CASTLE ROCK, Colo.,
Dec. 11, 2017 /CNW/ -- Riot
Blockchain Inc. (Nasdaq: RIOT) (the "Company") today announced that
its majority owned Tess Inc. ("TessPay") has entered into a
non-binding letter of intent ("LOI") to merge with Cresval Capital
Corp. ("Cresval") (TSX-V: CRV). TessPay is a blockchain company
developing a supply chain payment platform for businesses to
attempt to guarantee payment on time and in full. After the
closing of the anticipated merger, TessPay will be publically
traded on the TSX Venture Exchange (the "TSXV") and change its name
to "TessPay Inc.".
The LOI provides that TessPay will be issued 80,000,000 shares
of Cresval, and the present shareholders of Cresval will retain
8,400,000 shares of the combined company TessPay post-merger. Riot
Blockchain will receive 41,600,000 shares resulting from its 52%
ownership of TessPay.
Assuming that TessPay and Cresval enter into a definitive
agreement, the parties expect that the merger can be completed by
the 2nd quarter of 2018. No assurance can be given that
a definitive agreement will be entered into, that the proposed
merger will be consummated, or that the combined company will be
able to obtain adequate funds needed to fund its business plan.
The merger would be the first of Riot Blockchain's investments
to become a stand-alone public company. Haywood Securities Inc
acted as a financial advisor on the transaction.
Jeff Mason, Chief Executive
Officer of TessPay, stated, "The decision to take the company
public provides us access to traditional capital markets as we
continue developing our blockchain technology solution. This
environment will also foster transparency and accountability moving
forward, providing confidence to investors and prospective
customers alike."
The blockchain is a decentralized and encrypted ledger that
offers a secure, efficient, verifiable and permanent way of storing
records and other information without the need for intermediaries.
These protocols are the backbone of numerous digital currencies,
including Bitcoin, Ethereum and Litecoin. Blockchain protocols have
a wide range of use, including processing transactions, accounting,
verification and proof of ownership across a far-reaching spectrum
of applications.
About Riot Blockchain
Riot Blockchain, Inc. is leveraging its expertise and a network
of professional advisors to build and support blockchain
technologies. It is establishing an Advisory Board with
technical experience intending to become a leading authority and
supporter of blockchain, while providing investment exposure to the
rapidly growing Bitcoin and blockchain ecosystems. For more
information, visit http://www.RiotBlockchain.com/.
About TessPay
TessPay is a blockchain company developing a payments ecosystem
for component and sub-component supply chain settlements
(payments). TessPay believes a transition will occur from the
present state wherein payments down a supply chain are essentially
manual (triggered by a manager or trusted party) to a blockchain
protocol that mandates simultaneous payment of all component and
sub-component suppliers when the primary party makes a payment into
the chain.
TessPay intends to develop and utilize TessPay Smart Contracts,
wherein a payment from the primary party in the chain would be
automatically apportioned to all other eligible parties in the
chain concomitant with payment by the primary party. The
creditworthy financial condition of the primary party would
facilitate lender involvement in the supply chain under the
security afforded by the TessPay Smart Contract. The first
TessPay smart contracts payment system will be tailored to the
needs of the international telecommunications industry in respect
of cross border telephone calls. For more information, visit
http://tesspay.io/.
Safe Harbor
The information provided in this press release may include
forward-looking statements relating to future events or the future
financial performance of the Company. Because such statements are
subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Words such as "anticipates," "plans," "expects,"
"intends," "will," "potential," "hope" and similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are based upon current expectations of
the Company and involve assumptions that may never materialize or
may prove to be incorrect. Actual results and the timing of events
could differ materially from those anticipated in such
forward-looking statements as a result of various risks and
uncertainties. Detailed information regarding factors that may
cause actual results to differ materially from the results
expressed or implied by statements in this press release relating
to the Company may be found in the Company's periodic filings with
the Securities and Exchange Commission, including the factors
described in the sections entitled "Risk Factors", copies of which
may be obtained from the SEC's website at www.sec.gov. The parties
do not undertake any obligation to update forward-looking
statements contained in this press release.
Media Contacts
Karen
Chase or Travis Kruse
Russo Partners, LLC
(646) 942-5627
(212) 845-4272
karen.chase@russopartnersllc.com
travis.kruse@russopartnersllc.com
Investor Contact
IR@RiotBlockchain.com
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SOURCE Riot Blockchain, Inc.