DigiMax Takes 15% Stake In Kirobo For US$5.0 Million
DigiMax Global (CSE: DIGI) this morning revealed that it has made a US$5.0 million strategic investment into Kirobo, an Israel-based cryptocurrency solutions developer. The investment is reportedly being made in advance of the launch of several features which will now be incorporated into DigiMax’s AI system.
Kirobo reportedly has developed solutions to certain issues associated with crypto transactions, which include the ability to cancel a transfer if funds are sent to the wrong address, the password protection of transactions, and certain benefits of centralized finance. Chief among those benefits are added security layers that can be added by intermediaries such as credit card companies.
Under the terms of the investment, DigiMax has taken a 15% stake in Kirobo in exchange for US$5.0 million, with DigiMax having the option to double its investment and stake in the company for US$5.0 million in the form of common shares. If the option is exercise, DigiMax is to receive a half warrant for an additional share, for each share purchased that is valid for a period of two years. Warrants are to contain an exercise price pegged at a fully diluted valuation of $50 million for Kirobo.
The investment is expected to accelerate the launch of wealth management and crypto transaction securities products, which DigiMax expects to implement on its AI system.
DigiMax Global last traded at $0.23 on the CSE.
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