Blockmate Ventures Inc (TSX-V:MATE, OTCQB:MATEF) said it plans to focus its resources on its investee Hivello having completed its previously announced divestment of Midpoint, its cross-border payments and foreign exchange business.
The company said the Midpoint business was assigned to arms-length individual David Wong who will assume responsibility for all the liabilities and obligations associated with the business and the expenses associated with maintaining its operations.
The divesture is expected to reduce Blockmate’s annual net cash outflows by $500,000.
Additionally, the company said it is no longer proceeding with the acquisition of BESS Power Innovation Corporation.
The company said it did not pay any funds to BESS in connection with the proposed acquisition and it has assumed any ongoing liabilities or obligations as a result of terminating the agreement.
“Completion of the divestiture of the Midpoint business, and termination of the acquisition of BESS, will allow the company to focus its available resources on the continued development of Hivello as well as the evaluation of other prospective investment opportunities,” Blockmate said in a statement.
Blockmate holds a 67% stake in Hivello, a platform that provides users access to decentralized infrastructure.
Hivello recently completed financing rounds totalling $2.5 million, giving it an implied value of $6.7 million or 8.1 cents per Blockmate share.
Blockmate is a venture creator focused on building businesses related to cutting-edge sectors such as blockchain, climate and energy storage.