VANCOUVER, CANADA: Cover Technologies Inc. (COVE) has closed the acquisition of Flurbo, a decentralized finance (DeFi) blockchain technology software application from Nifty Technologies for $1.45 million in shares plus $3.5 million worth of performance shares.
Flurbo is designed to facilitate tracking, trading, transacting, and borrowing against digital assets, in a secured and transparent manner.
The acquisition of Flurbo was previously announced on May 19, 2021 and August 19, 2021.
Cover views the asset acquisition of this blockchain technology as a complement to its current business of developing a technology to process magnesium from tailings in an environmentally and sustainable manner.
The acquisition of Flurbo will provide the Company with the technology to vertically integrate the various levels of the resource sector from initial production to processing, and then up the supply chain, logistics, and finance.
Cover’s acquisition of Flurbo is an opportunity to aggregate all participants and transactions at all levels in the resources industry by providing one trusted and transparent digital solution. Flurbo will provide resource producers the ability to capture mineral production statistics to help streamline logistics and financing, and facilitate provenance tracking.
The Flurbo solution may be used by a wide variety of participants including producers, purchasers, financial institutions, financiers, streamers, logistics companies, and assayers.
Cover issued a total of 5.5 million common shares in the capital of the company to the vendor, Nifty Technologies Inc.. The parties agreed to a deemed price of $0.265 per Consideration Share at the time the parties entered into the Letter of Intent on May 19, 2021, which deemed price was equal to the Company’s last private placement on February 12, 2021.
In the event that after 12 months from closing, Flurbo achieves a positive EBITDA within 24 months from closing of the transaction, Cover will issue an additional number of shares equal to $3.5 million at the time of such achievement.
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