Oscillate PLC has agreed to a reverse takeover of UK fintech platform Hi55 Ventures, which operates the Hi Group financial infrastructure platform created to help companies unlock cashflow from payroll by paying their employees more flexibly.
The proposed deal values Aquis-listed Oscillate shares at roughly £2.7mln or 1.29p per share, versus its last share price of 0.75p, and puts a value on Hi of £28mln, or 70p per share.
Subject to completion of the proposed reverse takeover, Oscillate said its shareholders will also receive a warrant for every share held in the enlarged group, exercisable at 1.29p per share for a 12-month period post-completion.
Hi allows employees “freedom of pay”, which is the ability to access their salary as they earn it and for free, delivered in partnership with MasterCard. In doing so, Hi can externally finance the entire payroll of companies. This improves cashflow, by unlocking a new source of working capital and helps attract and retain the best talent by increasing employee financial freedom, flexibility and wellbeing.
In recognition of the strength of the offering, Hi has been accepted onto both the Microsoft for Startups and the Mastercard Start Path accelerators, two highly prestigious and competitive programs with acceptance rates of around 2% each.
Hi was named in the top 100 Startups of 2022 by startups.co.uk, and has been granted B Corp Pending status.
Steve Winfield, Non-Executive Director of Oscillate commented: “We are pleased to announce this potential transformative acquisition. We believe we have secured a good deal for shareholders, at an attractive premium to our current share price and, through the warrant provision, an opportunity for Oscillate shareholders to benefit from further appreciation in value of the enlarged group.”
Shares in Oscillate have been suspended while completion of due diligence and regulatory approval is completed.