Ann: Spenda Executes Sale Agreement for Invoice Finance Portfolio, page-15

Couldn’t agree with this more and good to see Spenda has taken this view in its restructuring plans. I am happy to move away from direct lending so we can focus on the core software and payments services while somewhat strengthening the balance sheets.This way, we remove credit risk but still maintain some ongoing revenue stream throught his referrals process. OPEX reduction of $600k per year will definitely help the margins although this does mean that we will be foregoing the direct lending revenue of $50k GP per month, not to mention the break fee Spenda is paying to the tune of $170k. From what I understand, there are some deferred payment arrangements meaning that it may take some time for $2M to hit our back accounts? Correct me if I’m wrong.

With these last few announcements, you can see Spenda slowly starting to mature as a business and become more strategic with their focus. Obviously with this announcement will come a transition period. Wonder how the employees are feeling about all the change and what the culture is like inside Spenda…