In-Depth: Nxt-ID Gets Much-Needed Financing, Clearing Way to Spin Off Its Payments Wearables Provisioning Unit Fit Pay

Apr 5 2019

NFC TIMES Exclusive Insight – U.S.-based Nxt-ID, whose Fit Pay unit provides payment card provisioning for Garmin Pay, has announced a closing date for a $16.5 million loan it will use for working capital and to refinance an existing loan.

The new loan also clears the way for the company to spin off its Fit Pay unit into a separate company, which it had originally planned to do last November. Nxt-ID announced last week that the closing for the new loan is now expected to happen late this month or in early April. It did not say when the spin-off would actually occur. 

When it does, Nxt-ID said it will call the new company PartX and will apply to trade PartX shares on Nasdaq. The new company will have at least $6 million for operations. Michael Orlando, who had headed the Fit Pay startup before Nxt-ID bought it in May of 2017, will be CEO of the new company. Existing Nxt-ID shareholders will be given shares in the new company. 

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