Santo Mining Corp (OTCMKTS:SANP)
Santo Mining Corp (OTCMKTS:SANP) shares fell 14.29% after the company announced the signing of a Letter of Intent that paves way for it to merge with Chongqing Yuhuan Technology Co. Ltd, operating as Canoe Pool. The merger will result in a combined company called Canoe Pool America.
Under the terms of the agreement, Canoe Pool is to receive 150 million shares of Santo Mining Corp representing 35% of the post-merger stock. Santo Mining Corp (OTCMKTS:SANP) is also to issue an additional 50 million shares, upon achievement of certain Bitcoin mining milestones, for 40% of SANP post-merger stock.
“Both companies complement each other in all the right places. During the next few weeks, we will be evaluating many aspects of this merger, including new directorships to guide the company into the future,” said CEO Franjose Yglesias.
Canoe Pool is to be assigned three director slots in the combined company with the transaction expected to be completed in 4 to 6 weeks. Thursday’s plunge follows a spike in the stock to this year’s highs as investors reacted to the merger news.
Bitcoin Mining Push
Santo Mining Corp (OTCMKTS:SANP) and Chongqing are coming together to pursue growth opportunities around the cryptocurrency hype.
“The U.S. market presents a tremendous opportunity for us to grow into a Bitcoin mining powerhouse. We’re currently experiencing a U.S. led paradigm shift in acceptance of cryptocurrency markets through regulation. This is good news to the mining community in China looking to expand overseas,” said Canoe Pool CEO Ang Li.
The merger is of great importance for Canoe Pool given the uncertainty that Bitcoin continues to face in China. By merging with Santo Mining Corp, the company should be able to pursue growth opportunities in the U.S.
The Chinese company has already announced plans to begin its first mining pods before the end of the year. The company has already experienced rapid growth with two state-of-the-art mining facilities in China. Canoe Pool has also inked a partnership with Beijing based Bitmain Technologies, which is the world largest bitcoin mining organization.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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