GoverMedia Plus Canada Corp., a Canadian holding company with a fully owned Russian internet and cryptocurrency subsidiary, is looking to acquire EXMO, one of Europe’s largest cryptocurrency exchanges.
The Canada-based company announced on Tuesday that it has signed a Letter of Intent (LOI) with the exchange, giving GoverMedia the chance to negotiate the transaction exclusively, without fear of outside interference.
Commenting on the announcement, Roland Bopp, CEO of GoverMedia, said: “I am very pleased to announce the intended business combination with EXMO one of the largest European cryptocurrency exchanges.
“This is a further step in the Company’s publicly announced strategic partnership. After the successful completion of the business combination, the company will have over 2.0 million active users and provides an excellent platform to further increase revenue and improve operating results in European, North American and Asian markets.”
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Negotiation period to acquire EXMO lasts for 180 days
The negotiation period will last up to 180 days. Once, and if, the transaction is completed, GoverMedia will acquire EXMO, and the combined entity will continue to carry on the business of EXMO, the statement said.
Under the LOI, both companies have agreed to try their best to formulate a structure for the acquisition that will comply with all applicable legal and regulatory requirements. As can be expected, the statement also highlights the parties will aim for the agreement to be as cost-effective as possible.
Once an agreement is reached, both EXMO and GoverMedia expect the final structure of the transaction to be set out in a definitive agreement between the two companies. This will include representations, warranties, and covenants that are typical of acquisitions.
“At EXMO, we see this combination as a perfect opportunity to strengthen our team and raise our influence on the universal cryptocurrency market,” Sergey Zhdanov, the CEO of EXMO, added.
“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. This combination will assist us to achieve one of our main targets: becoming one of the most credible and reliable businesses on the cryptomarket”.