VANCOUVER, British Columbia, March 14, 2018 (GLOBE NEWSWIRE) -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE:BLK) (FRANKFURT:2AD) is pleased to announce it has signed a Memorandum of Understanding (“MOU”) with FogChain, Inc. (“FogChain”), outlining the details of the strategic relationship between the two companies for mutual growth and collaboration.
FogChain is a Silicon Valley, California technology company led by a highly-experienced Cloud and SaaS team designing a software tool kit for blockchain development and deployment.
The strategic relationship includes the following:
Co-Development
BLOK Tech will become a founding member of the FogChain customer advisory board and will have access to the FogChain development platform for testing. BLOK Tech’s previously announced $100,000 investment in FogChain will be used exclusively for technology co-development as mutually agreed to by the two companies. In addition, both parties will collaborate and provide advice to the other with respect to product development, giving both companies access to top-notch strategic, technology and go-to-market expertise.
Go-To-Market
FogChain will work with BLOK Tech to support the US distribution of BLOK Tech's blockchain platforms and software. This includes direct sales, introductions to and support with channel partners, such as Amazon Web Services, IBM BlueMix and Microsoft Azure. In addition, BLOK Tech will assist FogChain with the distribution of the FogChain platforms within the BLOK Tech group of companies; and as a reseller and/or channel partner. Under the terms of the MOU, BLOK Tech and FogChain will collaboratively support each other's marketing initiatives.
Mutual Investment
To solidify this strategic relationship, each company will take equity investments in the other. This mutual investment will be finalized through a Definitive Agreement (the “Definitive Agreement”). Under the terms of the MOU, BLOK Tech will receive $500,000 worth of stock in FogChain at a price of $0.54 per share, following the currently proposed FogChain business combination. This is in addition to the $100,000 investment BLOK Tech has made into FogChain through the previously announced FogChain private placement, bringing BLOK Tech’s total investment to $600,000. FogChain will be entitled to, but not required to, receive $500,000 of BLOK Tech’s common shares valued on the Closing Date of the Definitive Agreement.
Investment Deal Flow
FogChain, through its connections in the technology start-up community, will identify investment opportunities for BLOK Tech, with an emphasis on Silicon Valley. This provides BLOK Tech with a deal flow pipeline from one of the world’s most active start-up markets. BLOK Tech will also identify investment opportunities, tools and/or acquisitions for FogChain to consider that may be of strategic or accretive benefit to FogChain.
“The strategic relationship we are forming between BLOK Tech and FogChain has tremendous potential considering the synergies between the two companies,” said BLOK Tech CEO Rob Dawson. “The collaboration on co-development will benefit both companies by ensuring market acceptance of new technologies. Most importantly, the product distribution and deal flow aspects of this relationship opens doors for BLOK Tech in key markets, enabling us to ramp up market penetration. I see this as a model for non-competitive companies in the emerging blockchain sector to partner for mutual success.”
FogChain CEO James Cerna commented, “Adding BLOK Tech as a strategic partner enables FogChain to get closer to customers, gaining insights that will guide our software product development. As well, we have gained an investment partner that brings strategic value to the growth of our company."
About FogChain, Inc.
FogChain is exactly as it sounds - the event horizon, where Blockchain meets the decentralized Fog, providing the most secure and efficiently distributed platform for software development on any platform. With the recent explosive demand for more edge computing and security within the Micro-Service and IoT space, FogChain's rubber meets the road with a software tool kit leveraging the best of both worlds. The inherent security of Blockchain combined with the ubiquity and performance of the Fog is the only logical and scalable path. Led by a team of Cloud and SaaS veterans, FogChain will be positioned to participate in the global enterprise software market that Research and Markets anticipates will exceed US$500 Billion by 2022.
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.