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Financial markets are a buzz with all things Blockchain and Bitcoin with speculation reaching feverpitch.  Rebranded biotech stock Riot Blockchain $RIOT surged over 45% on Monday after it announced a merger of majority owned Tesspay with Cresval Capital. This move continues a flurry of mergers from $RIOT since it rebranded itself from a biotech company in October.

riot Blockchain

Riot Blockchain Inc NASDAQ: RIOT $RIOT Dec 11,2017 Close $23.08 +$7.22 +45.52%

$RIOT said that Tess entered into a non-binding letter of intent to merge with Cresval, a company focused on the exploration of mineral resources. Cresval does not currently have any exploration projects underway, and the company said its material assets are mineral claims in British Columbia, Canada. Under the letter of intent, TessPay gets 80 million shares of Cresval and Cresval's shareholders will keep 8.4 million shares of the combined company. The merged company would be the first backed by Riot to be a public, standalone company, Riot said. the new company, TessPay, Inc would trade on the TSX Venture Exchange in Canada.

Jeff Mason, TessPay's CEO, said in a statement.

"The decision to take the company public provides us access to traditional capital markets as we continue developing our blockchain technology solution. This environment will also foster transparency and accountability moving forward, providing confidence to investors and prospective customers alike."

Riot Blockchain would get 41.6 million shares from its 52% ownership of TessPay.

A merger, if it were agreed to, would likely close in the second quarter of next year. However, the company said that no deal was guaranteed.

Monday's announcement was perfectly announced for maximum aaffect, the night befpre comes a day after Bitcoin futures launched on Cboe Global Markets(CBOE), with similar Bitcoin futures from CME Group (CME) to be launced on Dec. 18.

Riot Blockchain earlier this month said one of its holdings Coinsquare, that operates the Canadian digital currency exchange closed an investment worth 10.5 million Canadian dollars from a global asset manager. The month before $Riot invested in the blockchain company Verady that provides auditing and accounting services for cryptocurrencies and other assets. It also bought 1,200 Bitcoin mining machines.

Source: RIOT; IBD

 

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