BTCS Inc. (OTCMKTS:BTCS)
BTCS Inc. (OTCMKTS: BTCS) fell 7.7% after announcing the closing of previously announced financing led by Blockchain Global Ltd. The company has since received a total of $1.1 million from the sale of Series C-1 preferred stock and warrants for the purchase of additional shares.
Blockchain Global-BTCS Inc. Merger
The $1.1 million financing includes $250,000 in bitcoin paid directly to BTCS Inc. (OTCMKTS:BTCS), and $750,000 in cash. The company’s escrow agent has already released $100,000 that is to be used to pay auditors as well as a valuation consultant and an accounting advisory firm.
According to the company’s Chief Executive Officer, Charles Allen, the company has all the necessary funds needed to settle outstanding debt. The new financing also paves way for the company to move forward with the proposed merger with BGL.
The planned BTCS Inc. and Blockchain Global Ltd merger is still subject to execution of a definitive merger agreement. Shareholders in the two firm’s will also have to approve the merger.
“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. 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,” said Mr. Allen.
BTCS Inc. (OTCMKTS: BTCS) is planning to use its merger with Blockchain Global to expand its operations into Asian markets where blockchain technologies are eliciting strong demand. The merger also positions the company to be a diversified business model in the burgeoning blockchain space that is still in its infancy.
BTCS Stock Performance
The proposed merger is yet to have the desired impact on investor confidence in the stock. The stock is still trading in a downtrend after coming under pressure after rising to $0.40 in August. BTSC Inc. faces immediate support at the $0.12 a share mark, below which it could attract more selling pressure which could push it to $0.08 a share mark.
Separately, BTCS Inc. (OTCMKTS:BTCS) has confirmed the appointment of David M Garrity as an independent member of the board of directors. The GVA Research LLC CEO, joins the company with over 25 years’ experience in financial services industry, having also held a number of senior roles.
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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