Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF), the Web3 investor, has inked heads of terms with Indorse ahead of it increasing its stake in the Singapore-based blockchain development company from 10.156% to 24.91%.
The transaction, valued at £1.95 million, will be satisfied through the issuance of 65 million new Coinsilium shares, priced at 3p per share.
This acquisition is more than just a financial investment for Coinsilium; it aligns the two companies' commercial interests, particularly in the burgeoning field of Web3 technologies.
Chief executive Eddie Travia said he expects the deal to be "highly value accretive".
"Importantly, this transaction will also underpin our first major Web3 project collaboration with Indorse and pave the way for further potential collaboration opportunities between the two companies," he added.
"We also believe that the timing for this proposed transaction could not be better, given that the digital asset markets are now gaining significant traction, as we head into the Bitcoin ‘halving’ expected in spring 2024; a time which has historically catalysed previous bull phases in the value cycle.
"We are also confident that the Web3 sector is on the brink of a new cycle of rapid growth, boosted by a broader recognition of the benefits of blockchain technology, greater adoption of Web3 and artificial intelligence solutions and a somewhat clearer regulatory environment in the space.
"If our assumptions prove to be correct, Indorse is well positioned to reap the benefits over the forthcoming cycle; with the resulting demand for their services representing a key driver for future revenue growth."
Indorse's revenues for the last 12 months were around S$1.576 million, equivalent to around £941,150.