GoverMedia Plus Canada, a Canadian holding firm that has a fully owned Russian internet and cryptocurrency subsidiary, has signed a non-binding Letter of Intent (LOI) with European cryptocurrency exchange EXMO as it’s eyeing its acquisition.
According to a recently published press release, the LOI gives GoverMedia the chance to negotiate the transaction exclusively with EXMO for a period of 180 days, without fearing any outside interference.
Once the transaction is completed, it claims, the combined entity will keep on operating EXMO’s platform. The LOI saw both parties agree to “use their best efforts to formulate a structure for the proposed transaction that is envisioned to comply with all necessary legal and regulatory requirement.”
GoverMedia’s CEO Roland J. Bopp was quoted as saying he is pleased with the announcement. Bopp touted that upon the completion of the deal the company will have over 2 million active users and will be provided with “an excellent platform to further increase revenue and improve operating results in European, North American and Asian markets.”
Sergey Zhdanov, the CEO of EXMO, stated:
At EXMO, we see this combination as a perfect opportunity to strengthen our team and raise our influence on the universal cryptocurrency market. We are very excited about this partnership because it provides us deeper insights for decision-making purposes and brings our clients best infrastructure and maximum security.
Late last year, EXMO’s managing director was kidnapped in a case that made headlines throughout the world. He was subsequently released after a $1 million ransom was paid in BTC.
The move comes amid a wave of crypto exchange acquisitions. As CryptoGlobe covered, Poloniex was acquired by Goldman Sachs-backed fintech firm Circle earlier this year for around $400 million. Last month, Bitstamp was acquired by European investment firm NXMH, after its platform was reportedly valued at $60 million.
Bithumb, a once leading South Korean cryptocurrency exchange that got hacked earlier this year, sold 38% of its stake to Singapore-based Blockchain Consortium group BK Global. Shortly after, it claimed the title of the world’s leading crypto exchange, although a look at its platform seems to show wash trading is going on within its order books.