BTCS Closes on Remaining Balance of Financing and Prepares to Move Forward on Planned Merger with Blockchain Global
October 25 2017 - 9:05AM
InvestorsHub NewsWire
BTCS Closes on Remaining Balance of Financing
and Prepares to Move Forward on Planned Merger with Blockchain
Global
Silver Spring, MD -- October 25, 2017 --
InvestorsHub NewsWire -- BTCS Inc. (OTC: BTCS) (“BTCS” or the
“Company”), a blockchain technology focused company, announced
today it has closed on the remaining balance of its previously
announced financing, which was co-led by Blockchain Global Ltd.
(“BGL”). The Company received a total of $1.1 million from the sale
of its Series C -1 Convertible Preferred Stock (the “C-1”) and
Warrants. On October 10, 2017, the Company closed on the initial
$100,000 of a $1 million minimum financing which included $250,000
in bitcoin paid directly to BTCS and $750,000 in cash. The Escrow
Agent was permitted to release $100,000 to BTCS which allowed BTCS
to pay its auditors, a valuation consultant, an accounting advisory
firm and counsel so it could file its Form 10-Q for the six months
ended June 30, 2017. The Form 10-Q was filed on October
24th after which the Escrow Agent paid BTCS the $650,000
held in escrow as well as an additional $100,000 paid by a new
investor.
“We’ve now secured the necessary funds to settle
all of our debt, excluding derivative liabilities, a key step in
moving forward with our planned merger with BGL,” stated Charles
Allen, CEO of BTCS. “With the filing of Form 10-Q and other key
BTCS merger conditions now met from the C-1 financing, we’re
well-positioned to execute on what we believe will be a
transformational milestone for our
companies.”
The
planned merger is subject to negotiation and execution of a
definitive merger agreement, BGL shareholder and board approvals
and other customary closing conditions. BTCS can provide no
assurances or guarantees it will be able to consummate the planned
merger.
About BGL:
Blockchain Global (formally Bitcoin Group) is a
leading multi-national pure-play Blockchain Technology company
operating across four business segments, including transaction
verification services, an institutional exchange platform, a
blockchain start-up accelerator, and a blockchain technology
consultancy. BGL’s vision is to increase availability and
transparency of data to make both public and private sector
industries more efficient and integrated. BGL leverages industry IP
and knowhow to commercialize blockchain enabled platforms that
uplifts trust throughout the digital
spectrum.
About BTCS:
BTCS is an early entrant in the Digital Asset
market and one of the first U.S. publicly traded companies to be
involved with Digital Assets and blockchain technologies.
Subject to additional financing, BTCS plans to create a portfolio
of digital assets including bitcoin and other “protocol tokens” to
provide investors a diversified pure-play exposure to the bitcoin
and blockchain industries. BTCS intends to acquire digital assets
through: open market purchases, participating in initial digital
asset offerings (often referred to as initial coin offerings).
Additionally, BTCS may acquire digital assets by resuming our
transaction verification services business (often referred to as
mining) through outsourced data centers and earning rewards in
digital assets by securing their respective blockchains. BTCS
is also keenly focused on growth through acquisition and has signed
a non-binding letter of intent to merge with Blockchain Global
Ltd. The blockchain is a decentralized public ledger and has
the ability to fundamentally impact all industries on a global
basis that rely on or utilize record keeping and require trust. For
more information visit: www.btcs.com
Forward-Looking
Statements:
Certain statements in this press release,
including those related to the planned merger constitute
“forward-looking statements” within the meaning of the federal
securities laws. Words such as “may,” “might,” “will,” “should,”
“believe,” “expect,” “anticipate,” “estimate,” “continue,”
“predict,” “forecast,” “project,” “plan,” “intend” or similar
expressions, or statements regarding intent, belief, or current
expectations, are forward-looking statements. While the Company
believes these forward-looking statements are reasonable, undue
reliance should not be placed on any such forward-looking
statements, which are based on information available to us on the
date of this release. These forward-looking statements are based
upon current estimates and assumptions and are subject to various
risks and uncertainties, including without limitation those set
forth in the Company's filings with the Securities and Exchange
Commission, not limited to Risk Factors relating to its digital
currency business contained therein and contractual issues that
arise in the negotiations of the planned merger. Thus, actual
results could be materially different. The Company expressly
disclaims any obligation to update or alter statements whether as a
result of new information, future events or otherwise, except as
required by law.
BTCS Investor
Relations:
Michal Handerhan
BTCS Inc.
(202) 430-6576
IR@btcs.com