Coronado Resources has entered into a binding share purchase agreement to acquire 100% of the outstanding common shares of Skyrun Technology, a Vancouver-based company developing a digital currency brokerage platform that will officially launch in Canada later this year.
Image: Coronado to acquire Skyrun Technology. Photo: courtesy of rawpixel / Unsplash.
Trading in Coronado’s shares will remain halted pending final review and approval by the TSX Venture Exchange (TSX-V) and final closing of the Skyrun acquisition.
Concurrently with the closing of the Skyrun acquisition, the two principals of Skyrun, Wayne Chen and Rod Hsu, will join Coronado’s executive team as CEO and COO respectively.
Both individuals are early adopters in online payment solutions, cryptocurrency and the blockchain sector. Please see the description and background of Coronado’s proposed executive leadership team and board of directors below.
Skyrun’s digital currency brokerage platform will utilize a network of payment instruments while ensuring regulatory compliance through partnered financial institutions and payment providers.
The platform will facilitate an intuitive experience, allowing users to instantly buy digital currencies.
In 2019, Skyrun plans to expand the business internationally into additional jurisdictions where blockchain and digital currencies are highly sought after for their unique properties including; ease of transaction, transferability and payment, anonymity, security and secure long-term store-of-value.
Under the terms of the share purchase agreement, Coronado will issue up to 660,000 common shares in exchange for 100% of the issued and outstanding shares of Skyrun, which is equal to approximately 10% of Coronado’s current issued and outstanding shares.
The shares of Coronado will be released to the principals of Skyrun, Wayne Chen and Rod Tsu, when certain milestones are reached that are linked directly to the development, operations and overall success of Coronado.
The completion of the Skyrun acquisition is subject to several conditions, including:
Receipt of TSX-V approval, including a change of Coronado’s business and a reactivation from the NEX board to the TSX-V;
Compliance by the parties to the share purchase agreement with all covenants and agreements in such agreement; and
Other conditions precedent set forth in the share purchase agreement.
Coronado is currently classified as a “Utility” issuer with no operations. The proposed Skyrun acquisition will constitute a “change of business” for the purposes of TSX-V Policy 5.2 and is subject to review and acceptance by the TSX-V.
The Skyrun acquisition is not a related party transaction within the meaning of TSX-V Policy 5.9, which incorporates Multilateral Instrument 61-101, so a valuation and shareholder approval are not required.
Coronado intends to complete a non-brokered private placement of approximately 1,000,000 common shares concurrent with the closing of the Skyrun acquisition at a price to be determined. The proceeds from this private placement will be used primarily to further advance the development of Coronado’s new business.
Source: Company Press Release