A new month is upon us and Canadian FinTech company CryptoGlobal Corp. (TSXV:CPTO, Forum) is kicking off March with two significant announcements.
The Company has entered into an agreement to acquire Blockchain Dynamics Inc. for approximately $28 million (CAD). Subject to shareholder approval, it is expected to close by the end of the month. All outstanding common shares of Blockchain Dynamics will be exchanged for more than 20 million common shares of CryptoGlobal. The transaction has been completed at $1.40 per share.
CryptoGlobal CEO Rob Segal stated in a news release that Blockchain Dynamics is “at the forefront of crypto security, storage and trading,” adding that acquisition will allow CryptoGlobal to store and trade its own crypto holdings securely and provide custodial services for institutional investors, exchanges and token holders.
Image via CryptoGlobal Corp.
This acquisition is being accelerated by $15 million in funding from a strategic investor. The investor hasn’t been divulged but the funding will be drawn in portions of $5 million each. The first $5 million will be drawn once the deal is closed, which is expected in the first half of March 2018. Because of this funding, CryptoGlobal’s recently announced $10 million private placement has been cancelled.
CryptoGlobal specializes in custodial, proprietary trading, exchange, insights and content. The Company mines and offers hosting for a diverse portfolio of cryptocurrencies, from Bitcoin (BTC), DASH (DASH), Ether (ETH) and Litecoin (LTC).