Listed firm CryptoBlox Technologies Inc. has announced its acquisition of Blockchain Fintech Unipessoal LDA, a Portuguese company specializing in blockchain-based financial technologies.
The announcement was part of the amended agreement that revises the initial acquisition terms disclosed on March 5, 2024, reflecting the latest developments in CryptoBlox’s strategic pursuit to expand its blockchain ecosystem.
Under the new agreement, CryptoBlox will acquire 100% of the outstanding shares of Blockchain Fintech, issuing 25 million common shares valued at $0.20 each, totaling an aggregate value of $5 million.
The completion of this transaction is contingent on several conditions, including customary closing requirements, due diligence, and the approval of the Canadian Securities Exchange.
Additionally, a finder’s fee will be payable upon closing, amounting to 1.75 million common shares.
The acquisition structure includes an earn-out arrangement that enables CryptoBlox to issue further shares upon achieving specific milestones in Blockchain Fintech’s development and product release.
As outlined, these milestones are tied to the development and commercial success of products based on Blockchain Fintech’s technology.
Initially, upon the completion of a non-custodial cryptocurrency wallet mobile application, CryptoBlox will issue an additional 10 million common shares.
Subsequent milestones will each trigger further issuances of 10 million shares, totaling up to 40 million additional shares issued at a price of $0.20 each.
These include reaching $500,000 in cumulative revenue from the application or any related products and the release of two additional products developed from Blockchain Fintech’s intellectual property, excluding the initial application.
The acquisition of Blockchain Fintech is a strategic move for CryptoBlox as it progresses toward implementing its Diversified Blockchain Ecosystem Strategy.
This strategy focuses on establishing a comprehensive blockchain infrastructure encompassing digital asset mining, technology, and blockchain-based financial services.
The integration of Blockchain Fintech’s technology is expected to enhance CryptoBlox’s offerings, positioning the company as a competitive player in the blockchain industry.
CryptoBlox is optimistic that this acquisition will drive shareholder value and complete a critical segment of its ecosystem strategy.
With the amended agreement in place, CryptoBlox anticipates strengthened capabilities in blockchain technology, particularly within the sectors of digital wallets and blockchain-enabled financial solutions, aligning with its broader vision of growth and innovation in blockchain infrastructure.
