CryptoGlobal Acquires Blockchain Dynamics

Strategic Acquisition Closes - Delivers Accretive Revenue Streams:
Enterprise-Grade Custodial, Specialized Crypto Trading and Security

TORONTO, March 29, 2018 /CNW/ - (TSXV: CPTO) CryptoGlobal Corp. has officially acquired Blockchain Dynamics Inc., a full service platform offering security, custodial services, trading and staking across a diversified base of cryptocurrencies. 

Blockchain Dynamics provides enterprise-grade cold storage and crypto security solutions. The company also operates a specialized crypto trading desk to take advantage of trading opportunities across the entire universe of crypto currencies.

Pursuant to the transaction, CryptoGlobal has issued 21,661,636 common shares at a deemed value of $1.40 per share for a total transaction value of approximately $30 million. In connection with the transaction, CryptoGlobal also issued 400,260 incentive stock options to certain consultants and management of the company with an exercise price of $0.87 per share, with 266,840 options expiring 90 days from the closing of the transaction, and 133,420 options expiring five years from the closing of the transaction.

Blockchain Dynamics also brings exclusive custodial service arrangements, $3.1 million in cash and approximately over $500,000 in cryptocurrency holdings to CryptoGlobal. CryptoGlobal announced its agreement to acquire the company on March 1st, 2018 and the acquisition officially closed on March 29, 2018 upon completion of due diligence.  

Building a Diverse Crypto EcoSystem
According to CryptoGlobal CEO Rob Segal, the Blockchain Dynamics acquisition will allow CryptoGlobal to securely store and trade its own crypto holdings and provide custodial services for institutional investors, exchanges and token holders.

"This strategic acquisition strengthens the company's vision to build a leading FinTech company, underpinned by a diversified cryptocurrency mining operation with an ecosystem that includes custodial, crypto trading and insights," says CryptoGlobal President James Millership.

Blockchain Dynamics is led by Chris McGarrigle, an encryption and cyber security specialist who has a 20 year track-record working with Europe's biggest banks — as well as with clients in the energy and defense sectors. McGarrigle says the integration of Blockchain Dynamics' diversified revenue streams may help insulate CryptoGlobal and its shareholders from the ups and downs of the digital currency market — by mitigating risk and optimizing reward — over the long-term.

Advisors
CryptoGlobal's legal advisor is Cassels Brock & Blackwell LLP.  Blockchain Dynamics' financial advisor is Canaccord Genuity and its legal advisor is Wildeboer Dellelce LLP.  Historical data for Blockchain Dynamics is nominal and the company does not consider such amounts to be material.

Canaccord Genuity Corp., who acted as financial advisor to Blockchain Dynamics in connection with the transaction, received a 3% success fee on closing.

CryptoGlobal – We Power the Blockchain
CryptoGlobal is a leading Canadian blockchain and financial technology company that's built on a strong foundation of diversified cryptocurrency mining. Currently, CryptoGlobal focuses on mining Bitcoin, DASH, Ether and Litecoin – using a mix of custom-tuned mining technologies.

Learn more about CryptoGlobal at www.cryptoglobal.io

Cautionary Note Regarding Forward Looking Information

This news release contains certain forward-looking information and forward-looking statements within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated benefits of the acquisition to CryptoGlobal and its shareholders; the growth potential and future growth of CryptoGlobal on a post-acquisition basis; and information pertaining to strategy, plans or future financial performance.

These forward-looking statements are based on reasonable assumptions and estimates of management of CryptoGlobal at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CryptoGlobal to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in the prices of cryptocurrencies mined by CryptoGlobal; historical prices of cryptocurrencies and the ability of CryptoGlobal to mine cryptocurrencies consistent with historical practices; the presence of laws and regulations that may impose restrictions on the ability of the consolidated business to operate; the speculative nature of cryptocurrency mining and blockchain operations; changes in business plans and related parameters as such plans continue to be evaluated; and those factors described under the heading "Risks Factors" in CryptoGlobal's filing statement dated January 17, 2018 available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of CryptoGlobal believes, or believed at the time, to be reasonable assumptions, CryptoGlobal cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. CryptoGlobal does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE CryptoGlobal Corp.