Toronto-based and the Canadian Securities Exchange-listed tech company Braingrid is refocusing its business in order to become an investment company, with the agreed acquisition of a majority stake in Cryptonews.com being among its first deals.
The provider of technological solutions for the agriculture industry plans to shut down or dispose of its current assets and become Tony G Co-Investment Holdings Ltd.
“The new name reflects the intention of the company to direct its investments towards companies in which [Antanas Guoga, a.k.a Tony G] has a significant equity interest and/or in which Tony G played a material role in developing the business,” Braingrid said in a press release.
Lithuania-based serial entrepreneur Antanas Guoga is also a founding shareholder of Cryptonews.com, launched in January 2018.
On November 30, Braingrid entered into a letter of intent with the shareholders of News 3.0 Limited, the operator of Cryptonews.com, pursuant to which the Canadian company shall purchase a 51% stake in Cryptonews.com for an aggregate purchase price of USD 3.6m, Braingrid said, adding that the completion of this deal is subject to certain conditions.
Guoga is contemplated to remain a substantial shareholder of this crypto news media company, which delivers content in English, French, Russian, German, Italian, Dutch, Persian (Farsi), Arabic, Chinese, and Turkish languages, and aims to expand its coverage to more local markets.
Also, Braingrid has entered into a letter of intent with a shareholder of Sportsclothes in order to acquire a 20% stake for EUR 1.4m in this Lithuanian online retailer of high-end basketball, leisure, football, and tennis shoes, clothing, and accessories.
“The board of directors of [Braingrid] believes that its network of business contacts, the depth of experience of its management team and its overall entrepreneurial approach will enable it to identify and capitalize upon investment opportunities as an investment issuer,” the company commented on its new strategy.
The company aims to focus on the blockchain technology, cryptocurrency, payment processing services, syndicated credit opportunities, online commerce, and online gambling industries, as well as ancillary industries thereto.
Meanwhile, Gediminas Klepackas, CEO of Cryptonews.com, will be also appointed as the CEO of Tony G Co-Investment Holdings Ltd.