Investview, the online trading systems provider, has signed a definitive agreement to acquire Instilend, the securities lending technology provider via a share exchange agreement.
Instilend provides electronic securities lending tools via fully automated on-line technology to the institutional, high frequency and retail trading communities. Instilend platforms, Matador and LendEQs, aim to provide these firms with compliance and operational efficiency, while simultaneously enabling them to create new revenue streams.
Randy MacDonald, president and CFO of Investview, said: “Instilend’s software prompts CFOs, at introducing and clearing brokers, to examine new ways of maximizing the value of their inventories of stocks for additional client satisfaction and increased revenue streams. The software bolts onto existing systems to preserve existing revenues but extracts more economic rent by connecting clients to deeper pools of liquidity, automating work-flow for negotiating rates and documenting compliance, as well as turning static databases into dynamic tools.”
David Kelley, COO of Investview, also observed that “traditionally, stock loan departments were incentivized primarily on revenues from lending. This software allows tracking of all measures of benefit for the company for a more comprehensive view of success. For instance, we believe Instilend clients are achieving greater economic success by having more of their clients be able to locate stock for short selling as well as being able to offer more of their inventory for lending.”
The share exchange agreement, executed on Sept. 13, saw Investview agreeing to acquire 100% of the outstanding securities of Instilend in consideration for 500,000 shares of common stock of Investview and a Convertible Promissory Note in the principal amount of $500,000.
The parties intend to close the acquisition on or before October 30, 2012.
(JDC)