Megalith Financial Acquisition Corp. (MFAC), ahead of their May 26th shareholder vote to extend their deadline, announced this morning that they have signed a non-binding Letter of Intent to acquire a digital banking platform that, “is among the fastest growing in the country with several million accounts.“
Furthermore, the press release also says that the target company, “features an advanced, purpose-built platform via proprietary technology that provides a full suite of low-cost banking products including checking, savings, and credit cards to millennials and middle-income consumers.“
We don’t yet know the name of the company, and keep in mind that this is still a non-binding LOI, but on the face of it, this transaction sounds interesting. Megalith will be looking to extend their deadline to August 28, 2020, and previously had not included a contribution to trust in the proxy for non-redeeming shareholders. That’s generally a sign of confidence from the team that they believe this will be a well received transaction and are expecting the share price to trade above cash in trust value. The trick is in making sure investors feel the same way about it and that’s hard to do with limited information.
Unfortunately, MFAC can’t fully announce ahead of their vote with a signed definitive agreement, but we’ll know soon enough if this teaser was enough to wet investors’ appetites.