Industrial Internet-of-Things company Carl Data Solutions Inc. (OTCPK:CDTAF)(CSE:CRL) said Wednesday that it intends to develop its blockchain and financial technology (fintech) data services portfolio through acquisition, agreeing to buy Connected Fintech Inc., a privately-held provider of cryptocurrency mining, support and hosting services, in an all-stock deal. Per the letter of intent disclosed today, Carl Data is going to pay 883,010 shares of its stock, valued at C$0.192 per share for a total purchase price of C$169,578.
Maybe the headline should read "Buying Connected Fintech Again" or maybe this is the next step to a first LOI declaring the plans to merge. Whatever the case, today's news is subsequent to a December 7, 2017 press release of a letter of intent for the Vancouver-based company to acquire Connected, with the two companies teaming up for "the joint development of a first of its kind IIoT blockchain technology for integration into the Carl Data’s machine learning, predictive analytics and operational metrics for cryptocurrency mining hardware." In January, Carl said it signed a services agreement with Connected that includes "the building of cryptocurrency mining facility; the development predictive analytics and operational metrics for cryptocurrency mining; and the development of breakthrough machine to machine (M2M) transactional capabilities."
Today marked the latest in the series of agreements that is expected to catapult Carl Data into the rapidly emerging blockchain space via the Connected Fintech relationship.
In addition to industry know-how from the staff at Connected, Carl Data will bring under its umbrella the company's cryptocurrency servers (computers used for mining digital currencies), associated hardware, data center facilities and hosting contracts. No details were provided on hardware, facilities or contracts, perhaps due to the agreement still being in the early stages. It was only stated that Connected has offices in both Vancouver and on Wall Street in New York City.
It was not disclosed whether or not the latest LOI was binding. Management left it with the companies agreeing to use best efforts to structure a deal and, as is customary, the LOI would be superseded by a definitive agreement.
Shares of CDTAF have been stuck in a downtrend since December, sinking from a high of 47 cents to a recent low of 13 cents. Albeit on low volume, shares are up 3% to 14.37 cents in Wednesday trading as of about 12:30 PM EDT. CSE-listed shares, which tend to be a little bit more active, are up 8.1% to 20 cents so far on the day.
