Cuentas, Inc.'s CEO Delivers a Thorough Update, Shedding Light on the Latest Developments and the Company Dynamic Pivoting to Multibillion Real Estate, Fintech and Cybersecurity Global Markets. Discusses the Upcoming Shareholder Meeting and Future Target Acquisitions.
MIAMI BEACH, FL, Nov. 30, 2023 (GLOBE NEWSWIRE) -- Cuentas, Inc. (Nasdaq: CUEN & CUENW) (“CUEN” or “the Company”), the foremost developer of fully integrated cybersecurity, telecommunications, and financial applications for the unbanked and underbanked Hispanic market, Cuentas, Inc.'s CEO, Mr. Arik Maimon, delivers a thorough update in a shareholder letter, shedding light on the latest developments surrounding CUEN's imminent acquisition of WHEN, showcasing the revolutionary application of modular construction technology, outlining ongoing and prospective real estate ventures, and unveiling plans for an upcoming shareholder meeting.
Dear Valued Shareholders,
I am thrilled to personally connect with you and provide a comprehensive update on the exceptional progress and milestones achieved by Cuentas, Inc. throughout this transformative year. The dedication and tireless efforts of our team have propelled Cuentas toward a trajectory of growth, profitability, and increased shareholder value.
While navigating global challenges, our organization embraced adversity as an opportunity to thrive. Our commitment translated into innovative strides across diverse sectors, including Telecommunications, Fintech, Real Estate Investments, and Construction Technology. Noteworthy achievements were made in each sector, and we boldly ventured into new technologies such as Cybersecurity, strategically applied in the consumer, financial, and telecommunications sectors.
I am delighted to share the exciting news that Cuentas, Inc. has strategically positioned itself in the rapidly growing cybersecurity market. Through a letter of intent, we are poised to embark on one of the top ten M&A deals of 2023 with the imminent acquisition of WHEN Group. This strategic move solidifies CUEN's active participation in a $215 billion global security market. The management teams of both companies are committed to a seamless integration, reflecting our shared vision for success.
Recently, the imminent closing of the WHEN acquisition was acknowledged by CSO, a leading security technology news site, as a significant milestone, signaling a new and exciting chapter for Cuentas, Inc. We are diligently working towards completing the transaction, pending Nasdaq and shareholder approval, and meeting specified conditions. Upon completion, WHEN Group will become a majority-owned subsidiary of Cuentas. We firmly believe that this strategic move will result in immediate shareholder value, with our negotiations establishing a financial dynamic that positions CUEN at a $10 per share value and WHEN Group's market capitalization at an impressive $150 million.
In the realm of Mobile Telecommunications, I am spearheading our expansion through a strategic partnership with a reputable retail network. This pivotal move aligns with our strategic plan by introducing 5,000 SIM cards in the initial order. Anticipating a $4 million in annual revenue, we plan to leverage cross-selling opportunities by offering mobile top-ups, gift cards, and transit cards.
Our focus extends to new markets, particularly the dynamic Hispanic diaspora. The introduction of "Cuentas 360" integrates advanced security features, a crucial element in our acquisition of WHEN Group, reinforcing our tech infrastructure and ensuring a secure user experience for our expanding customer base.
We are excited to announce an exclusive commercial and technology partnership that includes mobile gaming and tokenized rewards functionalities in an updated version of our fintech 'Cuentas' mobile application. The U.S. mobile games market is projected to reach $18 billion in revenue in 2023, with a user penetration rate of 46.7%.
Additionally, Cuentas has achieved a significant milestone in real estate with its successful entry and partnership with RENCO. Our Lakewood Village project, featuring 96 units and advanced construction tech, has gained media acclaim for its eco-friendly practices, versatility, efficiency, and cost-effectiveness.
Our commitment to sustainable, resilient, and efficient construction is further exemplified by our investment in a 26-acre Tampa property for a collaborative 360-unit project, where we hold a 63% equity stake. These ventures showcase Cuentas' dedication to reshaping essential service sectors and everyday life.
Our end-of-quarter results bring fantastic news about Cuentas' progress, with sales skyrocketing to an impressive $1 million, marking an extraordinary quarter-over-quarter increase of 861%, and a remarkable growth in Cash and accounts receivable, reaching an outstanding 200% compared to the third quarter of 2022.
This substantial revenue increase is attributed to the success of our joint ventures and divisions, including Cuentas-SDI distribution of mobile top-up and digital content, Tel-3 retail digital portal, and our wholesale telecommunications. These efforts have been strategically aligned in preparation for our upcoming Cuentas Mobile products, featuring international capabilities via our Cuentas FinTech proprietary intellectual property core platform.
We have filed a preliminary Form 14A Proxy Statement describing the proposals on which our Board of Directors recommends our stockholders vote at our proposed 2023 Annual Meeting of Shareholders, expected to be held on Wednesday, December 20, 2023, at 10:00 AM Eastern time, subject to SEC review and approval. We will confirm the date and time through press releases, emails, and mailed material, including relevant materials for our shareholders.
Your trust and support are integral to our success, and we are confident that these strategic initiatives will significantly contribute to the prosperity of Cuentas, Inc. I eagerly anticipate sharing more positive updates as we continue this exciting journey together.
Cuentas remains steadfast in delivering strategic technology solutions, revolutionizing essential service sectors, and reshaping the way people interact with the spaces that shape everyday life.
Chairman and CEO
Cuentas, Inc. (Nasdaq: CUEN & CUENW) is creating an alternative financial ecosystem for the growing global population who do not have access to traditional financial alternatives. The Company’s proprietary technologies help to integrate FinTech (Financial Technology), e-finance and e-commerce services into solutions that deliver next generation digital financial services to the unbanked, under-banked and underserved populations nationally in the USA. The Cuentas Platform integrates Cuentas Mobile, the Company’s Telecommunications solution, with its core financial services offerings to help entire communities enter the modern financial marketplace. Cuentas has launched its General Purpose Reloadable (GPR) Card, which includes a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content. In Q1 of 2023 Cuentas launched Cuentas Casa, an alternative housing development initiative that secured a 10-year supply agreement for a patented, sustainable building system that will provide the bridge between its technology solutions and the affordable housing market. Cuentas has made investments to date in affordable housing projects for over 450 apartments. LINK: https://cuentas.com AND https://cuentasmobile.com
This news release contains "forward-looking statements," as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. These forward-looking statements involve substantial uncertainties and risks and are based upon our current expectations, estimates and projections and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, but not limited to, Nasdaq and shareholder approval of the proposed transaction, our ability to manage our research and development programs that are based on novel technologies, our ability to successfully integrate WHEN operations and product offerings, the sufficiency of working capital to realize our business plans and our ability to raise additional capital, market acceptance, the going concern qualification in our financial statements, our ability to retain key employees, our competitors developing better or cheaper alternatives to our products, risks relating to legal proceedings against us and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.