Graph Blockchain Acquires NFT Platform New World
Graph Blockchain (CSE: GBLC) has entered the world of non-fungible tokens, or NFT’s. The company this morning announced that it has closed on the acquisition of New World, whom is focused on the emerging space.
The simple premise of an NFT is that buyers receive exclusive rights to digital art, with the NFT living on the blockchain to enable the verification of ownership. New World specifically provides a “distribution canvas” to creators to enable them to sell their digital art via their platform. As per the website, the platform is still in a beta phase.
Under the terms of the arrangement, New World was acquired for a total figure of $6.0 million, which was settled in the form of units of the company. 46.2 million units of Graph Blockchain were issued in connection with the purchase, at a price of $0.13 per unit. Each unit contains one common share and one common share purchase warrant, with warrants being valid for a period of two years from the date of issuance, with an exercise price of $0.18 per share.
“Graph’s acquisition of New World gives us exposure to the quality art-focused NFT market, one of the fastest growing segments of the art world. NFT’s provide a new platform for artists to digitally showcase their work.”
Paul Haber, CEO
Performance milestones are also applicable in the transaction, which are to be paid with units, based on minimum net revenues in 2021 and 2022 being met, as well as the firm entering contracts with up to 100 artists by the end of 2021. Total potential earnouts have a value of roughly $15.0 million based on units being priced at $0.13 per each.
Graph Blockchain last traded at $0.06 on the CSE.
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