Blockmate Enters Binding LOI to Sell 85% of Midpoint Group to Klearium

VANCOUVER, British Columbia and LONDON, June 01, 2023 (GLOBE NEWSWIRE) -- Blockmate Ventures Inc (TSX.V: MATE) (OTCQB: MATEF) (FSE: 8MH1) (“Blockmate” or the “Company”), is pleased to announce that it has entered into a binding letter of intent (the “LOI”) with Klearium, Inc. (“Klearium”), an arms-length party.

The LOI contemplates that Klearium, or one of its nominees, will acquire an initial 85% interest in the subsidiaries of the Company involved in the processing of foreign currency transactions and transfers (collectively, the “Midpoint Group”). In consideration for this initial interest, Klearium will assume all liabilities and obligations associated with the operation of the Midpoint Group. Klearium has also agreed to provide a bridge loan of up to £35,000 to support operations of the Midpoint Group prior to closing. Following closing, Klearium will be granted an option to acquire the remaining 15% interest in the Midpoint Group at any time after the date that is two years following the Closing Date for a payment of US$250,000.

Klearium is a newly established entity in the USA promoted by global payment providers headquartered in Southern Africa and Asia. Klearium is a specialist cross-border payments and currency management business, offering unmatched compliance, liquidity and exchange services to its clients. Klearium therefore brings the Midpoint Group access to large volumes of flows, management expertise and the balance sheet to support strong growth.

Justin Rosenberg, CEO of Blockmate, said “we are thrilled to partner with Klearium and its supporters to grow the Midpoint group. This transaction will dramatically reduce Blockmate’s burn as well as provide Blockmate with opportunity for upside. Blockmate will then be able to better monetise our other assets and opportunities.”

David Kleiman, President of Klearium said “we are delighted to bring our global network and experience to the Midpoint group. The Midpoint team has developed a robust proposition for their clients over several years and we expect to leverage this extensively, driving news flows through Midpoint to better serve our combined client base and uphold safe, compliant and inclusive international trade and remittance business.”

Completion of the transaction contemplated by the LOI remains subject to a number of conditions, including finalization of due diligence, negotiation of definitive documentation and the receipt of any required regulatory approvals, including the approval of the TSX Venture Exchange. No finders’ fees or commissions are payable in connection with the transaction.