iCreate is currently in the process of working on a bold move to convert its current debt to equity with an overall transaction value worth $600 million. This ambitious move at the moment clearly pushes the boundaries from a regulatory standpoint.
One of the main reasons is that iCreate is currently being listed on the junior market and companies within the junior market have an upper limit of $ 500 million in valuation.
If this passes, iCreate would be breaching current regulatory standards, despite that the Ministry of Finance is currently overlooking the proposal to ensure that the company is walking that fine line. On the macro level, this is a move that will allow iCreate to raise more capital from the market and invest in strategic initiatives.
The terms for the debt conversion are $1 per share, the number of new shares issued then will be worth over $600 million, and the overall shares under the company would be approximately $750 million when we also take into consideration the current $130 million in shares the company has listed.
Analysts are estimating that one of the main reasons for such a move is the finalization of the acquisition of Visual Vibe which has been in the works for most of the year. This new stream of cash under the belt will allow it to not just acquire Visual Vibe but expand the business and get recurring revenues from it.
