TPT Global Tech Inc. (OTC:TPTW) Stock Gains Momentum: What’s the Buzz?
There were a number of companies that had come on the radar of investors for one reason or another on Wednesday, and investors are expected to look into many of those companies this morning. One of the companies that could be worth looking into at this point in time is TPT Global Tech Inc. (OTC:TPTW) in light of the announcement from the company yesterday.
The company, which is based out of San Diego, California, was in focus yesterday after it announced the signing of a key share purchase agreement. The company announced that it had been successful in completing the acquisition of a 60% ownership stake in the firm Tekmovil Holdings LLC. It was a major coup for TPT Global Tech considering that Tekmovil is the biggest distributor of smart phones in the Latin American market.
In the 12-month period that ended on June 30, 2023, Tekmovil managed to generate as much as $210 million in revenues. The company suffered an unaudited loss of $32 million, which had largely been a function of its debts. However, the debt burden would be restructured simultaneously with the transaction process. A major element of the deal would be the integration of the company’s VuMe Super App onto the mobile devices that Tekmovil would distribute.
The company noted that its technological prowess combined with the distribution network of Tekmovil would help in providing smart phone users in the 16 nations in the region with an unprecedented content experience. Additionally, Tekmovil would also get to access the backend dashboard of the VuMe Super App. That would allow it to get actionable insights into user statistics, performance metrics, and revenue streams in real-time.
TPT Global Tech would complete the acquisition for a sum of $40 million paid out in two installments. The first payment could either be paid in cash or in the form of Series E preferred shares in the company. A minimum of $10 million would need to be paid in cash by October 31, 2023, unless the data is extended by Tekmovil shareholders. The rest of the amount would be made into a promissory note with a maximum value of $30 million, which would be payable by March 31, 2024 at the latest.
TPT Global Tech had announced that it had entered into an acquisition agreement for the entirety of Broadband Infrastructure Inc. (BBI) on August 1. BBI is involved in building fiber optic infrastructure for government agencies as well as for telecom carriers. The acquisition price was $9 million, out of which $6 million was in the form of a promissory note and the rest was in the form of Series E Preferred Shares in TPT Global Tech. The promissory note could be paid by the company from the capital it would raise from a Reg A offering or a S1 registered offering at the time of its capital raise for listing on a major stock exchange in the United States.
