DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB: DMGGF) (FSE:
6AX) (“DMG” or the “Company”), a vertically integrated blockchain
and cryptocurrency technology company, announces a US$2-million
strategic investment in Bosonic Inc. (“Bosonic”) a leading Silicon
Valley technology company based in San Francisco, California.
Bosonic provides critical infrastructure eliminating counterparty
credit and settlement risk in Digital Asset Markets. DMG’s
investment in Bosonic is a strategic initiative targeted at
institutional adoption of cryptocurrencies and is synergistic with
its recent investment in Brane Capital.
DMG’s investment is laser focused on
accelerating the development of its Blockseer Core+ strategy. The
investment in, and resulting partnership with Bosonic, facilitates
DMG’s access to Bosonic’s two primary technology infrastructures:
(1) institutional exchange; (2) Layer-2 blockchain-powered clearing
and settlement solutions designed to eliminate counterparty credit
and settlement risk. Bosonic is currently the only non-custodial
marketplace technology infrastructure for institutions and
fiduciaries to transact from the safety of their own custodial
accounts with zero counterparty credit and settlement risk.
“By completing this transaction, DMG’s new
partnership will help the Company develop more financial
service-related functionality for the Blockseer Ecosystem. This
initiative represents significant potential monetization of
existing Blockseer clients and the ability of DMG for the first
time to aggressively enter the consumer market for Blockseer
platforms,” noted Sheldon Bennett, DMG’s CEO.
The DMG investment is part of a larger strategic
investment into Bosonic that eventually converts into Bosonic
preferred shares. DMG receives these preferred shares based on a
25% discount to a pre-money valuation in Bosonic's next equity
financing round or a US$200M market capitalization, whichever is
lower. Mr. Bennett will serve a term on the Bosonic Board of
Directors as part of the transaction.
DMG views this as a critical move in reaching
its strategic goal to become truly vertically integrated. This
investment offers DMG the possibility for Blockseer to add to its
development road map the future ability to offer its customers
access to a Blockseer based crypto exchange platform. Additionally,
with the investment in Brane Capital and DMG’s agreements to
onboard Brane’s technology to the Breeze and Freeze wallets, DMG
will soon have a custody solution adding to Bosonic’s suite of
services, thus providing incremental potential revenue to both
partners. DMG’s planned Petra release (in Beta testing) has also
been negotiated as a future product available to all users of
Bosonic via Blockseer’s exchange. Lastly, DMG has some unique
“exchange add-ons” in development that, when proven and tested,
will be released via Bosonic’s infrastructure, which is similar to
Petra.
“We are extremely excited to partner with DMG,
whose Blockseer platform will power the world’s first digital asset
ecosystem consisting entirely of clean energy mined and OFAC clean
crypto. We believe this will help accelerate adoption of
cryptocurrencies by institutions and fiduciaries with its
integrated mining, independent custody, and various trade execution
facilities within a single environment. This initiative will set a
new standard for ESG conscious investors interested in digital
assets,” said Rosario Ingargiola, CEO and founder of Bosonic.
The wide-ranging benefits of the investment in
Bosonic will facilitate an all-inclusive marketplace available to
Blockseer that can command a premium on crypto pricing that will
benefit users and drive participation in Blockseer’s platforms.
- Allows crypto miners and users to
make instant payments 24x7 (including Layer-2 crypto payment) on
DMG’s Blockseer platforms.
- Integrates with existing Blockseer
platforms like Explorer, Walletscore, Pool and soon-to-be-released
Breeze, Freeze and Petra.
- Improves the Blockseer Ecosystem,
allowing clients to conduct crypto-related activities using
Blockseer platforms, including trading, lending, borrowing and
hedging.
- Expands Blockseer’s platform usage,
attracting new crypto mining clients and institutional
participants.
- Unearths more
cryptocurrency-related financial service opportunities.
Roth Capital advised Bosonic on the transaction
and is active in the North American FinTech and Digital Assets
space. Roth Capital Partners, LLC is a relationship-driven,
full-service investment bank that provides strategic and financial
advisory services to emerging growth companies.
DMG also announces that with the approval of
DMG’s Board of Directors, it issued 2,478,00 stock options to
managing directors and employees at an exercise price of $0.84 for
a three-year term pursuant to the Company stock option plan.
About BosonicFounded in 2016,
BOSONIC is a leading technology company based in San Francisco that
provides the infrastructure to eliminate counterparty credit and
settlement risk in Digital Asset markets. Our custodian-agnostic
infrastructure, the BOSONIC Network™, provides member institutions
with patent-pending solutions for the cryptographic digitization of
collateral, cross-custodian trading and payments transactions, as
well as cross-margining, trade netting, clearing, and settlement
automation. With over 60 member institutions, ranging from
custodians to exchanges, to the world's largest market-makers, and
billions of US Dollars in transactions processed, the BOSONIC
Network is already delivering infrastructure that's reshaping the
future of Digital Asset markets.
