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Digiliti Money Rejects Lifeline from Urban FT
[August 29, 2017]

Digiliti Money Rejects Lifeline from Urban FT


Urban FT, Inc., the industry leading SaaS (News - Alert)-based digital banking platform, confirms that its negotiations with the troubled NASDAQ-listed Digiliti Money Group, Inc. (NASDAQ:DGLT) abruptly came to an end late last night when DGLT formally rejected the lifeline being offered by Urban FT.

Following Urban FT's initial offer to the Board of DGLT on August 15 and subsequent to initial due diligence revealing DGLT's actual financial position, Urban FT submitted a new offer which, if accepted by DGLT, would have been binding on Urban FT. The binding term sheet and the accompanying loan instruments delivered by Urban FT valued DGLT at $10,500,000 on a net equity basis. The offer provided that Urban FT would deliver DGLT and its subsidiary with an immediate line of credit that would enable DGLT to meet all current and ongoing working capital requirements, including its upcoming payroll obligations due at the end of the month. It would also have seen all customer services maintained without service interruption, all remaining employees retained and all creditors receiving 100 cents in the dollar.

For reasons not clear to Urban FT, DGLT, via its advisors at Lake Street Capital Makets, proposed alternate terms and stood firm on those terms, which Urban FT and its attorney considered unreasonable and unacceptable under the circumstances. The Board of DGLT said DGLT was not willing to negotiate its position and, in an email, noted that "we are too far off at this point" for a deal to be concluded in the timeframe DGLT is working toward.



Kasey Kaplan, Urban FT president, said "The Digiliti business is fundamentally good one, with good staff, good technology and good clients." He added: "We will leave our offer on the table for acceptance by Digiliti until close of business on August 31. We ensured that our offer took into consideration all SEC (News - Alert) and NASDAQ requirements for a transaction like this, and I hope the Digiliti Board concludes that our offer is the most fair, equitable and reasonable option for the various stakeholder groups, whom they-as directors-are meant to adequately and diligently represent as part of their fiduciary duty.

"Placing Digiliti into bankruptcy, if that's what the Board is considering," continued Kaplan, "would be a great loss to all of those stakeholders and would truly disrupt so many organizations that rely on Digiliti's services every day."


Urban FT is a SaaS-based digital payments platform that enables any brand to seamlessly launch a branded Mastercard or Visa card, lifestyle mobile app and Web solution to complement its core business. We give brands a complete platform to enhance every element of the customer/brand relationship, leveraging what they're doing today by adding a financial services framework, built on our unique understanding of driving the customer journey. Our platform enables brands--including 75 financial institution clients in addition to nonbank clients, representing leading national brands in telecommunications, insurance and travel--to uniquely engage their customers, adding value by deepening and expanding how and when customers interact with the brand.


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