Blockchain Startup Ripple To Invest Up To $50M USD In MoneyGrambr>
The partnership will see Ripple become MoneyGram’s key partner for cross-border settlement using its XRP token. As part of the agreement, Ripple has made an initial investment of $30 million in MoneyGram equity, made up of common stock and a warrant to purchase common stock. Ripple purchased the newly-issued common stock – including the shares underlying the warrant – from MoneyGram at $4.10 per share, which represents a significant premium to MoneyGram’s current market price. In addition, Ripple could further make an additional investment of up to $20 million at a minimum price of $4.10 per share within the next two years.
MoneyGram, which serves over 200 countries and territories, said that the partnership with Ripple will allow them to to settle key currencies and match the timing of funding with its settlement requirements, reducing operating costs, working capital needs and improving earnings and free cash flow.
“Through our partnership with Ripple, we will also have the opportunity to further enhance our operations and streamline our global liquidity management,” said Alex Holmes, MoneyGram Chairman and CEO. “Since our initial partnership announced in January 2018, we have gotten to know Ripple and are looking forward to further leveraging the strengths of both of our businesses.”
Brad Garlinghouse, CEO of Ripple, said that the partnership is a huge milestone in helping to transform cross-border payments.
“MoneyGram is one of the largest money transfer companies in the world and the partnership will continue to further the reach of Ripple’s network,” Garlinghouse said. “I look forward to a long-term, very strategic partnership between our companies.”