HyperBlock and CryptoGlobal Provide Corporate Update

CryptoGlobal (TSXV:CPTO) and Hyberblock Technologies have provided a corporate update in anticipation of the companies’ proposed merger.

As quoted in the press release:

On May 31, CryptoGlobal and HyperBlock mailed a Joint Management Information Circular (the “Circular”) to shareholders. As described in the Circular, both companies are holding special shareholder meetings on June 22, 2018where shareholders of both HyperBlock and CryptoGlobal will vote on a resolution in support of the HyperBlock’s proposed merger with CryptoGlobal by way of plan of arrangement under the Business Corporations Act (Ontario), (the “Plan of Arrangement”). As part of the Plan of Arrangement, the resulting combined company will also acquire Project Northwest from Project Spokane, LLC (a third-party vendor). The Circular contains important instructions on how shareholders may cast their vote in person or by proxy. As the Circular has been distributed to CryptoGlobal shareholders, the TSXV is expected to resume trading of CryptoGlobal’s shares on June 7, 2018.

Under the proposed merger, CryptoGlobal shareholders will receive 0.4229 of a common share of HyperBlock for each CryptoGlobal common share, valuing each CryptoGlobal common share at $0.74. HyperBlock has secured irrevocable hard lock-up agreements to vote in favour of the merger from CryptoGlobal shareholders representing approximately 58% of the currently issued and outstanding CryptoGlobal common shares. CryptoGlobal has secured irrevocable hard lock-up agreements to vote in favour of the Transaction from HyperBlock shareholders representing approximately 50% of the currently issued outstanding HyperBlock common shares.

Following the acquisition, the newly combined company is expected to have approximately CDN$9 million of cash and cryptocurrency on-hand. HyperBlock has generated significant positive annual EBITDA (US$20.8 million on a historical run-rate basis), which the company believes will fuel outsized growth and strategic expansion going forward. See additional details below.

Click here to read the full press release.