One of Canada’s largest investment funds is hoping to exploit the Ethereum environment through a new company, Ether Capital Corporation, a Toronto-based technology company mainly formed by the Canadian investment group OMERS.
The ultimate goal, the company said, is to become “the central hub of business and investment for the Ethereum environment”. To this end, the company will also acquire controlling stakes in companies by using Ethereum-based tokens.
The advisors for the new company include both traditional investors and representatives of startup blockchains.
Specifically, Liam Horne, member of that same “L4 Ventures” which is building Web3, a de-centralized network that removes intermediaries and encourages users to contribute, will act as an executive on the board of Ether Capital.
Joey Krug, director of Ether Capital and co-founder of Oracle’s de-centralized startup “Augur”, said Ethereum’s potential is largely untapped.
“The Ethereum network is just beginning to demonstrate its capacity, with more transactions and applications created almost every day; I believe it has the potential to disrupt many existing industries and am excited to advise Ether Capital for its position to capitalize on the most promising of these companies as a result of strategic acquisitions”.
Ether Capital and Movit Media Corp. entered into a binding agreement on March 22, 2018 under which the former would merge with a wholly owned subsidiary of the latter, while remaining a separate company, with ordinary shares listed on the Aequitas NEO Exchange under the symbol “ETHC”. Movit, in turn, would cancel its shares from the TSX Venture Exchange following the closing of the operation.
Immediately before the closing of the deal, the conditions for the release of Ether Capital’s private placement offer, previously announced for $18,000,000 worth of subscriptions at the price of $2.50 per subscription received, were met and the net proceeds of the offer (for an amount of approximately $42.2 million) were issued to the company.
Additionally, on the escrow version, each holder received a common stake in Ether Capital (“ECI Share”) for each subscription receipt they held.
At the end of the transaction, Ether Capital merged with the company’s wholly-owned subsidiary, with the acquired entity becoming 100% controlled by the company.
Immediately after that, Ether Capital started implementing its business plan, which initially involved investing most of the available funds in Ether, the original cryptographic resource of the Ethereum environment, until it invested 80–90% of the available capital.
In fact, on May 11, 2018 the company was pleased to announce that it completed its initial investment in Ether, purchasing a total of 37.6 million C$ (Canadian Dollars), equal to 42,587 Ether at an average cost of 882C$ (687$) per token.
This represents approximately 90% of the total available capital of the Company as per the deposit declaration available on SEDAR dated April 3, 2018.
Som Seif, Executive Director of Ether Capital said:
“We are excited to give shareholders the opportunity to invest in the first publicly traded company focused exclusively on the Ethereum environment and help drive the disruptive technologies that move the industry”.
Boris Wertz, Lead Independent Director of Ether Capital, said:
“The combination of industry-leading resources and expertise allows us to be at the forefront of this technology and take advantage of opportunities in the industry”.
The company will announce substantial changes and disclose its holdings in Ether on the “Investors” section of its website, which will be updated at least on every last day of each week.
The current market value of the company’s shareholdings represents a premium of 7% compared to the average cost basis, at 4PM on May 10, 2018, and includes trading costs and commissions.
Ether Capital now offers investors significant exposure to Ether, Ethereum’s native utility token.
Furthermore, the company continues to carry out the development and/or selective acquisition of other companies based on Ethereum and regularly assesses opportunities for this purpose.
This model offers investors a unique combination of direct exposure to Ether and the positive potential of direct investment in companies that are paving the way for disruptive technologies in industrial change. For more information, visit http://ethcap.co/
The staff at BlockchainTop News