On March 6, BLOCKStrain Technology Corp (TSX:V.DNAX, Forum) announced it had entered into a non-binding letter of intent to acquire Spark Digital Technologies Inc.
Robert Galarza, CEO of BLOCKStrain, spoke with Stockhouse about the
benefits of the proposed transaction:
Q: Why is acquiring Spark Digital Technologies in the best interest of BLOCKStrain?
A: This transaction has always been a part of BLOCKStrain’s long-term
strategy. It was originally disclosed in our filing statement when we went
public and has been part of our comprehensive plan to bolster our
technology through intelligent tracking, inventory and facility management
capabilities, sophisticated machine learning and artificial intelligence, and a
secure “smart hub” infrastructure in order to provide a true comprehensive
offering to the industry.
This deal will give BLOCKStrain full access to Spark’s proprietary
IgnitePro™ software platform which was designed specifically for the
cannabis industry. IgnitePro™ has significant capabilities designed to
support efficient production and distribution of cannabis that complement
and enhance our current offering and will allow us to bring value to
additional areas of need in the industry.
Capitalizing on the synergies created by combining this technology with the
blockchain-secured functionality of our core platform will enable us to offer
our clients – licensed producers, craft growers, cannabis product
developers and other industry participants – a more robust product offering.
We’re firmly committed to ensuring not only cannabis and cannabis
products have the highest level of certification and verification, but also that
our clients and partners have the best tools available to maximize efficiency
and profitability. This acquisition is aligned with that mission.
Q: What are the financial details of the transaction?
A: The letter of intent we signed with Spark Digital Technologies is non-
binding, meaning its terms and conditions are subject to change. We are in
the exploratory stages of this transaction now, with both parties working in
good faith to finalize a definitive agreement by April 29.
Acquiring Spark has long been part of BLOCKStrain’s strategic plan to
fortify its offerings, as outlined in our filing statements. Both management
and the Board of Directors sincerely believe the synergies that this
combination will create will further enhance our offering, create loyalty with
current clients, and further attract new clientele as our platform gains the
reputation as the industry gold-standard for product management, quality
and efficiency.
We believe acquiring Spark is in the best long-term interest of our
shareholders as it positions our enhanced software platform as the best-in-
class product for producers and distributors in the cannabis industry. Any
final financial terms will be based on what we believe to be the most
prudent course of action and in the best interest of shareholders.
Q: You’ve signed two major partners since the start of the year.
What’s next for BLOCKStrain.
A: The advancement of the registration program with WeedMD, and our
initial engagement of Harvest One, are reflective of the traction and
momentum our software is gaining. By incorporating our strain authenticity
and tracking platform—and more importantly our Master Genome Strain
and Clone Registration program—these licensed producers will be able to
confirm that strains are exactly what they claim to be, providing consumers
with real-time transparency and confidence
This is just the start. As more companies in the cannabis and growing
hemp industry recognize the strong value in protecting their genetics, their
intellectual property and ultimately their brand: we believe our platform will
become the industry benchmark, helping us effectively scale with the
market and grow revenue.
Consider our agreement with NXT Water, also signed this year (2019),
designed to integrate our technology in the launch of its hemp-derived
AKESO Functional Fitness Water. In an effort to make the CBD data
accessible (and understandable) for the end user, BLOCKStrain will
provide a QR code on the side of every bottle of AKESO so that customers
can scan and receive data about what they’re about to consume in real-
time.
We also announced our DTC eligibility this year. This is another milestone
for BLOCKStrain as it increases accessibility for U.S. investors, making it
significantly easier for them to purchase our stock and participate in our
growth story.
All of these strides forward are critical building blocks in our drive to
generate sustainable growth and value for shareholders. We are working
diligently to continue to execute on strategic initiatives that will continue to
grow our market presence and impact.
Read more about BLOCKStrain on Stockhouse HERE
