Nxt-ID Intends To Spin Off Payments Division - Quick Facts

(RTTNews) - Nxt-ID Inc. (NXTD) said Friday that it intends to separate its payments, authentication and credential management business into an independent company and distribute shares of the newly created company to its shareholders through the execution of a spin-off, which the company believes will qualify as a tax free distribution.

Immediately following the transaction, expected to be completed by November 15, 2018, Nxt-ID shareholders who own common shares of Nxt-ID on the dividend date of October 15, 2018 will own shares of both companies.

The new company will include the payment, authentication and credential management assets of Nxt-ID and assets acquired in the May 2017 business combination with Fit Pay, Inc.

These include the FitPay Token Requester Platform, which enables cardholders to securely add their payment credentials to devices that are integrated with Fit Pay's token management solution.

Nxt-ID noted that following the spin-off, the new company has an investment commitment for $6.0 million to fund its operations and will apply for listing on Nasdaq.

Assets associated with Nxt-ID's healthcare subsidiary, LogicMark, LLC, will remain with Nxt-ID, along with the assets under 3D-ID, LLC. LogicMark produces a range of products within the personal emergency response system or PERS market.