SecureTech Pays Up to $22M in Preferred Stock for Exclusive QSTAK Blockchain License
SCTH filed a M&A and Partnerships on light trading volume (0.3× avg).
Summary
SecureTech closed a perpetual, exclusive, worldwide license to QSTAK's blockchain and post-quantum technology, paying up to $22 million entirely in newly designated Series B Preferred Stock — $6 million earned at closing, the rest tied to an exchange launch and QSTAK Market hitting $7.5 million and $15 million in trailing-twelve-month gross revenue. It also formed QSTAK Market, a joint venture it controls through Piranha Blockchain at 57%, and bought a net 15% stake in QSTAK for $4.5 million in Series A Preferred. Management says Piranha Blockchain now has its first operating business, with initial consolidated revenue expected this quarter. The structure avoids cash outlay, but it layers more preferred stock on a company that already disclosed going-concern doubt, restated financials and a dismissed auditor in August, and closed a $350,000 first tranche of a $10 million convertible note at a 40% discount on October 21. The license and stake will be carried at cost or stated value pending valuation, so the balance-sheet benefit is an accounting entry until QSTAK Market actually books revenue.
At the time of this announcement, SCTH was trading at $20.10 on OTC in the Crypto Assets sector, with a market capitalization of approximately $343.6M. The 52-week trading range was $0.02 to $23.49. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.