SafeCharge extends acquiring agreement with Nayax

(Sharecast News) - Payments technology company SafeCharge announced on Monday that, in light of the success of its partnership with cashless payment solutions provider Nayax, they have agreed to extend the acquiring agreement between Nayax and SafeCharge to the end of 2024.The AIM-traded firm said that in conjunction with the extension, and under the terms of the agreement, it agreed with Nayax's founding shareholders that they would, by the end of 2022, buyback SafeCharge's shareholding in Nayax for a consideration equal to its cumulative investment of $24.5m plus 9% interest per year, calculated from 15 February 2018 until payment is received.In December 2016, the group made an initial $6m investment in Nayax.That was in exchange for approximately 4% of Nayax's issued share capital.At 31 December 2017, that initial investment was valued at $8.6m, including an unrealised gain of $2.6m that was recognised in other comprehensive income in the 2017 financial year.In February 2018, the company invested a further $18.5m in Nayax, taking the total investment by SafeCharge to $24.5m, representing around 11% of the issued share capital of Nayax.At 31 December, that cumulative investment was valued at $27.1m. "The investments in Nayax by SafeCharge included the grant of a put and call option between the parties to the investment such that Yair Nechmad, Amir Nechmad and David Ben Avi, together the Nayax founding shareholders, granted SafeCharge a put option to sell its interest in Nayax and the Nayax founding shareholders were granted a call option to purchase SafeCharge's interest in Nayax, each exercisable from 15 Feb 2020 up to 36 months post," the SafeCharge board explained in its statement."The purchase price of the put option would be at a value equal to the investment amount plus 9% interest per year, and the purchase price of the call option would be at a value of twice the investment amount."The option period to the agreement was varied on 17 January to enable SafeCharge to exercise the put option thereof."