Summary
- REFFIND Limited has obtained approval from the ASX to bid for the assets of Loyyal as part of a consortium that intends to run the operations of Loyyal under a rebuilt entity.
- Barclay Pearce will raise funds for the Consortium to operate the Loyyal business, subject to a successful bid by the Consortium.
- A team of highly experienced professionals has been assembled by the Consortium to execute Loyyal’s go-to-market strategy.
- Presently, the Chapter 7 Bankruptcy process is ongoing and is expected to complete in the near term.
SaaS solutions company REFFIND Limited (ASX:RFN) has been looking to iron out the wrinkles concerning Loyyal as many issues had remained unresolved, including the status of the US Bankruptcy of Loyyal and the opportunity to bid for the assets of Loyyal as part of a consortium.
Previously, on 28 July 2020, RFN updated that it intends to bid for the assets of Loyyal in conjunction with the Consortium, as Loyyal had filed for bankruptcy protection. RFN had also shared its intention to run the operations of Loyyal subject to funding, and steer Loyyal on the path to an IPO at a suitable time after trading conditions improved.
Previous Update: REFFIND Envisions Substantial Value Addition for Investors through Strategy to Bid for Loyyal Assets
RFN Granted ASX Approval To Bid For Loyyal’s Assets
In the latest release, RFN updated to have secured ASX nod to bid for 25% of the assets of Loyyal as part of the Consortium (sophisticated investors).
Notably, the Consortium is presently the preferred bidder for Loyyal and all its related assets, including patents, as verified by the US Bankruptcy Trustee.
RFN further stated that it will not be a part of the capital raising, and the Consortium believes that North America would be a suitable market for Loyyal to pursue an IPO. Moreover, given the global nature of the business and its potential target client base, North America shall allow Loyyal to achieve maximum valuation.
The potential target client base that North America offers includes Loyyal’s clients such as Emirates and other airlines, financial services providers, hotel chains as well as retailers (offline as well as online retailers such as Amazon).
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Moreover, if the Consortium’s bid for Loyyal turns out to be successful, then there are chances that Barclay Pearce shall raise funds for the Consortium to operate the reconstructed Loyyal business of USD1 million on a valuation of USD20 million.
The present Chapter 7 Bankruptcy process in the US is nearing completion, and RFN awaits these results.
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Team Of Experts To Chart Out Loyyal’s Go-To-Market Strategy
Earlier in January 2020, RFN took part in a Loyyal SAFE instrument conducted at an equivalent valuation capitalisation for the company of USD29 million. RFN as well as the Consortium strongly believe that in a post-COVID-19 scenario, there lies a substantial latent value in the assets of Loyyal’s operations.
Moreover, an expertly placed team has been assembled by the Consortium in anticipation of a successful outcome in the bidding process to execute Loyyal’s go-to-market strategy with the right mix of leadership expertise and market experience. The team of experts is proficiently placed to assist with the Loyyal business.
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The team of experts includes following members:
Philip Shelper (CEO, Loyalty & Reward Co)
- Significant experience in the loyalty industry, involving positions at Vodafone and Qantas Frequent Flyer
- CEO and Founder of leading loyalty consulting agency, Loyalty & Reward Co, and an expert on the use of blockchain within loyalty programs
Matt Hamilton (Director of Strategic Partnerships, Loyyal)
- 15 years of experience in executive and board roles leading operations, strategy, finance and client relationships
- Proven track record for delivering and commercialisation of large-scale projects. Also led the GCC/Asia office since 2016 for Loyyal
- Took the Emirates relationship from proof-of-concept through to the signing of a commercial agreement
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Gareth Walsh (Global Director of Customer Success, Loyyal)
- Experienced product manager and leader with 15 years of experience topping innovative solutions for Ericsson and LinkedIn
- Designed as well as managed several custom implementations of the Loyyal APIs
- Pivotal in managing the Emirates relationship from a technical perspective
Steve Partridge (Director of Technology, Loyyal)
- Software engineer with recognised leadership and product management capabilities, holding around 20 years of professional experience
- Built the Loyyal platform from a proof of concept to the strong, enterprise-grade implementation available to customers as of v3.0
Mr Philip Shelper conducted the due diligence on the Loyal bid, and several ex-employees of Loyyal have been retained to assist the process. Moreover, the retained team shall also help with the operations of Loyyal once the bid turns out to be successful.
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Moreover, a strategy devised by the Consortium provides the way in which Loyyal should be operated on the way forward.
RFN looks forward to adding significant value, subject to successful execution of this strategy.
On 06 November 2020, RFN share price quoted at $0.002, up by 25% intraday.
