Sweden listed P2P lending provider TrustBuddy continues its efforts to adapt to the new regulatory requirements (specifically TrustBuddy’s ongoing preparations for an upcoming licence application to engage in professional activities related to intermediation of consumer credit under new law (2014: 275)) and proposes to merge TrustBuddy International AB and TrustBuddy AB. TrustBuddy will, in the proposal, act as the acquiring company and absorb TrustBuddy International.
Implementation of the proposal is subject to TrustBuddy’s shares being approved for listing and trading by Nasdaq OMX First North, and shareholder approval of the merger plan at Extraordinary General Meetings of TrustBuddy and TrustBuddy International scheduled 17th November 2014. Informal contact with Nasdaq OMX First North regarding the listing of TrustBuddy shares has been positive.
In the preparation of the merger plan, the Board has produced a statement pursuant to Chapter 23. 10 § 2. Companies Act, contains additional information for the period January 1, 2014 to July 31 in 2014. The statement indicates that, amongst other things, revenue for the period amounted to SEK 67.6 million and earnings before depreciation, and EBITDA amounted to SEK -0.3 million. The July revenue performance demonstrated an acceleration from the second quarter revenue runrate.
The Boards of Directors further believe that the reverse merger will be beneficial to the TrustBuddy Group of companies, resulting in a more efficient corporate structure and to some extent reduced administrative costs.
TrustBuddy and TrustBuddy International’s respective Board of Directors and management believe that the merger will take place, at the earliest, in January 2015.
Under the new law (2014: 275) TrustBuddy’s licence application must be submitted before the year end of the year, thus allowing TrustBuddy to continue current operations.