Chinese language lottery companies supplier 500.com has continued its enlargement into the world of cryptocurrency with the acquisition of Blockchain Alliance Applied sciences, which owns BTC.com.
Beneath the deal, 500.com will difficulty 44,353,435 new Class A peculiar shares – representing round 10% of its general share capital – to Blockchain Alliance in alternate for all of its shares.
The deal is anticipated to shut by 15 April, 2021.
BTC.com, Blockchain Alliance’s flagship product, gives cryptocurrency mining pool companies and cryptocurrency wallets, in addition to details about cryptocurrencies.
Along with the preliminary cost of shares, if the BTC.com mining pool enterprise information a internet working revenue within the fiscal 12 months ending December 31, 2021, 500.com will difficulty additional shares, as much as a most of twenty-two,176,718 if the revenue totals $20m or extra.
Nevertheless, if the enterprise makes a loss through the 12 months, 500.com could repurchase shares within the preliminary cost for a value of simply $0.00005 every. The quantity of shares accessible to be repurchased relies on the dimensions of the loss, with a most of 10% of the shares for a lack of $10m or extra.
The deal marks the most recent of a number of strikes by 500.com to grow to be a participant within the cryptocurrency sphere, beginning when it brought in Xianfeng Yang as its new chief executive in January.
Yang has expertise within the cryptocurrency business, having beforehand led the development and operation of the Loto Interactive’s main information centre, which primarily dealt with cryptocurrency mining.
500.com introduced it will acquire a majority stake in Loto Interactive later in January, rising its share within the firm from 33.7% to 54.2% in a deal value round HK$105m (£9.9m/€11.2m/$13.5m).
After saying its intention to purchase around $14.4m worth of Bitcoin mining machines from unnamed sellers in January, it later agreed in February to acquire up to 15,900 more machines from two extra sellers.
500.com’s share value has skyrocketed because the announcement of the acquisition. After closing at a value of $20.00 on Monday, 500.com opened at $33.35 as we speak, a 66.8% enhance. Its shares are presently buying and selling at $30.43.