Raytelligence AB (Nordic SME: RAYTEL) has made a significant move in the wireless telecom market by securing a substantial financing arrangement. Innowearable AB, a subsidiary of Raytelligence, signed a letter of intent with Mobintel and Emeriti Investment Bank for a seven-year financing arrangement worth $50 million. This agreement includes up to $38 million in revolving credit and $12 million in equity, which translates to a 40% stake in the new entity. As the company meets its business plan targets, this ownership stake will reduce to 20%.

The funds raised through this arrangement will be directed towards expanding operations in the Latin American market, a region with immense growth potential for wireless telecom services. Mobintel, known for its innovative mobile technology distribution and services, will play a pivotal role in this expansion. With operations spanning 14 countries across three regions, Mobintel aims to disrupt the traditional distribution model by offering technology-enabled services that enhance brand and customer performance.

Innowearable AB had previously announced its intent to acquire the assets of Tekmovil LLC on June 17, 2024. The letter of intent remains valid until August 30, 2024, with the final agreement expected by October 22, 2024. This timeline allows for negotiations to extend the letter of intent and potentially introduce new terms for the reverse acquisition.

Raytelligence AB is committed to leveraging its management team's extensive experience and operational capabilities to identify and complete strategic business combinations. The company's focus spans various sectors, including biotechnology, automotive, financial services, communication technology, food technology, cutting-edge technologies, and media sectors across Europe, America, and Asia. However, Raytelligence remains open to exploring acquisition opportunities in any industry.

For investors, this financing arrangement signifies Raytelligence's strategic intent to capitalize on the growth opportunities in the Latin American wireless telecom market. The involvement of a reputable investment bank like Emeriti and a leading technology distributor like Mobintel adds credibility to this venture. With the potential for significant returns as the company meets its business objectives, investors may find this an attractive opportunity to consider.

Raytelligence AB is listed on NGM Nordic SME, and its mentor is Black River Corporate Finance AB. For more information, interested parties can contact Ben Hedenberg at ben@bigben.se or Erik Forsell at erik@brcf.se.