VANCOUVER, British Columbia, August 29, 2018 – BlackChain Solutions Inc. (the “Company” or “BlackChain”) (CSE: BIS), (FWB: B2IN), an analytics software company, is pleased to announce that it has entered into a letter of intent (the “LOI”) with ChainTrack Technologies Inc. (“ChainTrack”) for a proposed transaction to acquire all of their issued and outstanding common shares of ChainTrack, a company providing Internet-of-Things (IoT)-powered supply chain tracking solutions, including ‘cold chain tracking’, for the food and pharmaceutical industries
Cold chain tracking enables delivery and logistics providers to manage their fleet effectively through visualization and live tracking of temperature, location, and environment. Cold chain is an essential part of the product delivery lifecycle and is quickly becoming a regulatory requirement in many jurisdictions, most recently California. ChainTrack is the sole provider of ERP analytics and API to Volta Air Technologies Inc. (“Volta Air”), a delivery vehicle refrigeration solution provider. Integrated with Volta Air’s electric transport refrigeration units, ChainTrack supplies end-to-end cold chain tracking solutions to some of the leading delivery and logistics actors, both in Canada and beyond. Clients include Sustainable Produce Urban Delivery (SPUD) and BYD Motors Inc. BYD has been the world’s largest electric vehicle manufacturer for the past three years running, in both consumer and commercial/industrial electric vehicles. BYD is a publicly traded company, whose largest single shareholder is Warren Buffet’s Berkshire Hathaway.
As part of the proposed acquisition, BlackChain will assume service contracts for existing ChainTrack clients and continue to provide them with fully integrated ERPs, API, and cold chain tracking, in addition to expanding the company’s offerings. ChainTrack also intends to further develop it’s API based SaaS platform, powered by Blockchain (ChainTrack) that includes the existing cold chain and other relevant ERP modules. Under the proposed transaction, BlackChain will acquire all the outstanding shares of ChainTrack for the issuance of 16.5 million BlackChain common shares on a post-consolidated basis (see below for more information) and a cash payment of $75,000 CAD.
The acquisition of ChainTrack’s technology will expand and enhance BlackChain’s existing product line. BlackChain intends to continue to develop its other businesses and assets, including its digital asset exchange solution, peer-to-peer lending platform, and credit risk analysis application for the digital asset industry.
Zayn Kalyan, CTO of BlackChain stated “ChainTrack’s cold chain tracking technology is a perfect addition to the BlackChain product suite. It aligns with our vision of diversifying BlackChain’s industry focus, while still providing solid analytics and compliance solutions. We look forward to working with the ChainTrack team, leveraging their valuable relationships and extensive client network”.
BlackChain will issue additional news releases related to the proposed transaction with ChainTrack, and other material information as it becomes available.
Consolidation and Private Placement
BlackChain announces that it intends to consolidate its issued and outstanding common shares on the basis of one (new) post-consolidation share for each two (old) pre-consolidation shares (the “Consolidation”).
The Company currently has 81,005,322 common shares issued and outstanding. Following the Consolidation, it is anticipated that the Company will have approximately 40,502,661 common shares issued and outstanding, and will continue to trade on the Canadian Securities Exchange under the existing symbol “BIS”.
The exercise or conversion price and the number of common shares issuable under any of the Company’s outstanding stock options and any outstanding share purchase warrants will be proportionately adjusted to reflect the Consolidation in accordance with their respective terms. No fractional common shares will be issued pursuant to the Consolidation and any fractional common shares that would otherwise be issued will be rounded down to the nearest whole number.
BlackChain also announces that it intends to carry out a non-brokered private placement (the “Private Placement”) of up to 5,000,000 common units (each a “Unit”) at a price of $0.10 per Unit Share on a post-consolidation basis for aggregate gross proceeds of up to $500,000. Each Unit consists of one common share and one share purchase warrant. Each warrant is exercisable at a price of $0.15 per share for a term of two years.
The Company may also pay finders’ fees in connection with the Private Placement in accordance with the policies of the Canadian Securities Exchange and applicable securities legislation.
About BlackChain Solutions Inc.
BlackChain Solutions Inc. is an analytics and risk management company that is leveraging digital asset technology to transform and modernize multiple industries. BlackChain is taking a diversified approach to the analytics and technology space, delivering practical solutions in the finance, logistics, cannabis, and pharmaceutical industries.
BlackChain is a publicly-traded company listed on the Canadian Securities Exchange (CSE); trading symbol BIS (C.BIS or BIS.cn). For more information about the company please contact us at 1-778-938-3367.
