According to an SEC filing, Ripple is selling approximately one-third of its MoneyGram shares.
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Ripple is selling about a third of its stake in remittance giant MoneyGram. All of this, according to a document released Friday by the US Securities and Exchange Commission (SEC).
It should be noted that this is his first sale of shares since he invested in MoneyGram in 2019.
According to the document, on November 25, Ripple Labs entered into an agreement with MoneyGram. Basically, under which it has the right to sell up to 4 million shares.
This option will expire on 31 March 2021. The date on which the maximum amount will have been sold. Or when other usual events affecting the issuer occur.
MoneyGram International Inc. is a US company. A world leader in payment and money transfer services. Indeed, it enables friends and family to send money safely and conveniently for everyday needs in over 200 countries and territories.
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Ripple sells its shares
As indicated in the SEC filing, Ripple owns approximately 6.23 million shares of common stock. And, it has the only voting and investment rights with respect to those shares.
Ripple also holds the warrants on 5.95 million common shares. This represents a total capital position of 12.2 million shares or 17% of MoneyGram’s outstanding shares.
In fact, after the sale, Ripple will own at least 3.22 million shares or 4.44% of MoneyGram.
According to a Ripple spokesperson: “This is a purely financial decision, to make some profit on Ripple’s investment in MoneyGram. And in no way does it reflect the current state of our partnership.
Very importantly, as stated by the spokesperson, Ripple confirmed that it will continue its cooperation with MoneyGram.
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Ripple and MoneyGram
Last June, Ripple acquired the shares of MoneyGram at a price of $4.10 per share. After the investment, Ripple owned 9.95% of the outstanding MoneyGram common shares.
MoneyGram CEO Alex Holmes said, “The partnership is transformational.
Ripple CEO Brad Garlinghouse added that his company would support MoneyGram’s “further expansion” into European and Australian payment brokers.
In November 2019, Ripple even completed the acquisition of its $50 million stake in the MoneyGram remittance platform.
In fact, MoneyGram’s intention was to use this capital inflow to support its operations. In particular, as it expands its use of Ripple’s On-Demand Liquidity product.
Clearly, as 2020 became unpredictable and MoneyGram noticed that its services were growing digitally, the value of its shares also skyrocketed.
Indisputably, its share price grew by 260% this year and closed at $7.42 on Wednesday. Therefore, Ripple is making a significant profit on its sale.
I leave with this quote from Warren Buffett: “Never be afraid to ask for too much when you sell. Or offer too little when you buy.