Augusta Subsidiary Paragon Blockchain to Acquire Shares of FinX Solutions Inc.
August 20, 2018 (Source) — Augusta Industries Inc. (TSXV: AAO) (the “Corporation”) is pleased to announce that its wholly owned subsidiary, Paragon Blockchain Inc. (“Paragon”), has entered into a non-binding letter of intent dated August 16, 2018 (the “LOI”) with FinX Solutions Inc. (“FinX”), an arm’s length party to the Corporation.
Pursuant to the LOI, Paragon will acquire an aggregate of 500,000 units (the “FinX Units”) of FinX in exchange for the issuance of an aggregate of 1,250,000 common shares (the “Consideration Shares”) in the capital of Paragon at a deemed price of $0.20 per Consideration Share. Each FinX Unit is comprised of one (1) common share in the capital of FinX (“FinX Share”) and one (1) common share purchase warrant (“FinX Warrant”). Each FinX Warrant will entitle Paragon to acquire one (1) FinX share at an exercise price of $0.50 per FinX Share until close of business on August 30, 2021.
The acquisition of the FinX Units and the issuance of the Consideration Shares is subject to a number of conditions, including, but not limited to, the Corporation completing its due diligence investigation of FinX, a share exchange agreement being entered into between FinX, Paragon and the Corporation and the receipt of regulatory approvals.
FinX’s mission is to create a system where payment processing will be instant, secure, easily convertible between currencies and crytocurrencies. FinX’s system will provide payment processors with the ability to expand service offerings for their users like lending crytocurrencies across borders at the click of a button.
With its FNX Healthcare Applications, a blockchain platform for patient centric healthcare, FinX intends to tackle the many challenges in dealing with and sharing patient health information. The complex nature of the data, security and privacy laws and the sheer volume of data that needs to be secure, compliant, properly formatted and safe have proven to contribute to the problems the industry faces today.
FinX believes with the evolution of blockchain technology, many of these issues can be resolved for an easy and efficient implementation of the challenges facing patient data. Complementary to FinX’s blockchain solution, the company has also considered other use cases that can easily be implemented such as preventative healthcare, insurance claim, management, and tokenization for payments and proper verification and validation of care. Using blockchain-integrated solution for the healthcare industry enables several key benefits:
About the Corporation
Through its wholly owned subsidiaries, Marcon International Inc. (“Marcon”), Paragon Blockchain and Fox-Tex Canada Inc. (“Fox-Tek”), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Saudi Arabia-Sabic Services, Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, & Qatar Petrochemical.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the O&G market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid shutdowns, & accidents and leaks.
Paragon has the potential to unlock substantial new opportunities capable of impacting the business of Marcon. Specifically, Marcon seeks to create an eco-system in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with A.I. data mining tools to proactively drive the process. Blockchain technology is of critical importance to FOX-TEK as well particularly the expansion of its’ non-intrusive technology in the oil & gas industry, whose clients include many of the biggest companies in the world.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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