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RocketFuel transfers its payments assets in related-party deal

The transaction offloads RocketFuel’s $1.0 million executive deferred compensation claims to RPay and leaves RocketFuel with a 160,000-share warrant, with final financial impact still unclear.

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RocketFuel Blockchain transferred substantially all assets used in its payments business to RPay in a related-party transaction, with the deal closing Aug. 13 and disclosed in an Aug. 21 regulatory filing, CryptoSlate reports.

The payments assets included intellectual property, contracts, merchant relationships, and other items tied to the business, along with cash and accounts receivable attributable to that segment.

RPay assumed $800,000 in deferred compensation RocketFuel owed Peter M. Jensen and $200,000 owed to Bennett J. Yankowitz, both of whom are connected to RocketFuel through directorship, executive roles, or an advisory board position, and RocketFuel was released from both obligations at closing.

RocketFuel also received a warrant to purchase 160,000 RPay common shares, with a $1 million repurchase right exercisable by RPay, and the filing did not describe RocketFuel receiving shares or $1 million in cash at closing. RocketFuel said the board approved the deal using a fairness memorandum addressing conflicts, rather than an independent valuation or stockholder ratification, and the filing notes the full financial effect remains unresolved.

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