. Her most recent role was Director of Finance at Acerus Pharmaceuticals, a Canadian pharmaceutical company listed on the Toronto Stock Exchange. Ms. Balboa is a Chartered Professional Accountant / Chartered Accountant and holds a Bachelor of Commerce (Honours) from Queen’s University.
Wayne Cockburn – proposed President
Mr. Cockburn has over 25 years of healthcare experience, including 20 years at the C-level, specializing in strategic planning, corporate finance and capital market strategies, corporate partnering, corporate governance and mergers and acquisitions. Mr. Cockburn has also served on the board of directors of U.S. and Canadian private and public companies for more than 20 years.
Kim Wei – proposed Chief Commercialization Officer
Mr. Wei has over 30 years of executive level leadership experience in healthcare. He has a track record for developing and delivering innovative allopathic and complementary medicine models in North America. Mr. Wei is a co-founder of TCNC and has helped grow Pathway to be a Canadian delivery system with corporate and joint-venture clinics, in multiple healthcare disciplines. Mr. Wei has acted as a director on multiple Canadian and international company boards.
Michael Steele – proposed Chairman and Director
Mr. Steele is an engineer and financier with over 30 years of experience in structured investments and new business start-ups. His company, Avonlea-Drewry Holdings Inc., provides consulting, restructuring, finance and operational advice. Mr. Steele has provided consulting services to various industry sectors including real estate, mining, oil and gas, and recently the Canadian medical marijuana sector.
Since 2013, Mr. Steele has consulted to or provided financing to various companies in the Canadian medical marijuana industry including Canadian Cannabis Corp, Cura-Can Health Corp., Maricann Group Inc., and The Hydropothecary Corporation. Mr. Steele was a previous director of Barkerville Gold Corp. Mr. Steele graduated from the University of Waterloo with a P.Eng (BASc) in civil engineering and received his MBA in 1981.
Alison Wright – proposed Director
Ms. Wright has over 20 years of experience in the construction and property management industries. Ms. Wright was a director of Capform Inc., a full-service concrete contractor based in Dallas, Texas, with projects throughout the southern United States. Currently, Ms. Wright is the President of Alwright Investments Inc., a Canadian property management and investment company she founded in 2012. Ms. Wright has served as a director on several boards of private companies in both Canada and the United States. Ms. Wright graduated from the University of Toronto in 1991 and holds a Bachelor of Science.
Kenneth Howling – proposed Director
Mr. Howling has over 25 years of healthcare industry experience in senior financial positions; including 11 years with Bausch Health (formerly Biovail Corporation), as Chief Financial Officer, and Senior Vice President, Finance and Corporate Affairs; five years as Chief Financial Officer of Acerus Pharmaceuticals Corporation; and five years as Chief Financial Officer with Pharma Patch PLC. During his career, Mr. Howling has contributed to the success of multiple start-up companies, taken companies through the IPO process, and has collectively raised over US$2.3 billion in various forms of capital.
Earlier in his career, Mr. Howling worked in senior financial management positions at Roberts Company Canada Limited, including roles of General Manager, Corporate Secretary and Controller, at GlaxoSmithKline (formerly Beecham Pharmaceuticals Ltd), and as an auditor with PricewaterhouseCoopers. Mr. Howling is a graduate of the ICD/Rotman Director Program and formerly a Certified Public Accountant (inactive license).
Renee John – proposed Vice President, Clinic Operations
Ms. John has over 20 years of experience in the healthcare industry in a variety of capacities and increasingly senior roles, including sales, business development, and operations. Prior to joining Pathway, Ms. John was Vice President of Operations for Agility Health. For over a decade, she previously served as Director, Western CDA Sales and Operations at Shoppers Home Health Care, a division of Shoppers Drug Mart, where she was responsible for a diverse six-figure portfolio. Ms. John holds an Executive MBA from the Ivey School of Business – University of Western Ontario.