About DMG Blockchain Solutions
Inc.DMG is an environmentally friendly vertically
integrated blockchain and cryptocurrency company that manages,
operates, and develops end-to-end digital solutions to monetize the
blockchain ecosystem. DMG’s sustainable businesses are segmented
into two business lines under the Core and Core+ strategies and
unified through DMG’s vertical integration.
For more information visit the DMG website here to learn more.
Follow @dmgblockchain on Twitter and subscribe to DMG's YouTube
channel.
On behalf of the Board of Directors,Sheldon Bennett, CEO &
Director
For additional information, please contact:DMG Blockchain
Solutions Inc.Email: investors@dmgblockchain.comWeb:
www.dmgblockchain.com
Investor Relations Contact:CORE IR 516-222-2560
For Media Inquiries:Jules Abraham, CORE IRjulesa@coreir.com
Neither the TSX Venture Exchange nor its
Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Future changes in the Bitcoin network-wide
mining difficulty rate or Bitcoin hashrate may materially affect
the future performance of DMG’s production of Bitcoin, and future
operational results could also be materially affected by the price
of Bitcoin and an increase in hashrate mining difficulty.
Cautionary Note Regarding
Forward-Looking Information
This news release contains forward-looking
information or statements based on current expectations.
Forward-looking statements contained in this news release include
statements regarding the expectations of the relationships and
integration with Bosonic and Brane and the benefits therefrom, the
development of its Core+ strategy, the planned release of Petra,
the ability to enter the market sooner than anticipated with
certain products and services, events, courses of action, and the
potential of the Company’s technology and operations, among others,
are all forward-looking information.
Forward-looking statements consist of statements
that are not purely historical, including any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Such information can generally be identified by the use of
forwarding looking wording such as "may", "expect", "estimate",
"anticipate", "intend", "believe" and "continue" or the negative
thereof or similar variations. The reader is cautioned that
assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as
a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including but not limited to, market and other conditions,
volatility in the trading price of the Common Shares, business,
economic and capital market conditions; the ability to manage
operating expenses, which may adversely affect the Company's
financial condition; the ability to remain competitive as other
better financed competitors develop and release competitive
products; regulatory uncertainties; access to equipment; market
conditions and the demand and pricing for products; the demand and
pricing of bitcoins; security threats, including a loss/theft of
DMG's bitcoins; DMG's relationships with its customers,
distributors and business partners; the inability to add more power
to DMG's facilities; DMG's ability to successfully define, design
and release new products in a timely manner that meet customers'
needs; the ability to attract, retain and motivate qualified
personnel; competition in the industry; the impact of technology
changes on the products and industry; failure to develop new and
innovative products; the ability to successfully maintain and
enforce our intellectual property rights and defend third-party
claims of infringement of their intellectual property rights; the
impact of intellectual property litigation that could materially
and adversely affect the business; the ability to manage working
capital; and the dependence on key personnel. DMG may not actually
achieve its plans, projections, or expectations. Such statements
and information are based on numerous assumptions regarding present
and future business strategies and the environment in which the
Company will operate in the future, including the demand for its
products, the ability to successfully develop software, that there
will be no regulation or law that will prevent the Company from
operating its business, anticipated costs, the ability to secure
sufficient capital to complete its business plans, the ability to
achieve goals and the price of bitcoin. Given these risks,
uncertainties and assumptions, you should not place undue reliance
on these forward-looking statements. The securities of DMG are
considered highly speculative due to the nature of DMG's business.
For further information concerning these and other risks and
uncertainties, refer to the Company’s filings on www.SEDAR.com
including the annual information form for the year ended September
30, 2020, filed on January 28, 2021.
Factors that could cause actual results to
differ materially from those in forward-looking statements include,
failure to obtain regulatory approval, the continued availability
of capital and financing, equipment failures, lack of supply of
equipment, power and infrastructure, failure to obtain any permits
required to operate the business, the impact of technology changes
on the industry, the impact of Covid-19 or other viruses and
diseases on the Company's ability to operate, secure equipment, and
hire personnel, competition, security threats including stolen
bitcoins from DMG or its customers, consumer sentiment towards
DMG's products, services and blockchain technology generally,
failure to develop new and innovative products, litigation,
increase in operating costs, increase in equipment and labor costs,
decrease in the price of Bitcoin, failure of counterparties to
perform their contractual obligations, government regulations, loss
of key employees and consultants, and general economic, market or
business conditions. Forward-looking statements contained in this
news release are expressly qualified by this cautionary statement.
The reader is cautioned not to place undue reliance on any
forward-looking information. The forward-looking statements
contained in this news release are made as of the date of this news
release. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, the Company undertakes no
obligation to comment on the expectations of, or statements made by
third parties in respect of the matters discussed above.
All information in this news release concerning
BOSONIC Digital has been provided for inclusion herein by BOSONIC
Digital. Although DMG has no knowledge that would indicate that any
information contained herein concerning BOSONIC Digital is untrue
or incomplete, DMG assumes no responsibility for the accuracy or
completeness of any such information.
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