MICT, Inc. considers share repurchase program following Tingo merger close

As previously announced, MICT (MICT) is scheduled to complete the acquisition of the operating business and assets of Tingo Inc. (TMNA) by November 30, 2022, which will be achieved through the acquisition of 100% of Tingo’s sole operating subsidiary, Tingo Mobile Limited. In return, MICT is issuing 19.9% of its common stock to Tingo, together with Series A Preferred Stock and Series B Preferred Stock, each of which are convertible into shares of MICT’s common stock upon certain conditions being satisfied. Following the completion of the acquisition of Tingo Mobile, MICT is expected to have a cash position in excess of $300M as well as an annualized revenue run rate approaching $1.2B and a net income before tax run rate approaching $50M. As a consolidated entity, revenues and net income are expected to increase considerably further in 2023, and a substantial proportion of those earnings are anticipated to be generated in US Dollars. Darren Mercer, MICT’s Chief Executive Officer, commented, "The acquisition of Tingo Mobile will not only make MICT significantly profitable from Q4 2022 onwards, it also provides us with a robust balance sheet that allows us to implement several strategic initiatives, including a considerable stock buyback program, which we are considering at the current time. As stated previously, there is a substantial disconnect between our current share price and the true value of the Company. We therefore believe a sizeable share repurchase program will create a significant increase in value for our shareholders." On November 28, 2022, MICT filed a preliminary proxy statement for the annual meeting of stockholders, which will be held on December 30, 2022, at 8:00 a.m. Eastern Time. The formal meeting notice and proxy statement for the Annual Meeting can be found here. The Annual Meeting will be a completely virtual meeting of stockholders, which will be conducted via live webcast. MICT believes the closing of the merger with Tingo, Inc. will resolve the Nasdaq minimum bid price requirement. If however for some reason the minimum bid price is not otherwise achieved, MICT will consider alternative options to regain compliance, including a reverse stock split of the issued and outstanding shares of common stock, as referenced in the preliminary proxy statement. While a reverse stock split would not adversely impact the shareholdings of MICT’s stockholders, the Board of MICT does not intend to take such action except as a last resort.