iCreate is poised to take full ownership of GetPAID, offering 92,876,667 shares at $0.60 each to current shareholders. This move, pending approval, will transition GetPAID into a wholly-owned subsidiary of iCreate. Wilson, a minority shareholder in GetPAID, noted that iCreate initially secured a 51% stake in GetPAID for $25.5 million in 2022 through convertible preference shares with a 6% interest rate.
It’s a long time coming. It reflects where we [are] going as a company. We’ve long said we are transforming into a digital creative group of companies and GetPAID forms a critical part of that strategy,
Tyrone Wilson
Additionally, there’s a proposal to rename the company from iCreate Limited to iCreate Group Limited. With the integration of GetPAID and Visual Vibe, a group structure is a natural progression. Since its inception in 2018, iCreate has grown to encompass the iCreate Institute, GetPAID, and Visual Vibe under the iCreate Group umbrella. Wilson hinted at another acquisition this year, though details remain under wraps due to ongoing negotiations.
Focusing on GetPAID, Wilson revealed the company’s plans to expand further into the e-commerce sector. Discussions with an international payments firm could enhance GetPAID’s market presence, offering new opportunities in the e-commerce space.
“We’re negotiating a partnership that will significantly strengthen our position,” Wilson said, although he withheld specifics, promising more information in the coming weeks. He indicated that the partnership would enable GetPAID to provide payment services to small businesses, including barbershops, salons, and craft vendors. The Bank of Jamaica’s digital currency and card payments are being considered to facilitate transactions, with Apple Pay as a potential model for GetPAID’s system.
Wilson highlighted the Bank of Jamaica’s efforts to integrate the unbanked into the formal financial system, noting that sustaining their participation remains a challenge. “We aim to serve this underserved market extensively,” he stated, mentioning an existing partnership with First Atlantic Commerce to process payments for businesses and individuals.
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Debt Reduction Proposal
The proposal to issue new shares for the GetPAID acquisition is not the only matter for iCreate shareholders at the upcoming AGM on August 15 at the AC Hotel Kingston. Shareholders will also vote on issuing an additional 27,255,000 shares worth $16.4 million to settle fees owed to directors and management, and 23,990,714 shares valued at $14.4 million to compensate individuals and companies that have provided services to iCreate. In total, iCreate seeks approval to issue 144,092,381 new shares, valued at $86.5 million at $0.60 per share.
If approved, this will increase iCreate’s issued share count from 949,685,242 to 1,093,777,623 shares, resulting in a 13.17% dilution for existing shareholders. Wilson acknowledged the dilution but emphasized its necessity for strengthening the balance sheet and supporting future growth, ultimately benefiting shareholders in the long term.
Wilson elaborated on the debt acquisition, citing costs associated with acquiring Visual Vibe and transforming iCreate. “The Visual Vibe deal required significant resources, impacting our ability to invest in iCreate Institute and other operations,” he explained. However, he pointed out that the balance sheet now shows positive equity, thanks to reduced payables.
Overall, the $30.8 million payments for fees and services will cut iCreate’s trade and other payables by 32% from its December 2023 level of $97.3 million. The company also has $29 million in long-term loans due this year, partly related to the initial 51% stake acquisition in GetPAID.
In the first quarter of the current financial year, iCreate repaid a Sagicor Investments Jamaica bond and converted short-term debt into non-controlling interests in Visual Vibe. The debt conversion was finalized with the sale of a 10% interest in Visual Vibe for $57.98 million on February 21, 2024, reducing iCreate’s stake to 60%.ackling them.
