AcquisitionsJun 4, 2026, 08:32 AM
Netcapital proposes $5M acquisition of Resmac assets for mortgage unit
AI Summary
Netcapital Inc. announced it has entered into a non-binding Letter of Intent with RezyFi, Inc. for the proposed acquisition of substantially all assets and assumed liabilities of Resmac, Inc. by a newly formed subsidiary, SD Holdco. The $5.0 million acquisition, payable in SD Holdco preferred stock, aims to establish a new financial services subsidiary focused on residential mortgage origination and servicing. This move is expected to add new revenue streams and leverage Netcapital's existing infrastructure, with a potential spinout of SD Holdco to Netcapital shareholders.
Key Highlights
- Netcapital entered a non-binding LOI to acquire substantially all assets and assumed liabilities of Resmac, Inc. via new subsidiary SD Holdco.
- Total acquisition value is $5.0 million, payable in 2.5 million shares of SD Holdco Series A Convertible Preferred Stock.
- RezyFi may receive up to 1.0 million additional SD Holdco preferred shares if Resmac achieves $10.0 million cumulative GAAP revenue within 24 months.
- RezyFi may receive up to 500,000 additional SD Holdco preferred shares if SD Holdco completes a public offering raising at least $10.0 million.
- The transaction aims to establish a new financial services subsidiary focused on residential mortgage origination and servicing.
- Netcapital contemplates distributing its interest in SD Holdco to Netcapital shareholders as a dividend spinout.
Price Impact
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