MX Gold Corp. has entered into a letter of intent to acquire all of the shares of Symple Internet Financial Ltd., an arm’s length private British Columbia cryptocurrency/blockchain mining company based in Manitoba.
The proposed acquisition is the company’s first foray outside the mineral exploration space and is intended to be a pilot project to determine whether further investment in the growing cryptocurrency industry is warranted. The company has had preliminary discussions about the proposed transaction with the TSX Venture Exchange (the Exchange) and anticipates that it will proceed as a Reviewable Transaction but not a Change of Business in accordance with Exchange policies.
Pursuant to the terms of the Agreement, the company has agreed to pay US$150 000 and issue 4.5 million shares to the shareholder of Symple in consideration for all of the shares thereof. The closing of the transaction is subject to customary conditions precedent, including approval by the Exchange and the entry into a consulting agreement with the principal shareholder and executive of Symple for a minimum term of 12 months for compensation of US$8000 per month. The Agreement contemplates that a definitive agreement will be entered into on or before 1 November, 2017 and closing will occur on or before 1 December, 2017.
Symple operates a cryptocurrency/blockchain mining operation in a 5000 ft2 leased facility in Manitoba with the possibility to expand in the future under current leases. Symple has been successfully operating in the cryptocurrency business for approximately 1 year. Dan Omeniuk, CEO of the Company stated: “The blockchain space is growing and has the power to change the way finances are conducted globally. We are excited to have the opportunity to work with Albert Buu, the founder of Symple, who has a vast knowledge in the blockchain space and his educational background in computer engineering.”
In other corporate news, the company confirms that it has received final Exchange approval for the US$4 million equity financing that closed on 9 September, 2017, as further disclosed in its news release of even date.
Read the article online at: https://www.globalminingreview.com/mining/17102017/mx-gold-to-acquire-symple/