SMC Entertainment to acquire 100% equity interest in Genesis Financial for $45M

SMC Entertainment Inc. entered into a letter of intent to acquire 100% equity interest in diversified financial services company Genesis Financial Inc. for $45 million.

Genesis operates its business primarily through two Australian regulated entities in wealth management, tax and accounting advisory services. For the nine months ended September, the Australian operations generated gross revenue of approximately $15.8 million and derived earnings before interest and taxes of approximately $1.0 million.

Under the terms of the letter of intent, SMC will acquire 100% of the issued and outstanding securities of Genesis for stock. Genesis shareholders will receive SMC's preferred stock convertible to common shares.

Upon closing of the deal, management will strategize an additional capitalization plan minimally of $15 million for immediate implementation. The new capital will be allocated for further expansion, acquisitions and working capital. Management will also explore the ability to seek a more senior public listing exchange along with a reflective name change into 2022, according to a news release.