RE:Just Wondering
Ractionale for Stock Split and Spinout:
Shidan Gouran, President of BLOC stated, "Global Blockchain reviewed its activities and identified that it was not achieving, in its view, sufficient "pure play" market value for its different and unique businesses, each housed within BLOC. Most notably and distinctly, these verticals are:
1) The investment in or incubation and creation of new blockchains, ICOs and tokens specifically in partnership with leading brands that have large captive user bases, and/or in collaboration with industry participants whose principal areas of business truly merit and benefit from decentralization and the blockchain; and
2) The mining of cryptocurrencies in order to provide investors with access to existing known and blue chip currencies such as Bitcoin and Ethereum through the deployment of hardware and associated infrastructure that can "mine" these coins by performing the function of verifying and validating transactions as trustworthy through the processing of difficult cryptographic problems that require tremendous amounts of computational power to solve. This achieves exposure at a fraction of the cost of ownership and speculative risk associated with retail purchase at current price levels.
Looking at the value of our Company versus the comparable listed universe, who for instance only act as miners, it became obvious that comparable companies on Canadian Exchanges on every metric including the below were being rewarded with much greater valuations:
1) MW of power available for operations in favourable jurisdictions; and
2) Total computing power for mining
The disparity in valuation, in the view of management, meant that either the value of our investment and incubation vertical was being ignored, or the value of our mining vertical was being ignored.
The Spinout is an effort to not only simplify our story for investors, but more critically to "unlock" this overlooked value, by splitting the Company into two publicly traded entities, each with its own major individual and important business focus.
The Stock Split is an effort to enhance future liquidity for both companies. In a sea of new listings of companies attempting to hijack the newfound popularity of Blockchain, capital must continue to flow to those companies with the strength, tools and ability to endure and to prosper.
With over $60 million raised to date, as well as the leadership of a world-class team of industry pioneers, the Company believes that it is and will continue to be an important first-mover, carrying out its business plans as further described below, each of which intent on creating significant, rapid and lasting value for shareholders and having a major impact on the emerging importance of blockchain and cryptocurrencies for governments, industries, businesses, and individuals globally.
We are a new company doing some very, very big things."