VANCOUVER, British Columbia, March 01, 2018 (GLOBE NEWSWIRE) -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE:BLK) (FRANKFURT:2AD) is pleased to announce it has entered into a non-binding letter of intent ("LOI") with Port Mercantile Capital Limited (“Port Mercantile”), a private Hong Kong corporation, to acquire SimpleBlock Payment Systems (“SimpleBlock”), an existing mobile banking and payment software platform.
Under the terms of the LOI, BLOK Tech will acquire a 100% interest in the SimpleBlock software and source code. SimpleBlock is a Fintech software platform (the “Software”) that, together with its associated source code IP, provides proprietary mobile banking services and financial payment and collection solutions.
SimpleBlock has been in development since 2014, with over $10,000,000 USD invested in the technology to date. SimpleBlock has been deployed and is operational in financial institutions in Asia. The platform enables consumers and businesses to make payments, execute money transfers and conduct e-commerce transactions via mobile phone or the internet, without a bank account.
SimpleBlock was developed as a secure and reliable technology for the large number of un-banked and under-banked citizens, predominantly in developing countries, who need a convenient, cost-effective payment solution.
The LOI is to be superseded by a formal definitive asset purchase agreement (the "Transaction Agreement"). The transaction will be subject to requisite regulatory approvals including the approval of the Canadian Securities Exchange (the “CSE”) and other conditions. BLOK Tech will be conducting due diligence including an independent asset valuation and technical evaluation of the Software.
Transaction Details
- BLOK Tech will issue Port Mercantile 6,000,000 shares of common stock of BLOK Tech, which may be subject to escrow requirements pursuant to CSE policy, plus $215,000 USD payable as follows;
- Payment of a $15,000.00 USD deposit on or before the 10th day of March, 2018; and
- Payment of a $100,000 USD progress payment within 15 days of verification and delivery of the IP (the “Source Code”) ownership; and
- Payment of $100,000 USD upon the execution of the Transaction Agreement; and
- Upon execution of these terms, BLOK Tech will own an exclusive license for the deployment of SimpleBlock in the African marketplace; and
- BLOK Tech will further own an option to acquire global rights (minus the licensing rights to the Philippines) for $1,000,000 USD to be exercised within 18 months of the execution of the Definitive Asset Purchase Agreement; and
- The initial strategy is to deploy the SimpleBlock platform in the African marketplace, and Port Mercantile would be eligible for an additional 1,000,000 bonus common shares of BLOK Tech upon execution of an LOI with an African Financial Institution (“Africa Bank”) with more than twenty (20) full branches within the first 90 days after closing of the Transaction Agreement.
“We are very pleased with the potential of adding SimpleBlock to our blockchain-enabled product suite,” said BLOK Tech CEO Robert Dawson. “Banking and payment processing are key areas of focus for us, and we have strategically targeted these sectors for investment and product development. The SimpleBlock platform is feature-rich and with the addition of blockchain technology, we believe it will be an efficient and effective technology solution for the un-banked to transact with businesses and fellow consumers.”
“I am delighted that we have found a solid and visionary partner in BLOK Tech to move our banking technology solution forward,” said Port Mercantile Chairman and CEO Eric Schjelderup. “We have invested in the development and application of our technology platform and it is ready for blockchain integration and market deployment. Together with BLOK Tech we will commercialize our Fintech solution to serve the needs of consumer and industries in our target markets.”
About Port Mercantile Capital
Port Mercantile Capital Limited is a private company incorporated under the laws of Hong Kong specializing in business development and growth, including strategy, structuring, financings, regulatory requirements, and acquiring and developing intellectual property. Port Mercantile also has presence internationally including in the United Kingdom, Europe, Africa and Asia.
About BLOK Technologies Inc.
BLOK Technologies Inc. is a public company that invests in and develops emerging companies in the blockchain technology sector. The Company’s approach is to provide capital, technology and management expertise to the companies it develops. With core technology being developed for the leading cannabis supply chain integrity network, BLOK Tech continues to grow its business into adjacent industries and emerging technologies. The Company systematically identifies early-stage technologies with potential to disrupt and innovate within their industry and invests the necessary resources to ensure the success of their projects.
For further information, please contact:
James Hyland, B.Comm.
Vice President Corporate Development, Director
(604) 442-2425
jamie@bloktechinc.com
ON BEHALF OF THE BOARD OF DIRECTORS
“Robert Dawson”
President & CEO
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.