Nxt-ID biometric authentication and payments business spin-off delayed
The proposed spin-off of Nxt-ID’s assets, including its payment, authentication, and credential management business into an independent publicly traded company has been delayed, the company announced. Nxt-ID now plans to complete the spin-off in the first quarter of 2019.
The planned spin-off was originally announced in September, with Nxt-ID committing to invest $6 million in the new company, which will include the assets Nxt-ID acquired when it merged with Fit Pay. The plan is for the new company to apply for a listing on the NASDAQ exchange.
“The reason for the delay in completing the transaction is that, after much effort, we were unable to come to terms with our primary lender regarding the release of their security interest in assets that we are proposing to spin off,” said Gino Pereira, Chief Executive Officer of Nxt-ID. “We are currently working with a number of other lenders to replace the existing long-term facility to remove the security interest. We will announce a new record date when we have better clarity on the timing to complete the transaction and to receive various regulatory approvals. We are now targeting to conclude the spin-off before the end of the first quarter of 2019.”
Nxt-ID patented a method of utilizing data or algorithms across multiple devices for user recognition and authentication earlier this year, and has partnered with Discover and Garmin to leverage Fit Pay’s technology.