GlobalWealth Group PLC (GWG) has announced the conclusion and signing of an agreement under which Bank of Cyprus has become an investor and strategic partner in Wealthyhood, an associate company of the Group.
As noted in the Group's announcement to the Cyprus Stock Exchange (CSE), the participation of Bank of Cyprus in the share capital of Wealthyhood will be effected through a total investment of €6,000,000 for its participation in this completed capital increase round. The price per share for the said capital increase amounts to €87.1.
Following the execution of all corporate actions of Wealthyhood, GWG is expected to hold 25.31% of the issued share capital, and Bank of Cyprus 26.45%, the announcement said.
"It is noted that GWG’s investment in Wealthyhood is expected to be recorded at Fair Value Through Profit or Loss (FVTPL); therefore, the new valuation from this funding round is expected to have a positive impact on the Company’s Net Asset Value (NAV). Any accounting reflection or potential impact on the Net Asset Value (NAV) of GWG will be finalized upon completion of the transaction and is expected to be included in the Company’s upcoming periodic financial reports, in accordance with International Financial Reporting Standards (IFRS) and subject to the recommendations of the Company’s Auditors," the announcement continued.
It pointed out that the above, as well as the execution of the agreement, are subject to customary contractual conditions precedent, as well as non-objection and other approvals from the competent regulatory authorities.
"This capital increase further strengthens Wealthyhood's mission to democratise investments on a pan-European level, accelerating the development of Artificial Intelligence (AI) capabilities to offer even more personalized investment solutions and expand its footprint in the European market, following its successful track record in the United Kingdom and its recent dynamic entry into Greece," the announcement said.
"Concurrently, this strategic partnership with the Bank of Cyprus bolsters Wealthyhood's expansion into the B2B sector and highlights its fully vertically integrated, end-to-end wealthtech platform for banks and financial institutions seeking the digital transformation of their investment services," it concluded.