Pram Sandhu – proposed Vice President, Pharmacy Programs and Regulatory Affairs
Mr. Sandhu has over 20 years of experience in various facets of the healthcare sector. He is the former Vice President of Medical Operations and Business Optimization for National Access Cannabis Medical. Mr. Sandhu is also an active clinical pharmacist, who has a passion for developing innovative programs in regulated environments. In 2014, he was a recipient of the Trillium Health Partners Allied Health Professional Award. Mr. Sandhu holds a Professional Certificate in Cannabis Science and Medicine from the University of Vermont, Larner College of Medicine.
Sponsorship
Under the policies of the Exchange, the parties to the Transaction will be required to engage a sponsor for the Transaction unless an exemption or waiver from this requirement can be obtained. The Corporation expects that the Transaction will be exempt from the sponsorship requirement of the Exchange as a result of the Offering being undertaken in connection with the Transaction. There is no assurance that an exemption or waiver from this requirement can or will be obtained.
Trading Halt
The Colson Shares are currently suspended from trading for failing to complete a Qualifying Transaction within the required timeframe as prescribed by Exchange policies, and the trading of Colson Shares is expected to remain suspended pending completion of a Qualifying Transaction.
Additional Information
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with Transaction, any information released or received with respect to the Transaction 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.
Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in the polices of the TSX Venture Exchange) has in any way passed upon the merits of the Transaction and associated transactions and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.
For further information, please contact:
Colson Capital Corp.
Murray Moore, CFO, Corporate Secretary and Director
Telephone: (403) 471-4039
Pathway Health Corp.
Wayne Cockburn, President
Telephone: (905) 505-0770
Cautionary Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the proposal to complete the Transaction and associated transactions, including statements regarding the terms and conditions of the Transaction and the Offering, the business plans and objectives of Pathway and the Resulting Issuer, expectations for other economic, business and competitive factors and approval of regulatory bodies. The information about TCNC and Pathway contained in the press release has not been independently verified by the Corporation. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Transaction and the Offering; the Transaction, the Offering and associated transactions will differ from those that currently are contemplated; and that the Transaction, the Offering and associated transactions will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). The terms and conditions of the Transaction may change based on the Corporation’s due diligence (which will be limited as the Corporation intends to rely upon the due diligence conducted by the Agent in connection with the Offering) and the receipt of tax, corporate and securities law advice for Colson, Pathway, TCNC and its parent holding entity. The statements in this press release are made as of the date of this release.
The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Not for distribution in the U.S. or to U.S. newswire services.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73508
Fintech
Asian Financial Forum held next week as the region’s first major international financial assembly of 2025
The 18th Asian Financial Forum 2025 (AFF), co-organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), will be held at the Hong Kong Convention and Exhibition Centre (HKCEC) on 13 and 14 January (Monday and Tuesday). As the region’s first major international financial conference in 2025, the forum will examine the landscape for new business opportunities in various industries and regions in the coming year and promote global cooperation, and is expected to attract more than 3,600 finance and business heavyweights.
Themed “Powering the Next Growth Engine”, the AFF will bring together more than 100 global policymakers, business leaders, financial experts and investors, entrepreneurs, tech companies and economists to share their views on the shifting global economic landscape and financial ecosystem. These industry experts will dissect the risk management strategy, discover new business opportunities, and explore how Hong Kong can seek breakthroughs in a period of change.
First flagship financial event to showcase Hong Kong’s financial strengths
Launched in 2007, the AFF has become a flagship financial event for Hong Kong and the broader region, highlighting the city’s pivotal role as a globally renowned financial hub with a highly competitive economic and business environment. Amid a rapidly changing global macroeconomic landscape, and shifts in geopolitical dynamics and monetary policies, Hong Kong’s financial services sector continues to leverage its strengths across various domains, drawing on its world-class business infrastructure and robust regulatory regime to help drive cooperation and mutual success across Asia and around the world.
Christopher Hui, Secretary for Financial Services and the Treasury of the HKSAR Government, said: “Hong Kong’s financial market went through a lot of reforms and innovation last year. We have also launched a roadmap on sustainability disclosure in Hong Kong and issued a policy statement on responsible application of artificial intelligence in the financial market with a view to boosting green finance and sustainable financing. The upcoming Asian Financial Forum will gather the top-tier of the financial and various sectors from all around the world, the Mainland and in Hong Kong and hence is the perfect occasion for us to showcase to the world the new momentum and latest advantages of Hong Kong in the financial realm. Participants will also have a chance to learn more about how Hong Kong can partner with them to explore new collaborations and development areas while expanding their network here.”
