TSX-V Symbol: HELX
VANCOUVER, BC, April 12, 2021 /CNW/ - Helix Applications Inc. (TSXV: HELX) (the "Company" or "Helix") continues to advance due diligence and progress exclusive negotiations with UK-based crypto-asset broker GlobalBlock Limited ("GlobalBlock"). The Company is pleased to announce that it has provided a £750,000 loan facility to GlobalBlock (the "Loan"), which should enable GlobalBlock to continue to expand its business.
Rufus Round, Helix CEO, said:
"Cryptocurrency markets have doubled to US$2 trillion so far in 2021 and this Loan should enable GlobalBlock to capitalize on this growth as it provides capital to targeted marketing and increased trading, and furthermore reflects the potential benefit to both Helix and GlobalBlock of a Potential Transaction."
David Thomas of GlobalBlock, added:
"This significant cash injection will allow us to accelerate growth through marketing exposure to the expanding UK interest in crypto-assets. Enhanced trading capacity along with our commitment to customer service will bolster and extend the lifetime value of our trading and investment community, while we seek to maximize return on investment."
As announced on March 8, 2021, Helix and GlobalBlock have entered into a non-binding Memorandum of Understanding to work together exclusively for a period of time to negotiate a potential business combination (a "Potential Transaction"). The Loan funds are to be used by GlobalBlock to expand its business, specifically by increasing their trading capacity (including through its recently launched dedicated electronic trading platform) and by undertaking a targeted marketing campaign in the UK.
GlobalBlock, has been operational since 2017 as a crypto-asset broker that provides retail and institutional investors with a service driven solution to trade crypto-assets. GlobalBlock was founded by established London, City-based entrepreneurs who teamed up to bring a better, more transparent and cost-efficient alternative for trading crypto-assets to the marketplace.
The Loan is unsecured, matures after one year and bears interest at a rate of 10% per annum. The Loan also contains a conversion feature whereby Helix has the option to convert the outstanding loan into a 10% equity interest of GlobalBlock, in certain circumstances, such as GlobalBlock not repaying the Loan on the maturity date, or in the event of a change of control of GlobalBlock not involving Helix.
Should the parties be able to come to definitive terms on, and complete, a Potential Transaction, it would combine GlobalBlock's business with Helix's commitment to digital platforms. GlobalBlock and Helix are at arm's length. Globalblock has obtained temporary registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) as a crypto-asset firm, pending the determination of its formal application by the Financial Conduct Authority in the United Kingdom.
Investors are cautioned that there can be no assurance that a Potential Transaction will be completed as proposed, or at all. Trading in the securities of the Company should be considered highly speculative.
Helix is a blockchain application and technologies developer, listed on the TSX Venture Exchange (TSX Venture: HELX).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information set out in this news release constitutes forward-looking statements or information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of among other things, the ability of the parties to complete due diligence to their satisfaction, the ability of the parties to come to definitive terms for a Potential Transaction, the ability of the parties to negotiate definitive documentation for a Potential Transaction, the ability to obtain regulatory approval (including TSX Venture Exchange approval) for a Potential Transaction, the continued and successful development of the businesses of each of Helix and GlobalBlock, the ability of GlobalBlock to obtain the applicable regulatory approvals (including permanent registration with the Financial Conduct Authority in the United Kingdom) to continue to conduct its business, and other information concerning the intentions, plans and future action of the Company and its technologies and products described herein. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's most recent management's discussion and analysis, a copy of which is filed on SEDAR at www.SEDAR.com, and readers are cautioned that the risk factors disclosed therein should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Helix Applications Inc.
View original content: http://www.newswire.ca/en/releases/archive/April2021/12/c2164.html