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BLOCKStrain Technology (OTC:BKKSF) to acquire cannabis platform maker

Tony Zerucha

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BLOCKStrain Technology (TSXV:DNAX) (OTC:BKKSF) has entered into a letter of intent to acquire Spark Digital Technologies, producers of the IgnitePro platform exclusively built for the cannabis industry. They will acquire all of the issued and outstanding securities of Spark and the business of Spark in exchange for 15 million common shares valued ay 26 cents per share which will be provided to Spark shareholders. The parties have set a deadline to complete the deal of Apr. 29.

Highlights of the IgnitePro software platform include:

  • Secure infrastructure powered by Microsoft Azure;
  • Robust APIs and web services for integration;
  • Inventory management and IgnitePro Smart Serialization;
  • Document management, regulation and compliance reporting;
  • Mobile companion app for tracking and monitoring; and
  • Sophisticated machine learning and AI capability.

The IgnitePro technology is connected globally and will be able to travel with cannabis plants and products as they move from cultivation to distribution. IgnitePro will produce reports, store documentation and track transports, and, when combined with BLOCKStrain, is expected to ensure regulation and compliance standards are being met and protected on the blockchain.

The acquisition is a non-arm’s length transaction as Robert Galarza, the CEO of BLOCKStrain, is also a director and a controlling shareholder of Spark, and Tommy Stephenson, the CTO of BLOCKStrain, is also a director and controlling shareholder of Spark. Upon closing of the acquisition, it is expected the former shareholders of Spark will hold approximately 15.8 percent of BLOCKStrain’s outstanding common shares.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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