Prospective buyer Urban FT Inc. confirmed on Aug. 25 that it’s in “advanced negotiations” with Digitili Money (Nasdaq: DGLT) regarding a “potential transaction that will see DGLT stave off potential bankruptcy proceedings.”
The New York-based digital banking platform submitted an unsolicited offer to Digiliti Money’s board on Aug. 15. The next day stock prices jumped from $0.21 to $1.05 before the Nasdaq halted trading subject to a request for additional information.
Minneapolis-based Digiliti Money had previously announced that it would be delaying its second-quarter earnings report while it investigated information from its accounting firm that it may need to restate previously reported financial results.
The mobile app technology firm, which was facing declining revenues, had been contemplating its way forward with interim CEO Bryan Meier, when Urban FT’s offer came. “Discussions between the two parties are continuing, in good faith, without either party at this stage committing to or being committed to any transaction of any nature,” Urban FT said.
Urban FT expects to present a final and binding proposal that accommodates the anticipated requirements of Digiliti Money and its board on or before Aug. 29, 2017.
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