According to Tuesday’s announcement, the LOI gives GoverMedia the opportunity to negotiate the transaction exclusively without interference for up to 180 days. Upon completion, the combined entity will then do business as “EXMO.”
EXMO is a cryptocurrency exchange based in Europe with over 1.5 million active users. According to Tuesday’s announcement, the LOI gives GoverMedia the opportunity to negotiate the transaction exclusively without interference for up to 180 days.
Once the deal is completed, the combined entity will carry business under the name “EXMO.”
Roland J. Bopp, CEO of GoverMedia, said the company is “pleased” with the intended business combination of GoverMedia and EXMO, explaining it is an additional step in Gover’s strategic partnership.
“After the successful completion of the business combination, the company will have over 2.0 million active users and provides an excellent platform to further increase revenue and improve operating results in European, North American and Asian markets,” Bopp said.
Under the terms of the LOI, both GoverMedia and EXMO are expected to come up with a structure that will comply with all legal and regulatory requirements in addition to being cost effective. It is expected the final structure will be laid out in a definitive agreement, which will include representations, warranties and covenants that are typical for these kinds of transactions.
“We are very excited about this partnership because it provides us deeper insights for decision-making purposes and brings our clients best infrastructure and maximum security,” Sergey Zhdanov, CEO of EXMO, said in the joint press release.
Zhdanov added that the deal will help EXMO become one of the most credible and reliable organizations on the crypto market.
In addition to 1.5 million active EXMO users, the exchange currently has 50,000 active traders, 100 plus trading pairs and six FIAT currencies on its exchange. Fiat currencies include USD, EUR, RUB, PLN, UAH and TRY.
GoverMedia is a holding company based in Canada with a wholly-owned Russian subsidiary, GoverMedia Plus LLC. In late September, the company provided a corporate update, stating that the number of its registered users as of mid-September totaled roughly 270,000. The company has a target number of one million users over the next year or so.
Shares of GoverMedia responded positively to Tuesday’s announcement with a 10.34 percent increase to C$0.16 as of 12:13 p.m. EST. The company’s shares have dipped 72 percent from C$0.58 since its initial public offering (IPO) on March 1.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: GoverMedia Plus Canada is a client of the Investing News Network. This article is not paid for content.