Currency Mountain Holdings has become the owner of a larger holding company that is setting its sights on controlling multiple brands in the retail foreign exchange space, the owner of the company Emil Assentato has confirmed to Finance Magnates.
Emil Assentato said that he controls at least 80 per cent of the shares of Currency Mountain Holdings and that the company controls over 80 per cent of the shares of Nukkleus.
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The firm Nukkleus has the right to use the Forexware brand name and as of last week, IronFX Australia. Mr Assentato was recently appointed as the CEO, president, secretary and treasurer as well as chairman of the board of directors of the OTC Markets listed company Nukkleus.
the assets of Nukkleus include Forexware
One of the first actions of the firm’s management was to acquire 100 per cent interest in the entity that controls the Australian operations of IronFX. The entity, previously reported to be owned by IronFX Global, was separated at the beginning of this year and the name of the Australian Securities and Investments Commission (ASIC) regulated firm was changed to BVI registered GVS Limited.
With the assets of Nukkleus including Forexware, the company is aiming to use multiple brands, its own technology and execution.
With the acquisition of GVS Limited, Nukkleus acquires the Australian brands of IronFX, including IronFX Australia and FXGiants. The deal also includes a 9.9 per cent stake in IronFX Global which was purchased from a BVI corporation called IBIH Limited, quantified with the purchase of 2,200 shares.
An initial investment of $1 million was made into Nukkleus. An initial payment of $175,000 was paid on May 27th, 2016. The remaining cash portion of the deal is expected to be transferred on June 7th, 2016.
Initially there are over 190 million shares outstanding of Nukkleus.
While the listed value of the shares of Nukkleus on the OTC Market is currently $1 per share, the real value of the shares is not known, since the company has been dormant and its stock has not been trading.
Nukkleus will include two major global brands
Emil Assentato explained to Finance Magnates: “Our step today in acquiring IronFX Australia is just a first step towards our long term strategy of identifying leading brands around the world inside Nukkleus. I wish to emphasize that our method of operations will be for each brand to maintain its own autonomy and separate operating identity.
What we are contemplating is that Nukkleus will operate in parallel several global leading brands. The first step for the company is the acquisition of IronFX Australia.
The companies will share resources, with a multitude of brands, making Nukkleus a multi-branded public firm, that is focused on technology in FX space and the execution of client orders via the brokers.
We are always concerned and cautious and we will make sure to do our diligence right, Nukkleus has always adhered to highest standards of execution and we don't expect the new operations to be any different.”
Every operating entity and brand entity under the ownership structure under Nukkleus will remain as it is, with more efficient use of resources and regulatory requirements.
The acquisition of the Australian entity of IronFX, GVS Holdings is subject to a notification about the change of ownership of the firm which has to be submitted to ASIC.
Second round of the deal
According to a regulatory filing with the U.S. Securities and Exchange Commission, Nukkleus has agreed to acquire the remaining 20,000 outstanding shares of capital stock of IBIH, which owns the remaining business of IronFX for 219,844,000 shares of common stock in an all shares deal.
This part of the agreement is subject to approvals from the U.K. Financial Conduct Authority and the Cyprus Securities and Exchange Commission (CySEC ). The announcement details that after the acquisition of the parent company of the IronFX brands, Nukkleus will be required to inject $1,000,000 into the firm for operations.
Prior to the second part of the deal, Nukkleus is required to enter an option agreement with FXDD Malta Limited and FXDD Trading Limited stating that the company may acquire 100 per cent of both companies. It's expected that in order to complete the transactions Nukkleus is going to issue additional shares. The deal is subject to a regulatory approval.
In the event that the second part of the deal is not completed before November 28th, 2016, the $1,000,000 paid to the parent company of IronFX, IBIH, as part of the first phase of the deal, will be returned to Nukkleus. IBIH will also assign the 24,156,000 shares of common stock of Nukkleus back to the company, while Nukkleus will transfer all equity held by Nukkleus in IronFX Australia back to the parent company of IronFX, effectively reversing the acquisition.
Following the second closing, the board of Nukkleus shall consist of six members which include Emil Assentato, Craig Marshak, who is the investment banker advising the parties on the deal, Markos Kashiouris, Peter Economides, Stathis Christophi and an additional representative who is to be appointed by Currency Mountain Holdings LLC.
