BIG Blockchain Intelligence Group Inc. (CSE: BIGG) (OTC Pink: BBKCF) (WKN: A2JSKG) (“BIG” or the “Company”) wishes to provide an update on its proposed acquisition of the Netcoins operations.
On May 27, 2019, the Company announced that it had entered into a definitive share purchase agreement (the “Agreement”) with Netcoins Holdings Inc. (CSE: NETC) (the “NETC”) whereby BIG will acquire all of the issued and outstanding shares of its three subsidiary companies – Netcoins Inc., NTC Holdings Corp., and NTC Holdings USA Corp. (collectively, “Netcoins”) by issuing 37,500,000 common shares (the “Payment Shares”) to NETC at a deemed price of $0.08 per Payment Share (the “Transaction”).
The business of BIG and Netcoins are highly complementary, and the Transaction is expected to create value for shareholders in both the near and long-term. It offers BIG an opportunity to step into the world of cryptocurrency trading, in an immediately operational capacity. Netcoins has over 171,000 retail locations globally, a self-serve crypto purchase portal and an institutional over-the-counter (OTC) trading desk. Natural synergies include the integration of BIG’s sophisticated compliance and analytics services into Netcoin’s offerings, which should serve to propel its retail and institutional trading platforms in particular.
As a ground-floor entrant into the cryptocurrency space, BIG’s aggregated knowledge and experience accumulated over several turbulent years has led to the determination that the time is right for consolidation within the cryptocurrency market, and the belief that additional opportunities will open up for a larger, stronger and more diversified combined company.
BIG’s focus will continue to be on capturing and building out a strong position in the vast market opportunity offered by the emerging cryptocurrency sector. With wider adoption of cryptocurrency underway, the groundswell movement to introduce and implement regulation and controls to safeguard investors will continue to grow – spurred on by the entry of global corporations into the sector. Recent news of Facebook partnering with other industry giants to launch Libra, a digital coin intended to simplify online payments and purchases, and of banking behemoth JP Morgan’s impending release of the JPM coin, will likely have the effect of driving forward regulation while simultaneously adding legitimacy to the sector.
As it looks to fulfill its mandate of bringing cryptocurrency mainstream through it’s “compliance first” approach, BIG will seek to reduce transactional risk across a broader base – one that includes regulators, compliance experts, law enforcement, institutional traders, and the public at large.
The cryptocurrency market is evolving quickly, with Bitcoin continuing to lead the way. After the highs of late 2017 and depths of the 2018 crypto winter, BIG anticipates this next phase will see a more mature Bitcoin that has stronger fundamentals with growth attributable to the entry of financial institutions into the sector.
BIG has long believed in the enduring nature of Bitcoin. Prior to the most recent price escalation, the Company added to its BTC holdings, more than doubling its investment. It now holds 56.59 BTC at an average cost of USD$5,070 (CAD$6,819) per coin. At today’s BTC price of roughly USD$12,500 (CAD$16,500), its BTC holdings are valued at USD$707,000 (CAD$933,700), with unrealized gains of approximately USD$420,000 (CAD$548,000).
Completion of the Transaction remains subject to certain closing conditions and obtaining all necessary approvals, including the approval of the Canadian Securities Exchange (the “CSE”) and the approval of NETC shareholders and other conditions which are customary for transactions of this nature.
Closing of the proposed Transaction is now expected to be on or about July 31, 2019.
On behalf of the Board,
Netcoins is in the business of developing software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor through brokerage services.
About BIG Blockchain Intelligence Group Inc.
BIG Blockchain Intelligence Group Inc. (BIG) brings security and accountability to the new era of cryptocurrency. BIG has developed from the ground up a Blockchain-agnostic search and analytics engine, QLUETM, enabling Law Enforcement, RegTech, Regulators and Government Agencies to visually trace, track and monitor cryptocurrency transactions at a forensic level. Our commercial product, BitRank Verified®, offers a “risk score” for cryptocurrency, enabling RegTech, banks, ATMs, exchanges, and retailers to meet traditional regulatory/compliance requirements. Our Forensic Services Division brings our team of investigative experts into action for cryptocurrency investigations that require in-depth expertise and experience, either in conjunction with or supplemental to our user-friendly search, risk-scoring and data analytics tools. Based on industry demand, we created our Cryptocurrency Training Academy (www.CryptoInvestigatorTraining.com) to help Law Enforcement, the Financial Sector and Regulators learn how to bring security and accountability to cryptocurrency; our Cryptocurrency Investigator Certification Course is a one-stop solution to understanding the world of cryptocurrency, how to reduce associated risk, and investigate cryptocurrency crime.
About BitRank Verified®
BIG developed BitRank Verified® to be the industry gold standard in ranking and verifying cryptocurrency transactions. BitRank Verified® offers the financial world a simple risk score, enabling consumer-facing bank tellers, exchanges, eCommerce sites and retailers to know whether a proposed transaction is safe to accept, questionable, or should be denied. BitRank Verified® and its API are custom tailored to provide the RegTech sector with a reliable tool for meeting their regulatory requirements while mitigating the risk of money laundering or other criminal activities.
QLUE™ (Qualitative Law Enforcement Unified Edge) enables Law Enforcement, RegTech, Regulators and Government Agencies to literally “follow the virtual money”. QLUE™ incorporates advanced techniques and unique search algorithms to detect suspicious activity within cryptocurrency transactions (Bitcoin, Ethereum), enabling investigators to quickly and visually trace, track and monitor transactions in their fight against terrorist financing, human trafficking, drug trafficking, weapons trafficking, child pornography, corruption, bribery, money laundering, and other cyber crimes.
About the Crypto Fusion Center
BIG created the Crypto Fusion Center (CFC) to serve as a community resource dedicated to fighting the criminal use of cryptocurrencies. The CFC’s mission is to maintain and promote the legitimacy of cryptocurrencies while protecting the market as a whole by identifying and isolating criminal events as they occur. The CFC enables entities in all sectors to notify major participating exchanges, financial institutions, and law enforcement agencies in a timely manner when cryptocurrency thefts occur. The CFC is a direct result of BIG’s greater mission of bringing cryptocurrencies mainstream through social responsibility.
About Our Expert Training
We offer custom on-site and 24/7 online training, enabling Law Enforcement, the Financial Sector and Regulators to understand cryptocurrency risk and successfully investigate suspicious activity. Our in-person, on-site training solutions are designed to fit our clients’ scheduling, location and learning needs. Through our online Cryptocurrency Training Academy (www.CryptoInvestigatorTraining.com), clients can take our Cryptocurrency Investigator Certification Course to earn their Certified Cryptocurrency Investigator credential from BIG to validate their new knowledge.
About Our Forensic Services Division
Our Forensic Services Division provides Law Enforcement, Financial institutions and Regulators with expert support to help trace, track and monitor illicit activity involving cryptocurrencies. Our services range from quick and simple due diligence case reviews, to providing in-depth forensic support for ongoing investigations, and providing expert witness testimony from unbiased third-party investigators.