Luanne Lim, Chairperson of the AFF Steering Committee and Chief Executive Officer, Hong Kong, of HSBC, said: “The global economy faces greater uncertainties in 2025 compared to 2024. However, robust growth in India and ASEAN nations, combined with increased policy support from Mainland China, is expected to keep Asia’s (ex-Japan) GDP growth at a strong 4.4%, well above the global average of 2.7%.” Against this backdrop, this year’s Asia Financial Forum is aptly themed “Powering the Next Growth Engine” and will focus on high-potential markets such as ASEAN, the Middle East (particularly the Gulf Cooperation Council countries), and the role that Hong Kong can play. Ms Lim said Hong Kong’s unique role as a bridge between the mainland and international markets allows it to support mainland enterprises expanding globally. She added that Hong Kong is committed to attracting global talent and investors, driving growth for both mainland and international businesses.
Patrick Lau, HKTDC Deputy Executive Director, said: “As we move into the new year, different economies around the world are facing challenges in maintaining economic growth. As an international financial centre, Hong Kong is playing an important role both as a ‘super-connector’ and a ‘super value-adder’ to link the world, enabling investors and fundraisers to leverage the city’s professional services and investment platforms to facilitate collaboration and create business opportunities. This year’s forum not only brings together heavyweight speakers and thought leaders but also builds on the success of previous years to provide a business platform for international participants, promoting financial and business cooperation and working together to launch new engines for growth.”
Exploring new trends as the world’s economic centre of gravity continues its shift east
Reflecting on a trend where the world’s economic centre of gravity continues to take an eastward shift, Christopher Hui will host two plenary sessions on emerging prospects in the region on the first day of the forum (13 January). The morning session of Plenary Session I will feature H.E. Adylbek Kasymaliev, Prime Minister of Kyrgyzstan, finance ministers from countries such as Pakistan and Luxembourg, and Yoshiki Takeuchi, Deputy Secretary-General of the Organisation for Economic Co-operation and Development (OECD), who together will explore the financial policy outlook for 2025. In the afternoon, Plenary Session II will bring together leaders from multilateral organisations to share their views on the role of multilateral cooperation in regional economic development. Speakers will include Roberta Casali, Vice-President, Finance and Risk Management, Asian Development Bank; Jin Liqun, President and Chair of the Asian Infrastructure Investment Bank (AIIB); and Satvinder Singh, Deputy Secretary-General for ASEAN Economic Community, Association of Southeast Asian Nations (ASEAN). Moreover, a new session, the Gulf Cooperation Council Chapter, will bring together HE Jasem Mohamed AlBudaiwi, Secretary General of the Gulf Cooperation Council (GCC), speakers from the Middle East and local experts to discuss prospects in fostering financial cooperation and investment between the member states of the GCC and Hong Kong.
Also on the first day, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, will host the Policy Dialogue session with speakers including European representatives such as Philip Lane, Chief Economist and Member of the Executive Board of the European Central Bank, and Dr Olli Rehn, Governor of the Bank of Finland. The discussion will explore the opportunities and challenges arising from the global shift towards more accommodative monetary policies and national authorities’ strategic deployment of measures to revitalise their economies and accelerate growth through innovation.
The panel discussion on China Opportunities returns this year with senior figures invited to analyse investment prospects under China’s commitment to technological innovation and its impact on global business. The panellists included Li Yimei, Chief Executive Officer of China Asset Management; and Ken Wong, Executive Vice President of Lenovo and President of Lenovo Solutions & Services Group.
Top economist and leading AI expert take the stage at keynote luncheons
Another highlight of this year’s AFF will be the two keynote luncheons featuring thematic speeches by two distinguished guests: Prof Justin Lin Yifu, Chief Economist and Senior Vice President of the World Bank (2008-2012), and Prof Stuart Russell, Co-chair of the World Economic Forum Council on AI. These two prominent figures will dissect the evolution of the global economic landscape amid changing international dynamics, and examine how artificial intelligence (AI) is emerging as a new driving force for rapid global economic growth respectively.
