BIGG Digital Assets (CSE: BIGG) evidently still sees value in the metaverse space, with the company this morning indicating it intends to acquire the remaining interest in TerraZero Technologies that it does not already own.
TerraZero operates in the Web 3/Metaverse industry, developing projects for major brands for what it refers to as “immersive and interactive ecommerce.” The company has worked with names such as Warner Music, Miller Lite, and PwC, enabling them to establish a presence in the metaverse.
TerraZero is also in the process of developing what it refers to as its Intraverse Technology, which is slated for a Q1 2024 launch. The tech is expected to enable credit card payments, allow for KYC and data analytics, and the exchanging of fiat to crypto via BIGG’s other digital assets.
“TerraZero will strengthen our balance sheet, add new revenue streams, and perhaps most importantly provide a blue sky opportunity via their Intraverse product for mindshare and marketshare in the metaverse,” commented BIGG CEO Mark Binns.
The company generated revenue of $1.5 million in the first half of 2023, however BIGG already appears to be reducing expectations for growth in the second half, stating that in the second half of the year it will focus on the development of its Intraverse tech.
Despite the little revenue generated by the entity, BIGG has agreed to acquire the remaining portion of TerraZero that it does not already own for a figure of $20 million, which is to be paid via the issuance of 62 million common shares. Prior to the transaction, BIGG held 30% of common shares of TerraZero, along with 34% of the preferred shares outstanding.
Voluntary escrow agreements have been entered into by 72% of the common shares of TerraZero, along with 100% of the preferred shares, with such agreements to remain in place for between four and 24 months.
The transaction remains subject to shareholder approval by TerraZero investors. The transaction is currently slated to close in September 2023.
BIGG Digital last traded at $0.27 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
