Blockstrain, a Vancouver-based company that has developed a blockchain platform for businesses in the cannabis industry, has signed a letter of intent to acquire Spark Digital Technologies.
IgnitePro, combined with Blockstrain’s technology, will assist businesses with regulation and compliance standards.
The letter of intent, dated February 28, outlines that Blockstrain will acquire all issued and outstanding securities of Spark. For the acquisition, the letter of intent also contemplates issuing 15,000,000 shares of Blockstrain to the shareholders of Spark at $0.26 per share. When the acquisition is closed, former shareholders of Spark are expected to hold approximately 15.8 percent of the outstanding common shares of Blockstrain.
Spark is the owner of IgnitePro, a software platform built specifically for the cannabis industry. The platform assists with inventory and document management, and regulation reporting using machine learning and AI. The platform also includes a mobile companion app, which is used for tracking and monitoring. IgnitePro’s infrastructure is powered by Microsoft Azure.
Blockstrain said that IgnitePro, combined with Blockstrain’s technology, will assist businesses with regulation and compliance standards.
Blockstrain is set to enter into the definitive agreement with Spark on, or before, April 29.
The company called the acquisition a non-arms-length transaction, meaning the two companies have an existing relationship. Robert Galarza, CEO of Blockstrain, was previously, and continues to be, a director and controlling shareholder of Spark. Additionally, Tommy Stephenson, CTO of Blockstrain, is also a director and controlling shareholder of Spark.
In January, Toronto-based WeedMD, a federally-licensed producer and distributor of cannabis, launched a strain validation program with Blockstrain. Blockstrain’s Master Genome Strain Registration and Clone Strain Registration program allows customers to verify that the strains they are buying are authentic
In the future, Blockstrain has plans to implement a quick response barcode assigned to each plant batch that will tell its users about cannabinoid content, and how it was cloned and cultivated.
Featured image via Pixabay.