Exploring hot topics in the financial and economic sectors
The afternoon panel discussion, Global Economic Outlook, will feature a special address from Liu Haoling, Vice Chairman, President and Chief Investment Officer, China Investment Corporation. The panel will analyse international economic trends and provide insights into business opportunities and wealth accumulation in emerging industries and regions in 2025.
Other sessions titled Global Spectrum, Dialogues for Tomorrow and Thematic Workshop will feature in-depth discussions focusing on the latest industry trends, including AI, Web 3.0, sustainability, philanthropy and family offices. As AI becomes increasingly widespread and diversified in its societal applications, the second day of the forum will introduce a special session, Dialogue with Kai-Fu Lee, in which Dr Kai-Fu Lee, Chairman of Sinovation Ventures, will discuss the transformative power of AI and its impact on technological advancements in the global business ecosystem.
Exploring the impact of sustainable disclosure on investment strategies
Sustainable finance and environmental, social and governance (ESG) considerations have become an irreversible global trend. In 2025, Hong Kong is set to fully align its regulatory framework with the sustainability disclosure standard of the International Sustainability Standards Board (ISSB). Sue Lloyd, Vice Chair of the ISSB, will join other experts in discussing how adopting international financial sustainability disclosure standards can strengthen market confidence in Hong Kong’s capital markets, address post-COP29 implementation in Asia, and share strategies for sustainable investing across three separate sessions. In addition, the Breakfast Panel on the second day will focus on the flows of transition finance in shaping a sustainable future in the Greater Bay Area and beyond. Furthermore, the HKTDC has partnered with EY to conduct a joint market survey on sustainable development, aiming to explore the views and practices of Asian businesses and investors on topics such as sustainability reporting, sustainable finance and preparations for dealing with climate change. The results of the survey will be unveiled on the first day of the forum.
Expanding cross-border opportunities through the HK global investment platform
As a key element of this year’s forum, AFF Deal-making offers one-on-one matching services for project owners and investors. More than 270 investors and 560 projects are expected to participate, with investment opportunities across industries such as environmental, energy, clean technology, food and agriculture tech, healthcare tech, fintech and deep technology. The exhibition sections of the AFF – Fintech Showcase, InnoVenture Salon, FintechHK Startup Salon and Global Investment Zone – will attract more than 130 local and global exhibitors, international financial institutions, technology companies, start-ups, investment promotion agencies and sponsors, including Knowledge Partner EY, HSBC, Bank of China (Hong Kong), Standard Chartered Bank, UBS, Prudential, China International Capital Corporation (CICC), Huatai International and more. Notably, the InnoVenture Salon will provide a platform for more than 100 start-ups to showcase innovative technologies in a variety of fields such as finance, regulation, sustainability, health and agriculture, supported by more than 110 Investment Mentors and Community Partners.
IFW 2025 creates synergies with AFF to boost mega event economy
International Financial Week (IFW) 2025 runs from 13 to 17 January with the AFF as its highlight event. This year’s IFW will feature more than 20 partner events, covering a wide range of global financial and business topics, including private equity, family offices, net-zero investing and generative AI. As the region’s first major financial event of the year, the AFF attracts top global enterprises and leaders to Hong Kong, creating connections between capital and opportunities. The forum assists industry professionals in seizing opportunities in the new year and helps promote the mega event economy in Hong Kong.
This year, the AFF has collaborated with various organisations to provide special travel, dining and shopping discounts and privileges for overseas participants joining the event. Activities include Peak Tram and Sky Terrace trips, the iconic Aqua Luna red-sail junk boat, and guided tours of Man Mo Temple and Tai Kwun arranged by the Hong Kong Tourism Board. Participants can also enjoy dining discounts and guided tours from the Lan Kwai Fong Group, as well as the Winter Wonderland at the Hong Kong Jockey Club’s Happy Wednesday at Happy Valley Racecourse, all designed to immerse overseas visitors in the vibrancy and diversity of Hong Kong.
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As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
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Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
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