360 Blockchain Inc (CSE:CODE) is set to acquire 60% of Silicon Valley based SV Crypto Lab (SV).
It has inked a non-binding letter of intent, the group said, and if 360 and SV shareholders can agree terms, SV CryptoLab founder and chief executive James Cerna will lead the advancement of the SV CryptoLab business model, establishing the 360 presence with its previously announced office in San Carlos, California.
"SV CryptoLab is founded on the principle that blockchain technology is at the same stage of development as the internet was in 1994,” said Cerna.
"With the resources that 360 brings to the mix, we can advance our objectives and nurture the blockchain and cryptocurrency projects that will define our next decade," he added.
While no definitive documentation has yet been signed, terms of the proposed acquisition include that 360 would acquire 60%, with the option to purchase the remaining 40%.
The purchase price to be paid to SV shareholders is US$ $250,000 and 5,000,000 shares of 360.
360’s CryptoLab will lead the development of blockchain technologies for the company with its access to engineering talent enabling the monetization of its R&D efforts.
"This is a significant milestone for 360,” said Brian Keane, 360 director.
“SV is the first of our proposed acquisitions. SV brings with it a strong business plan, outstanding leadership and vision highlighted by Jim Cerna; plus a vibrant presence in the heart of Silicon Valley,” he said.
Cerna is a successful company leader with 27 years’ experience in the software and energy industries.
From 2014 to 2017 he was CEO and CFO of SauceLabs, the world’s largest automated testing cloud company based in San Francisco.
Before that, Cerna was the President of Armada Oil in Dallas.
In addition, Lieutenant Cerna serves as a senior officer and pilot with the Civil Air Patrol, U.S. Air Force Auxiliary, Squadron 192, California Wing.