Midpoint To Augment Consumer-Facing Platform With Blockchain Tech Company
LONDON, Dec. 15, 2021 (GLOBE NEWSWIRE) — Midpoint Holdings Ltd (TSXV: MPT) (Frankfurt: 8MH1) is pleased to announce that it has entered into a purchase agreement dated December 14, 2021, pursuant to which the Company proposes to acquire all of the issued and outstanding share capital of Blockchain World Ltd – a company focused on building innovative consumer-focused blockchain-based products. BWL owns premium domain names Blockchain.eu (Europe) and Blockchain.com.au (Australia) and will be launching new offerings in early 2022.
In consideration of the Transaction, Midpoint proposes to issue 10,000,000 common shares to the existing shareholders of BWL. The Consideration Shares will be subject to restrictions on resale until the date which is six (6) months from the closing date of the Transaction.
In addition to the Consideration Shares, the Vendors will also be entitled to receive the following additional common shares (the “Performance Shares”) subject to the satisfaction of the following performance milestones:
(a) 5,000,000 Performance Shares will be issuable to the Vendors upon the official launch of the website domain “blockchain.com.au” (or such earlier date as mutually agreed upon by the parties), in the event such official launch occurs within 9 months of the closing date of the Transaction;
(b) 5,000,000 Performance Shares will be issuable to the Vendors upon the official launch of the website domain “blockchain.eu” (or such earlier date as mutually agreed upon by the parties), in the event such official launch occurs within 9 months of the closing date of the Transaction;
(c) 5,000,000 Performance Shares will be issuable to the Vendors upon the achievement by BWL of CTV or AUM of no less than $20,000,000 within 24 months of the official launch; and
(d) 5,000,000 Performance Shares will be issuable to the Vendors upon the achievement by BWL of CTV or AUM of no less than $50,000,000 within 30 months of the occurrence of the official launch.
“CTV” means the cumulative gross transaction value of all digital currency transactions processed through website domains maintained by BWL, for a given period, calculated in $CAD.
“AUM” means the total amount of digital currency held by the custodial wallet of all customers of BWL, as calculated on the last business day of any particular month based on the average market price of the applicable currency during such day.
Compelling
BWL was founded by Domenic Carosa as a B2C blockchain-focused product organization. Domenic is a highly regarded entrepreneur and early adopter of blockchain technology. Notably, he is the Founder and Chairman of Banxa Holdings Inc. (TSXV: BNXA) and Cryptocurrency fund Apollo Capital. Through Domenic’s stewardship, Banxa has achieved significant transactional revenue growth alongside increased partnership roll-outs. Upon successful completion of the Transaction, Domenic Carosa will join the Midpoint board of directors and Derek Ivany will step down as a director to accommodate the appointment.
Commenting on the Transaction, Midpoint President Derek Ivany stated, “It has been one of our stated corporate goals to augment our consumer-facing business with applicable blockchain technology. As such, we believe that this Transaction represents a very compelling opportunity to take Midpoint into the digital asset space in order to assist in building shareholder value in 2022 and beyond. The addition of Domenic Carosa will further bolster Midpoint’s board with highly relevant blockchain and cryptocurrency experience that will be vital as the Company moves forward in this arena. Midpoint’s ability to tap into Domenic’s vast network within the digital asset sector will be of tremendous value as the Company assesses further product expansion and partnership opportunities.”
Domenic Carosa commented, “I’m looking forward to working with the Midpoint team in order to expand their presence in the blockchain space. I see significant opportunities to leverage their consumer-facing foreign exchange platform that has been the backbone of their business. One of my first priorities will be to help build the internal blockchain capabilities and then oversee the execution of the strategy.”
According to Markets and Markets, from 2020 – 2025 the global blockchain market size is expected to grow at a CAGR of 67.3%, reaching $39.7 billion by 2025. Further, according to Statista, the financial sector currently accounts for more than 60% of blockchain’s worldwide market value. In line with these potentially accelerating market trends, Midpoint believes there is an opportunity to capture synergies between its existing foreign exchange platform and the blockchain business of BWL. Midpoint’s core competency in the consumer-facing foreign exchange space lends itself to expansion via broadened scope and potential product offerings within the digital asset sector.