Risk Management & Payment Processing specialist Vogogo Inc. ("Vogogo") (TSX VENTURE:VGO) today announced a formalized partnership with CBW Bank.
Via the partnership, Vogogo will be the marketer of the bank program in addition to providing sophisticated risk management services to all participants. The service will be offered to qualified US businesses and consumers, including certain businesses offering cryptocurrency-based services. For its part, CBW Bank will provide all the banking, stored value and payment processing services to the bank approved program participants.
Founded in Weir, KS in 1892, CBW Bank was acquired in 2009 by its current management team, which includes ex-Google, ex-Yahoo and Wall Street executives. Since then, it has led innovation within the US banking sector. CBW Bank has also pioneered real-time payments, a unique and game changing innovation within US banking.
Vogogo CEO Geoff Gordon said of the announcement, "CBW is a forward looking organization and we are excited to be working with them on the US bank program. In simple terms, via this partnership, Vogogo clients have effective access to the world's largest financial market. This program allows us to grow our business both with our crypto-focused clients and with traditional clients; it's very effective for any qualified business looking to gain reliable access to the US financial networks in a highly secure and compliant fashion."
In connection with the partnership, Vogogo has granted to CBW Bank's holding company CB Bancshares 625,000 share purchase warrants ("Warrants") of Vogogo. The Warrants will have a term of twenty-four (24) months from the date of issuance and will have an exercise price of $0.80. The warrant issuance is subject to acceptance by the TSX Venture Exchange and successful operation of the bank program by Vogogo in the US for four (4) consecutive months. The Warrants will have a hold period that will expire 4 months and one day from their date of issuance and will be subject to certain restrictions under applicable US securities laws.