Victory Square Technologies Inc (CSE:VST) (OTC:VSQTF) (FRA:6F6) announced Tuesday that it has signed an asset purchase agreement to acquire certain intellectual property (IP) assets of blockchain and cybersecurity company Aspen Technologies Inc, in a stock and debt forgiveness deal worth more than C$5.2 million.
Aspen is best known for developing an ecosystem of hardware, software and networking products to meet increased global consumer demand for new-age technology, the company said.
Through the acquisition, dated February 1, Victory Square has acquired key digital assets, including the following six anchor products currently deployed in the marketplace and/or in late-stage development:
- VPN Network: using patented mining technology to generate revenue;
- Decentralized database: data network crowd-sourcing computer storage to deliver a more secure, tamper-proof and scalable database;
- Digital asset exchange: to be licensed globally as an Exchange-as-a-Service; crowd-backed credit card underwritten by small lenders and investors;
- Online virtual currency platform: Bitcoin, Bitcoin cash, Ethereum and Litecoin; and
- WiFi Monitor: Plug and play privacy delivering faster browsing and safer internet on every device
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The deal furthers Victory Square’s commitment to leveraging the latest technology to deliver products and services for an open and more secure internet, the company said. Innovations that change the way the world manages information, analyzes data, purchases and consumes goods, and communicates across the globe are central to the company’s mission.
“These Web 3.0 assets represent a strategic addition to our growing portfolio of next-gen internet tech,” Victory Square CEO Shafin Diamond Tejani said in a statement. “Blockchain technology will have an overwhelming effect on the way consumers adopt and use everyday products in the future. Having already developed a suite of ground-breaking software and hardware solutions catering to consumers that will inevitably utilize blockchain products in the future, we saw an immediate opportunity to bring the team and technology in-house and assist in scaling their operations to serve a growing demand.”
Once the deal is closed, Victory Square plans to launch a new division focused on consumer security-related products, diversifying the current enterprise database and providing blockchain solutions.
“The last privacy and security wave was driven by business concerns; the next will be driven by consumers,” Tejani said. “People have become more aware of how open their data really is. With this strategic acquisition, we can service those needs. Aspen has a proven track record and expertise in producing highly secure consumer products, the addition of these technologies accelerates Victory Square’s growth strategy as we equip the company to meet both the enterprise and consumer privacy and decentralization requirements today and in the future."
In consideration for the assets, Victory Square will issue more than 4.6 million shares at a price of $0.80 per share. The company will also forgive a total of about C$1.6 million owed by Aspen to Victory Square. The deal is expected to close on roughly February 15, the company said.
“As we continue to pursue our vision of leading the next generation of technology entrepreneurs to build world-class products, we remain confident in our ability to scale our portfolio companies aggressively and maintain a healthy pipeline of acquisitions with a focus on increasing value for Victory Square shareholders,” Tejani added.
Vancouver-based Victory Square Technologies has a portfolio of global companies using artificial intelligence, augmented reality and blockchain to disrupt sectors as diverse as fintech, insurance, health and gaming.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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