RE:14.01.2021 DeFi Holdings Inc. now 100% Routemaster
Routemaster inks definitive deal to buy rest of DeFi
2021-01-14 08:31 ET - News Release
Mr. Daniyal Baizak reports
ROUTEMASTER CAPITAL ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE REMAINING 51% INTEREST IN DEFI HOLDINGS INC., A COMPANY PURSUING INVESTMENTS IN THE DECENTRALIZED FINANCE MARKET
Routemaster Capital Inc. has entered into a definitive agreement dated as of Jan. 14, 2021, to acquire 51 per cent of the issued and outstanding common shares of DeFi Holdings Inc.
Under the terms set out in the Definitive Agreement, the Company shall issue 20 million common shares of Routemaster from treasury (the "Payment Shares") to the shareholders of DeFi Holdings in exchange for a 51% of the total issued and outstanding common shares DeFi Holdings (the "Purchased Shares") pro rata in proportion to their holdings of Purchased Shares. The completion of the transaction to acquire the Purchased Shares (the "Acquisition") is subject to customary closing conditions. No finder fees are payable in connection with, and no change of control of the Company will result from the Acquisition. The Acquisition is subject to regulatory approval and satisfaction of closing conditions. There can be no assurances that the Acquisition of the Purchase Shares will be completed as proposed, or at all.
Routemaster currently owns 49% of DeFi and following the Acquisition DeFi will become a wholly owned subsidiary of the Company.
DeFi Holdings is a company focused on investing, incubating and managing trading technologies associated with the fast-growing decentralised finance market. Decentralized finance could be considered the next wave of financial innovation on the blockchain. It refers to digital assets, financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum and other blockchains. In simpler terms, it is financial software built on the blockchain. Decentralized finance's core selling point is the removal of intermediaries in transactions which in traditional finance provide the "trust" layer (i.e. banks and brokers) in a transaction between two parties. With decentralized finance, users can access the network directly, so there is no need for intermediaries.
The goal of the investment is to give the Company's shareholders exposure to the emerging decentralized finance industry. DeFi Holdings has a mandate to secure equity holdings of leading companies, creating new companies in the space, and operating a trading desk for underlying exposure to crypto currencies.
The decentralized finance market represents a paradigm shift in traditional financial derivatives and has created new financial products around staking, yielding and decentralisation of permission-less financial infrastructure associated with digital assets.