DGAP-News: Stockholm IT Ventures AB: STOCKHOLM IT VENTURES CANCELS ACQUISITION OF WYRIFY BLOCKCHAIN PAYMENT TECHNOLOGY
08.02.2018 (www.4investors.de) -
DGAP-News: Stockholm IT Ventures AB / Key word(s): Statement
Stockholm IT Ventures AB: STOCKHOLM IT VENTURES CANCELS ACQUISITION OF WYRIFY BLOCKCHAIN PAYMENT TECHNOLOGY
08.02.2018 / 12:37
The issuer is solely responsible for the content of this announcement.
STOCKHOLM IT VENTURES CANCELS ACQUISITION OF WYRIFY BLOCKCHAIN PAYMENT TECHNOLOGY
STOCKHOLM, SWEDEN (8 February, 2018) - Stockholm IT Ventures AB (ISIN SE 0006027546 - Frankfurt Stock Exchange: SVAB), a Swedish technology company specialising in clean and efficient low-cost energy cryptocurrency mining, today announced it has decided to terminate the company's 2017 acquisition of the Wyrify blockchain payment technology which was an all shares deal from a consortium of stakeholders led by NXChain Inc. The decision was made after the completion of Stockholm IT Ventures (SITV) due diligence into the terms of the agreement, including assets and proprietary technology material to the deal were not evident or non-existent and also following recent statements on the Wyrify blog as well recently received information on people connected to Wyrify.
In December 2017 and January 2018 at the company's EGM's, a new board of directors has been put in place to lead Stockholm IT Ventures rapid progression and leadership into green energy technology for cryptocurrency. After further review of this and other deals from the predecessors, the new board found no other option than to terminate the Wyrify deal, in the best interest of the shareholders of SITV. Besides Wyrify, the other deals announced prior to the new board are all subject to either renegotiation or are in the process of being cancelled by SITV and in co-operation with the counterparties as part of a larger process to change the direction of the company's business model.
"We are in the process of transforming SITV into a company focused on green cryptocurrency mining and investments into companies active in that field. The deals entered into by the former board of directors will all be evaluated not only from that perspective, but also on how they were formulated to identify any misconduct," said Roger Tamraz, Chairman of the Board, Stockholm IT Ventures. "It simply cannot be in the shareholders interest to buy companies at inaccurate valuations and then in turn have to inject additional funds to get the businesses going," Mr. Tamraz continued.
No assets of Wyrify were ever handed over or transferred to Stockholm IT Ventures. SITV had previously offered the Wyrify holders an alternative solution to do the deal, upon conclusion of the due diligence. However, Wyrify never responded to the communication, and Wyrify's recent public communication regarding this situation is a breach of the signed confidentiality agreements with Stockholm IT Ventures, leaving no alternative than to terminate the agreement.
"Our expansion into clean energy cryptocurrency mining is an exciting shift forward for Stockholm IT Ventures and its shareholders," said Anthony Norman, CEO, Stockholm IT Ventures. "Our recent strategic technology partnership with the Norwegian based company Cryptotech AS is a sign of a new and sound path for the future, with a focus on positive cash flow where SITV shareholders values are protected."
About Stockholm IT Ventures AB
Stockholm IT Ventures AB is a Swedish public company listed on the Frankfurt Stock Exchange since 2014 under the ticker symbol SVAB. The company focuses on clean and efficient low-cost energy cryptocurrency mining and production, and in blockchain related technology. All mining activities shall use clean and sustainable energy from hydro power stations in Northern Europe, requiring up to 80% less energy compared to ordinary mining for Bitcoin. The Stockholm IT Ventures stock represents a green investment in cryptocurrency technology. For more information, visit www.stockholmit.co. You can also find them on Facebook, Twitter and LinkedIn.
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08.02.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Stockholm IT Ventures AB
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