Ripple Sells Its Shares in Moneygram!
Blockchain payment firm Ripple sells roughly a third of its shares in money transfer company MoneyGram.
It is known that Ripple currently has 4 million MoneyGram shares for sale. And these shares correspond to approximately 33% of all shares in the company. The company also has a deadline until March 2021 to complete this sales process. Ripple will own 3.22 million shares, or 4.44% of the payment company, if the sale is realized. However, when included in the “warrant” (right to buy shares), Ripple will hold 11% of Moneygram.
According to Ripple’s initial investment terms announced in June 2019, the company purchased shares in MoneyGram at a substantial premium for $ 4.10 compared to their current prices. While MoneyGram’s shares rose more than 260% this year, closing at $ 7.42 on Wednesday, Ripple made a significant profit from its investment. Speaking on the subject, the Ripple spokesperson used the following statements:
“Ripple is a proud partner of MoneyGram’s digital growth transformation. This is Ripple’s logical financial decision to reap some gains from MGI [MoneyGram International] investment. In no way is it a reflection of the current state of our partnership. “
The spokesperson, who did not answer a question sent by e-mail asking what the company plans to do with the proceeds from the sale of shares, stated that the sales are still ongoing.
Ripple completed its $ 50 million purchase of stock in MoneyGram in November 2019.
At the end of the third quarter of 2020, Ripple was set at $ 9.3 million in MoneyGram’s latest financial statement as “market development fees” for the remittance firm to use Ripple’s XRP-based settlement network On-Demand Liquidity (ODL). had paid.
Since June 2019, MoneyGram has been using this cross-border solution to transact in Europe, Australia and the Philippines, where Ripple has paid at least $ 52 million to MoneyGram.