BLOK Technologies Signs MOU with Visionary Private Equity Group to Form Proposed Joint Venture for the Development of Blockchain Applications for the Real Estate Industry
VANCOUVER, British Columbia, Sept. 19, 2018 (GLOBE NEWSWIRE) -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE: BLK) (FRANKFURT: 2AD) is pleased to announce that Visionary Private Equity Group (“VPEG”) and the Company have entered into a non-binding Memorandum of Understanding (“MOU”) to form a joint venture for the development of technology for the real estate industry.
Under the terms of the MOU, which is subject to the parties agreeing upon definitive terms, BLOK Tech will license its Greenstream blockchain technology platform in exchange for a US $500,000 licensing fee and a 25% equity position in a to-be formed joint venture company (“NewCo”). The MOU outlines the terms of the proposed strategic partnership between VPEG and BLOK Tech relating to the development of new technology enterprises, the first of which is expected to be with a real estate company partner.
“This is a significant milestone for BLOK Technologies,” said Rob Dawson, CEO of BLOK Tech. “Our business model has always been to develop and deploy our technology into multiple industries, and this partnership with VPEG is expected to move that strategy forward in a significant way. We are very enthusiastic about working with VPEG as a partner in the future. Their complimentary technology and access to capital provides a great fit for us as we build new technology companies we will own equity in. The real estate sector with its complicated structure, numerous stakeholders and fragmented data sets, is an ideal environment to deploy the technologies we are building. We see tremendous potential to improve transparency, trust, transactions and compliance through the commercialization of our technology.”
Under the terms of the non-binding MOU between BLOK Tech and VPEG the parties have agreed to the following:
- BLOK Tech and VPEG will establish a new joint venture company for the licensing, aggregation and build out of technologies for the real estate sector;
- The Parties will seek to jointly identify and secure a 3rd strategic partner from the real estate industry, who is expected to provide US $5M in funding for NewCo.
- BLOK Tech will grant NewCo an exclusive and perpetual license of the Greenstream technology platform for the real estate sector for a licensing fee of US $500,000 payable to BLOK upon the securing of NewCo financing.
- VPEG will grant NewCo an exclusive and perpetual license of the Visionary Technology stack (including NFC, RFID, and Augmented Reality and Virtual Reality technologies) for the real estate sector for a licensing fee of US $500,000 payable to VPEG upon the securing of NewCo financing.
- BLOK Tech and VPEG will be equal partners in NewCo and will jointly bring in other equity partners.
“As a private equity firm with portfolio holdings in a variety of emerging technology companies, we see significant potential for the integration and expansion of BLOK Tech’s technology into other industries,” said Ron Zamber, Chairman and Senior Managing Director of Visionary Private Equity Group. “We have been impressed with BLOK Tech's Management and Engineering Teams as well as their recent accomplishments. We have identified a compelling use case for the real estate industry from which we can leverage our deep relationships in this sector, and provide added value through deployment of our robust technology stack. We look forward to building a successful joint venture together.”
Visionary Private Equity Group (VPEG) invests in early stage, high growth companies that have strong management teams and the potential for significant upside. VPEG is a Missouri limited partnership and has portfolio companies engaged in various industries, including Energy and Natural Resources, Innovative and Disruptive Technology and Entertainment and Media. The VPEG team consists of highly respected professionals with a unique blend of private equity, investment banking, legal, medical, oil & gas, internet technology and operating experience that play an active role ensuring that our portfolio companies have a sound operating and capital strategy. For more information about VPEG, please visit https://visionaryprivateequitygroup.com
About BLOK Technologies Inc.
BLOK Technologies Inc. is a public company that invests in and develops emerging companies in the blockchain technology sector. The Company’s approach is to provide capital, technology and management expertise to the companies it develops. BLOK Tech’s Greenstream technology platform is designed to effectively manage value transfer, supply chain integrity and identity verification in complex and highly regulated industries. This scalable and adaptable platform is being developed on the Hyperledger technology stack and with the support of Oracle Cloud infrastructure. BLOK Tech continues to grow its business into adjacent industries and emerging technologies. The Company systematically identifies early-stage technologies with potential to disrupt and innovate within their industry and invests the necessary resources to ensure the success of their projects.
For additional information regarding BLOK Technologies and other corporate information, please visit the Company's website at BLOKTECHINC.COM
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
For further information, please contact:
James Hyland, B.Comm.
Vice President Corporate Development, Director
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.