- BlockchainK2 (BITK) is looking to capitalise on the convergence of gaming and cryptocurrency with the acquisition of Equiti Games
- Headquartered in New York, Equiti Games is a blockchain-based gaming technology platform that connects games directly to their markets
- BlockchainK2 will acquire 100 per cent of Equiti Games by issuing 120,000 common shares to the vendors
- The company will also fund Equiti Games up to US$200,000 (roughly C$255,000) and is eligible to receive certain earn-out payments
- BlockchainK2 is currently down 7.69 per cent to C$0.72 per share
BlockchainK2 (BITK) is looking to capitalise on the convergence of gaming and cryptocurrency with the acquisition of Equiti Games.
Headquartered in New York, Equiti Games is a blockchain-based gaming technology platform that facilitates the purchase, distribution and exchange of digital games and in-game items, providing an infrastructure that connects games directly to their markets and reduces overhead costs.
According to the terms of the initial agreement, BlockchainK2 will purchase 100 per cent of Equiti Games by issuing a total of 120,000 common shares to the vendors.
BlockchainK2 has also agreed to fund Equiti games up to the value of US$200,000 (roughly C$255,000) and is eligible to receive certain earn-out payments, which will be made depending on the success of the Equiti Games business.
Sergei Stetsenko, CEO of BlockchainK2, said the acquisition will provide value for the company’s shareholders in both the near and long term.
“This acquisition fills an underserved need in the gaming industry where it allows game developers and influencers to reach the game end-user directly, increasing efficiency and decreasing costs using cutting edge blockchain technology,” he added.
The gaming industry has seen tremendous growth over the last few years. Current estimates suggest it is collectively worth US$159 billion (C$203.1 billion) and is growing at a rate of 9.3 per cent year-over-year.
Completion of the acquisition remains subject to a number of conditions, including the satisfaction of due diligence processes, and the negotiation and execution of a definitive agreement.
The two companies have agreed to an exclusivity period until February 28, 2021.
BlockchainK2 is currently down 7.69 per cent to C$0.72 per share at 3:03pm EST.