Cuentas Acquires Equity in Affordable Housing Project
News provided byACCESSWIRE
Feb 03, 2023, 8:26 AM ET
MIAMI BEACH, FL / ACCESSWIRE / February 3, 2023 / Cuentas, Inc. (NASDAQ:CUEN)(NASDAQ:CUENW) ("Cuentas"), a leading fintech provider of mobile financial app and payment solutions has signed a definitive agreement to acquire an equity position in the first sustainable rental housing project developed in the US using a patented MCFR Mineral Composite Fiber Reinforced Construction Technology that has been approved for hurricane-prone areas as such in Florida.
The $1.195M acquisition cost for the 6% equity stake will be satisfied by the issuance of approx 3.8M common shares, which is equivalent to 19.9% of the outstanding and issued shares of CUEN. The Lakewood Village project is an affordable multi-family real estate development located at 4280 Lakewood Rd in Lake Worth, Palm Beach County, Florida, consisting of 96 apartments that are 2 and 3 bedrooms. Cuentas' investment is guaranteed by the seller as a formal appraisal is pending completion.
Cuentas should be able to book almost $1.2M in equity assuming the property is appraised at $20M but could increase further if the property appraises higher.
"This acquisition should be a game changer for Cuentas as there is a severe shortage of affordable housing in many areas of the US, especially in Florida, and Cuentas is looking to provide solutions for our target demographic, namely unbanked, underbanked and underserviced residents of the US," stated Arik Maimon, Co-founder and CEO of Cuentas. "Sustainability and Affordability are two key elements in today's changing world. We are proud to be a part of this transformation and investing in such projects and companies that utilizes new technologies that have disruptive benefits. Case in point lowering the construction cost of hurricane-rated single and multi-family dwellings in Florida and other hurricane prone areas is a big deal", added Maimon.
"Cuentas will be looking to co-develop additional affordable housing projects under the CuentasCasa brand and be able to integrate its e-commerce and mobile payments infrastructure to further assist potential and actual residents of these projects", stated Co-founder and President, Michael De Prado. "Affordable rental projects will be more necessary as property values increase dramatically in many areas of Florida and working class employees are forced to leave due to skyrocketing rental rates", added De Prado.
Cuentas, Inc. (Nasdaq: CUEN & CUENW) is a fintech e-finance and e-commerce service provider with proprietary technology that delivers digital financial services to the underbanked and un-banked Hispanic, Latino and immigrant populations including mobile and financial services, prepaid debit card, ACH and mobile deposits, cash remittance, peer to peer money transferring, and other services. The Cuentas General Purpose Reloadable (GPR) Card includes a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content. For more information, visit https://cuentas.com.
This news release contains "forward-looking statements," as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as "believe," "plan," or "expect" or similar statements are forward-looking statements.
SOURCE: Cuentas, Inc.