BitGold Inc. (TSX-V:XAU), a platform for savings and payments in gold,
announces the completion of the previously announced Acquisition
Agreement with GoldMoney Network Limited (“GoldMoney”). BitGold has
acquired the intellectual property and operating subsidiaries of
GoldMoney in exchange for the issuance of 11,169,794 Common Shares in
the capital of BitGold.
GoldMoney will continue to operate without interruption, maintaining
premium client services, with the added pricing and execution benefits
and additional features of the BitGold technology to come. The BitGold
payment and savings platform will operate as a separate service focusing
on the expansion of a high-growth internet user base, while also
developing a global end-to-end payments and international transfer
network utilizing BitGold settlement technology. The combined entity
will also build services in additional market segments, creating a
global, full-reserve financial service network to grow market share in
payments, international transfers and remittance, in-app and micro
payments, and cross income-segment savings and wealth management.
BitGold is developing plans for an internal reorganization to be
announced late July in which its operating structure and staffing
mandates will be enhanced to further integrate GoldMoney and support the
expansion of the combined business. The first step will be a name change
of BitGold Inc. to GoldMoney Inc., subject to regulatory approval.
“We are pleased to complete the GoldMoney acquisition and further reveal
our plans to build a global, cross-segment financial service platform,”
said BitGold CEO, Roy Sebag. “By combining the unique attributes of gold
with the real time connectivity of the of the smartphone revolution,
we’re able to build a global network for savings and transactions that
substantially removes credit and settlement risk for both savers and
merchants.”
“Gold is a significant percentage of global base-money, owned in every
country & across every income segment, but with no modern ‘banking’ or
payment apps,” said BitGold co-founder Josh Crumb. “Many multi-billion
dollar markets are ripe for innovation & disruption in a new
technological age for money and real-time international transactions.
The GoldMoney team has made significant strides toward this vision over
the past 15 years, we’re excited to combine efforts and realize this
mission.”
James Turk, founder of GoldMoney.com added: “The BitGold team are
demonstrating market-leading skills in applying today’s cutting-edge
technology that is making possible an evolution in financial services.
We are pleased that the customers of GoldMoney will be able to benefit
from new products and services to be introduced in the months ahead.
Online commerce continues to grow as global interconnectivity expands,
creating the need for new payment alternatives and other gold-focused
financial services. The combination of BitGold and GoldMoney creates a
company with considerable resources that is well placed to take
advantage of these opportunities.”
Pursuant to the Acquisition Agreement BitGold granted to GoldMoney the
right to nominate three directors to its board of directors (the
"BitGold Board") until July 20, 2018. BitGold welcomes GoldMoney
director Mahendra Naik, who has been appointed to the BitGold Board. Mr.
Naik will be joined by two additional GoldMoney Directors, James Turk
and Hector Fleming, whom management will nominate for election to the
BitGold Board at a meeting of shareholders to be held in September 2015.
Further information about Messrs. Naik, Turk, and Fleming is available
in BitGold's news release of May 22, 2015.
The transaction is valued at $59.4 million based on the $5.32 closing
price of the Common Shares on the TSX Venture Exchange on July 20, 2015.
The Common Shares issued to GoldMoney are subject to a hold period
expiring November 21, 2015, and a 12-month lock-up period expiring July
21, 2016.
As a result of the sale of the GoldMoney business, GoldMoney Network
Limited was issued at total of 11,169,794 Common Shares. For the
purposes of National Instrument 62-103 early warning reporting, the
address of GoldMoney Network Limited is Falcon Cliff, Palace Road,
Douglas, Isle of Man 1M2 4LB. GoldMoney Network Limited did not exercise
control or direction over any securities of BitGold prior to the
acquisition. As a result of the acquisition, GoldMoney Network Limited
owns 11,169,794 Common Shares representing approximately 20.5% of the
54,492,898 issued and outstanding Common Shares. GoldMoney Network
Limited acquired the Common Shares for investment purposes, and has no
current intention to increase the beneficial ownership of, or control or
direction over, securities of BitGold.
BitGold also announces that further to its announcement of June 16,
2015, the TSX Venture Exchange has approved the issuance of 72,222
Common Shares to Dundee Securities Ltd. at a deemed issue price of $3.53
per Common Share, in settlement of an aggregate total obligation of
$254,942.66, which was incurred in respect of financial and corporate
advisory services and performance of sponsorship-level due diligence.
The Common Shares were issued on July 20, 2015, and are subject to a
hold period ending November 21, 2015.
About BitGold Inc. (to be GoldMoney Inc.)
BitGold Inc. (to be
GoldMoney Inc.) (TSX-V:XAU) is a global, full-reserve and gold-based
financial services business. GoldMoney provides financial services as a
trusted, limited third-party, combing the unique attributes of gold with
technology driven innovation. Through GoldMoney® the company offers
precious metals custody, trading and execution, wealth management and
research to individual investors and institutions. Through BitGold™ the
company operates a self-directed savings platform and payments network
allowing individuals and businesses to make or receive online, in-store
or mobile payments. GoldMoney Inc. has over 150,000 customers from over
200 countries and $1.5 Billion in client assets under administration.
GoldMoney is regulated by the Jersey Financial Services Commission
(JFSC) as a Money Services Business. The JFSC is the main supervisory
body that oversees and regulates Jersey's large financial services
industry. For more information on BitGold, visit bitgold.com.
For more information on GoldMoney, visit ir.goldmoney.com.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. Neither
the TSX-V nor its Regulation Services Provider (as that term is defined
in the policies of the TSX-V) accepts responsibility for the adequacy of
this release.
Forward-Looking Statements
This news release contains certain
“forward-looking information” within the meaning of applicable Canadian
securities laws that are based on expectations, estimates and
projections as at the date of this news release. Any statements that
involve discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions, future events or
performance (often but not always using phrases such as “expects”, or
“does not expect”, “is expected”, “anticipates” or “does not
anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”,
“believes” or “intends” or variations of such words and phrases or
stating that certain actions, events or results “may” or “could”,
“would”, “might” or “will” be taken to occur or be achieved) are not
statements of historical fact and may be forward looking information and
are intended to identify forward-looking information. This
forward-looking information is based on reasonable assumptions and
estimates of management of the Company at the time it was made, and
involves known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking information.
Such factors include, among others: risk factors relating to the
Company’s limited operating history; future capital needs and
uncertainty of additional financing; the competitive nature of the
industry; unproven markets for the Company’s product offering;
volatility of gold prices & public interest in gold investment; lack of
regulation and customer protection; the need for the Company to manage
its planned growth and expansion; the effects of product development and
need for continued technology change; protection of proprietary rights;
the effect of government regulation and compliance on the Company and
the industry; network security risks; the ability of the Company to
maintain properly working systems; foreign currency and gold trading
risks; use and storage of personal information and compliance with
privacy laws; use of the Company’s services for improper or illegal
purposes; global economic and financial market conditions; uninsurable
risks; and those risks set out in the Company’s public documents filed
on www.sedar.com. Although the
Company has attempted to identify important factors that could cause
actual results to differ materially, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as actual
results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance
on forward-looking information. The Company undertakes no obligation to
revise or update any forward-looking information other than as required
by law.
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