Blockchain Industries, BTHMB sign binding LOI to merge and become publicly traded crypto exchange company
Wed, 23 Jan 2019, 05:45 am UTC
Blockchain Industries, an investment and advisory firm focused on distributed ledger technology and digital assets, has announced that it has signed a binding letter of intent (LOI) to merge with BTHMB, a Singapore-based company.
BTHMB is currently in the process of taking a new name – “Blockchain Exchange Alliance” or BXA. The merger deal with Blockchain Industries, which trades publicly on U.S. over-the-counter (OTC) markets under the ticker BCII, is expected to see a back door listing for the cryptocurrency exchange.
An anonymous source told CNBC that BXA was previously considering listing in Singapore. However, it did not want to wait for the time it takes to complete an initial public offering (IPO). According to the official release:
“The companies anticipate merging into a single entity, becoming a publicly traded cryptocurrency exchange company.”
“BTHMB/BXA has agreed to place $1M USD into an escrow account as consideration for entering into the LOI which is subject to diligence review by both parties mutual agreement on certain terms including, but not limited to, valuation and the entrance into definitive transaction documents.”
Sources also said that the combined company plans to “list up,” meaning that it would move from OTC markets to the New York Stock Exchange or Nasdaq.
Patrick Moynihan, CEO of Blockchain Industries, said that the initiative is expected to bring liquidity, accessibility and expansion to the blockchain industry.
“By merging with BTHMB/BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus,” he added.
The merger is expected to make way for a unified, more secure global exchange platform with a broad capability to support emerging blockchain e-commerce, payments, and other digital finance functions, the release said. BTHMB/BXA intends to use Blockchain Industries to market and expand their operations in North America.
"BTHMB/BXA is a global exchange alliance and the United States is a key factor to any global initiative," said Dr. Byung Gun Kim, CEO of BTHMB/BXA. "By unifying our businesses, we benefit from the focused expertise of Blockchain Industries. As a result, we have tremendous growth opportunity in this region, and we expect quality results from this merger."
Under the terms of the LOI, the companies aim to complete the merger by March 1, 2019.
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