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IPOs Digital Payment Solutions

Published on December 22nd, 2012 | by Ted Liu

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Digital Payment Solutions to go public, this time via IPO

After terminating a backdoor going public transaction, Digital Payment Solutions Inc. has filed a preliminary prospectus for an initial public offering (IPO) of common shares priced at $0.10 per share.

Ascendant Securities Inc. has been retained as agent for the best effort offering. Gardiner Roberts LLP and Norton Rose Canada LLP are acting as legal counsel to Digital Payment Solutions and agent respectively.

Digital Payment Solutions intends to apply to list its shares on the Canadian National Stock Exchange (CNSX).

Thornhill, Ontario based Digital Payment Solutions provides financial solutions with the co-ordinated delivery of “high margin, high demand financial products and services”. It operates through susidiaries, Paycheck Plus Inc.,MobiCash Solutions, Inc., Quantum Card Services Inc., and NovelPay Inc.

Its principal products include payday loans, money remittance, prepaid cards, and global Payment solutions.

Paycheck Plus, Quantum and MobiCash Solutions have each entered into an agreement with Money Plus Group Inc. to provide direct sales expertise. Money Plus Group is controlled by David Singh, the promoter and associate of the controlling shareholders of Digital Payment Solutions.

Singh’s wife and adult children are the controlling shareholders of Digital Payment Solutions, collectively owning 75.5 million common shares or 82.90% of current outstanding shares of Digital Payment Solutions. Elesha Singh and Loriana Valente are each controlling 33.16% of the outstanding shares.

Incorporated in February 2012, Digital Payment Solutions has raised approximately $1.56 million from private investors as part of $2.5 million tranched financing.

Digital Payment Solutions intends to use net proceeds from the offering to complete the steps necessary to expand its payday loan business and to begin earning revenue from its prepaid card and money remittance segments and for general working capital purposes.

On August 16, 2012, Digital Payment Solutions entered into a letter of intent with The Phoenician Fund Corporation I (TSX-V: PO.H), a capital pool company, for a proposed going public business combination as Phoenician Fund’s qualifying transaction (QT). Digital Payment Solutions terminated the proposed transaction on October 24, 2012.

Under the proposed QT, Singh’s family memers would own 60 million shares to be valued at $6 million while under the proposed IPO, the family members are owning 75.5 million valued at $7.55 million.

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About the Author

Ted is an editor of CanadianPrivateEquity.com and Research Director for CVCA - Canada's Venture Capital and Private Equity Association. Ted has been following Canadian venture capital and private equity industry since 1993.



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