Minneapolis developer of mobile wallet products has acquired two companies.
Cachet Financial Solutions of Minneapolis has filed an initial registration statement with the Securities and Exchange Commission looking to raise about $20 million through a public stock offering.
The company is developing mobile wallet solutions for customers of banks, credit unions, prepaid card programs, check cashing services and payday lenders. The company uses remote data capture technology that allows customers to scan checks with cameras on their smartphones or other devices and then transmit the scanned image to a bank or other financial institution for posting and clearing using Cachet’s cloud-based “Software-as-a-Service’’ platform.
Cachet was founded in 2010 and in February acquired a public shell company, DE Acquisition 2 Inc., through a reverse merger. In March Cachet Financial Solutions Inc., acquired the assets of a Texas company that developed technology platforms supporting mobile wallet applications .
For the three months ended March 31 the company had revenue of $476,482 and a net loss of $2.9 million. For the full-year ended Dec. 31. the company had revenue of $1.2 million up from $373,231 in 2012.
Cachet is headed by Jeff Mack, a former chairman, president and CEO of several public companies, including Wireless Ronin Technologies and Arcadia Financial (aka Olympic Financial).
Because of its small size and status as a former shell company and emerging growth company, Cachet will qualify under the Jumpstart our Business Startups Act of 2012, or the JOBS Act, and may take advantage of certain reduced reporting requirements.
The number of shares to be offered and an offering share price have not yet been proposed.
Patrick Kennedy • 612-673-7926