Canada’s HyperBlock to Buy CryptoGlobal Corp for C$106 MillionApril 18, 2018
HyperBlock Technologies Corp in Canada said that it has reached an agreement to acquire the CryptoGlobal Corp, a cryptocurrency mining firm, with estimated C$106 million stocks.
Most of the market participants said that the deal could be classified as one of the larger acquisitions in the industry of cryptocurrency. HyperBlock has struggled for continuous momentum because of sharp price gains last year. It has also received scrutiny by many government regulators across the globe.
Sean Walsh, Chief Executive Officer of HyperBlock, said that the company’s goal is to become a direct-to-consumer crypto service provider with the capacity to deliver products that reach all customer requirements. He also added that the deal would help the company able to make as well as manage crypto-asset investments in the long run.
Walsh also added that HyperBlock lately completed the purchase of the largest crypto mining or hosting facilities in North America. Because of that and the acquisition of CryptoGlobal, the service provider has been much closer to its goal to become one of the most diversified and the best crypto companies in the country.
Currently, CryptoGlobal gives an emphasis on mining bitcoin, litecoin, dash, as well as ether. Its services would really aid HyperBlock to be more relevant, reputable, and dependable crypto provider along the way.
The cryptocurrencies mining can be considered a process wherein a network of computers competes in order to address complicated algorithms. Those users who can put an end to some mathematical problems will be given new bitcoins as their rewards.
“The integration of the large-scale mining-as-a-service model of HyperBlock with the existing mining, crypto trading businesses and custodial storage of CryptoGlobal would create a strong or even stable foundation for organic growth and acquisition development,” Walsh Said.
Included in the purchase agreement, HyperBlock believed that the deal values the common shares of CryptoGlobal at 74 cents each. It represents a 48% premium to the price of the company’s stock.
HyperBlock also expects that the acquisition would add to the cash flow of the company in 2019. It has plans to issue over 60.4 million shares to all CryptoGlobal shareholders. The latter crypto provider will be able to own 25.2 % of the combined crypto company during the closing of the transaction.
Upon completion, HyperBlock will apply to be included in the list on the Canadian Securities Exchange. This provides a reliable list of services from a variety of companies throughout Canada. It delivers a modern alternative for businesses to access the public capital markets in the country. The enlistment is going to happen at the end of May 2018.
Walsh will remain as the Chief Executive Officer of the new company. He’ll work with CryptoGlobal talented and flexible co-founders James Millership and Rob Segal. Chris McGarrigle, the Blockchain Dynamics founder, will join Walsh to effectively lead the entire company. Furthermore, Segal will be a part of the effective, efficient, competitive, and productive board of directors of HyperBlock.