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Credit Intelligence (ASX:CI1) - Chairman, Jimmie Wong
Chairman, Jimmie Wong
Source: StockPal
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  • Credit Intelligence (CI1) has executed a share purchase agreement to acquire a 60 per cent interest in Chapter Two Holdings
  • Chapter Two Holdings is a Sydney-based business that provides debt solutions and mortgage broking services to people who are experiencing financial difficulties
  • For the transaction, $400,000 will be paid in cash on completion which is scheduled for July 1
  • A total of $320,000 Credit Intelligence shares will then be issued over a three year period, however, this is based on Chapter Two Holdings achieving a profit of $300,000 per year
  • The company is now looking for other acquisition opportunities in both Australia and Asia
  • Credit Intelligence is steady on the market today and shares are trading for 2.9 cents each

Credit Intelligence (CI1) has executed a share purchase agreement to acquire a 60 per cent interest in Chapter Two Holdings.

Chapter Two Holdings is a Sydney-based business that provides debt solutions and mortgage broking services to people who are experiencing financial difficulties.

“This transaction marks Credit Intelligence’s first step in building a comprehensive debt management business in Australia,” Chairman Jimmie Wong commented.

“Having reviewed a number of potential Australian acquisitions over the last two years, we are excited to be partnering with and investing in Chapter Two Holdings to unlock its significant growth potential, and continuing our Asia-Pacific expansion strategy,” he said.

For the transaction, $400,000 will be paid in cash on completion, which is scheduled for July 1 and is subject to due diligence and regulatory approvals.

A total of $320,000 Credit Intelligence shares will then be issued over a three year period, however, this is based on Chapter Two Holdings achieving a profit of $300,000 per year.

Credit Intelligence is now looking for other acquisition opportunities in both Australia and Asia.

A combination of high debt levels in Australia and economic hardships caused by COVID-19 is expected to drive strong business growth for the company in the year ahead.

Credit Intelligence is steady on the market today and shares are trading for 2.9 cents each at 11:39 am AEST.

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