Graph Blockchain (GBLC.C) inked an all-share arm’s length acquisition deal with cryptocurrency miner, Babbage Mining, yesterday that’s expected to close February 1, 2021.
Babbage’s principle focus is on the altcoins, which are basically any cryptocurrency that isn’t Bitcoin, through both proof-of-work and proof-of-stake consensus mechanisms. Babbage gives it investors exposure to cryptocurrency markets and all the potential for disruption and gains that altcoins have to offer.
“Pursuant to the agreement, Graph will acquire all of the issued and outstanding common shares in the capital of Babbage at an aggregate purchase price of $4.8-million to be satisfied by the issuance of an aggregate of 60 million units of the company. Each consideration unit will be issued at a deemed price of eight cents per unit and comprises one common share and one common share purchase warrant. Each warrant is exercisable into one common share in the capital of the company at a price of 10 cents per common share for a period of 18 months from the closing of the acquisition,” according to the press release.
Graph Blockchain was an equity.guru client in the dying months of 2018 when the words ‘blockchain’ and ‘failure’ were synonymous—especially after the collapse of the 2017 bitcoin market. Now nearly three years later, they’ve gone through enough changes that it’s been difficult to keep up—having scrambled around from industry to industry (first ecommerce, then psychedelics, and now apparently back to cryptocurrency) trying to find something to give them a lease on life.
Now with cryptocurrency in ascendancy courtesy of the Bitcoin bull run and the attendant rising-tides that affect all altcoin boats, they’ve managed to find new life. Good for them and good for you if you’re one of the few and proud still holding after all this time.
They’re down almost 6% on the news and presently trading at $0.08, which may not seem like a lot unless you’ve been watching this company for awhile. It’s really only been in the past month and a half that they’ve broken out of the steady range between a penny and a half and three cents to where they now sit.
They’ve been waiting for this move for awhile, because now it means they can address their poor cash position and actually work on growing the company. Naturally, they’ve done just that, as in addition with this acquisition they’re raising $2 million through a private placement involving 25 million units at $0.08. Their stated intention with the funds include general working capital and the purchase of new crypto mining equipment.
That’s going to be a touch market to get into, but it’ll be interesting to see what they do in the future.