Cresval Capital Signs Non-Binding LOI to Merge with Tess Inc. a Blockchain Company Developing a Supply Chain Payment Platform - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - December 12, 2017) - Cresval Capital (TSXV: CRV) announced that it has entered into a non-binding letter of intent to merge with Tess Inc., which operates as TessPay, (www.tesspay.io) a blockchain company developing a supply chain payment platform for businesses, such as wholesale telecom carriers, to attempt to guarantee payments in full and on-time.
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TessPay is subsidiary of Riot Blockchain, (www.RiotBlockchain.com) which trades on NASDAQ under the symbol "RIOT". Riot Blockchain intends to gain exposure to the blockchain ecosystem through targeted investments in the sector, with a primary focus on the Bitcoin and Ethereum blockchains.
Under the terms of the LOI, Cresval will issue 80 million shares of Cresval to TessPay, with the current shareholders of Cresval retaining 8.4 million shares of TessPay post-merger. Riot Blockchain will receive 41.6 million shares of Cresval, resulting from its 52% ownership of TessPay.
John O'Rourke, CEO, Riot Blockchain, stated: "TessPay's public listing is the next step forward as we develop our blockchain assets. Bringing blockchain technologies to the public sector gives investors greater exposure to these markets and we will continue to seek new opportunities to expand our investments in the blockchain ecosystem."
Assuming all parties enter into a definitive agreement, the proposed transaction, which is anticipated to be completed pursuant to a plan of arrangement, should be completed during the 1st half of 2018.
If completed as proposed, TessPay will be a separate, stand-alone company, which intends to list on the TSX Venture Exchange as TessPay Inc. Cresval will continue to hold its resource properties and liabilities, with its shares listed separately on the TSX Venture Exchange.
Haywood Securities acted as a financial advisor on the transaction.
Jeff Mason, CEO 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."
As part of the proposed transaction, TessPay intends to complete a private placement of an unsecured convertible 5%, 3-year note for gross proceeds of up to $3.5 million. Subject to certain conversion limitations, the notes are convertible at $0.10 per share, or 10,000 shares for every $1,000 invested.
Trading in the shares of Cresval is currently halted and is expected to remain halted pending filing of a management informational circular for a special shareholder meeting, at which time Cresval may request a reinstatement of trading. Cresval last traded at $0.05 and with 24.8 million shares outstanding, the company is capitalized at $1.2 million.
For more information please visit the company's website www.cresval.com, or contact Lee Ann Wolfin, President, at 604-913-7788 or email lawolfin@cresval.com.
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