Blok Technologies, a Vancouver-based company investing in, and developing companies in the blockchain industry, has entered into a non-binding letter of intent (LOI) to acquire US private corporation, Sierra Blockchain.
Blok Tech said the acquisition gives it access to Sierra’s suite of software tools and apps that run on blockchain methodology. In addition, Sierra has a license agreement with Intensity Mining Corp., which has developed a mining software allowing for the rapid mining of coins. Sierra is developing new “low power” blockchain products, using Intensity’s tools.
The acquisition gives Blok Tech access to Sierra’s suite of tools that run on blockchain tech.
“The Sierra suite of products is feature-rich with blockchain technology, we believe it will be an efficient and effective technology solution for businesses and consumers,” Blok Tech director Yari Nieken said. “FinTech are key areas of focus for us, and we have strategically targeted these sectors for investment and product development.”
Following the acquisition, the board directors at Blok Tech expect to be appointing one new board member from Sierra. The new board will then name a new management team including members from Sierra, Blok Tech.
The LOI was signed on February 25. Blok Tech will issue Sierra 24,000,000 shares of common stock at the closing price on the Canadian Securities Exchange (CSE) as of February 26 at $0.025. Shares will then be distributed proportionally to Sierra shareholders.
Blok Tech said the advantage of using low power blockchain is that applications normally designed using cloud-based architecture can now be designed around a node protocol. Node protocol allows each user to become a node on the blockchain connected by a user datagram protocol-based node-to-node connectivity protocol. Low power blockchain has the potential increase security and lower hardware costs, as well as lower energy use.
“I am delighted that we have found a solid partner in Blok Tech to move our low power blockchain suite of tools forward,” said Sierra vice president, John Ryan.
The LOI will be superseded by a Definitive Stock Acquisition Agreement. The transaction is pending approval from the CSE.
Featured image via Pixabay.