- Cloud Nine Web3 Technologies (CNI) has entered into a strategic alliance agreement and share purchase agreement with Next Decentrum
- Next Decentrum has agreed to continue providing development services to Cloud Nine
- Cloud Nine will acquire a 19.7 per cent ownership interest in Next Decentrum by providing a total cash payment of $500,000 over a period of six months
- Cloud Nine is a technology platform company focused on incorporating emerging technologies
- Next Decentrum designs and builds dynamic, relevant, and human-led emerging tech education content and software
- Cloud Nine Web3 Technologies Inc. (CNI) opened trading at C$0.83 per share
Cloud Nine Web3 Technologies (CNI) has strengthened its existing tech development relationship with Next Decentrum Technologies Inc.
Next Decentrum is a private British Columbia corporation that designs and builds dynamic, relevant, and human-led emerging tech education content and software.
Cloud Nine and Next Decentrum have entered into a strategic alliance agreement (SAA), a share purchase agreement (SPA) and an investor rights agreement (IRA), each dated June 25, 2021.
Under the SAA, Next Decentrum has agreed to continue providing development services to Cloud Nine. Under the SPA, the company closed the first and second tranches of its strategic investment in Next Decentrum. The IRA grants Cloud Nine a right of first refusal to acquire Next Decentrum in the event of a potential change in control sale.
Under the terms and conditions of the SPA, Cloud Nine will acquire a 19.7 per cent ownership interest in Next Decentrum by providing a total cash payment of $500,000 in eight tranches over a period of six months, in exchange for the issuance of an aggregate of 2,673,792 units of Next Decentrum. Each unit is comprised of one common share of Next Decentrum and one non-transferable common share purchase warrant. Each warrant entitles Cloud Nine to acquire one additional common share for $0.2805 for a period of 24 months from the date of issuance. The final tranche is scheduled to be completed by December 31, 2021.
Cloud Nine has the right to increase its ownership in Next Decentrum to up to 28.2% by providing an additional investment of up to $750,000 in connection with the exercise of all 2,673,792 warrants granted under the SPA.
The first and second tranches involved Cloud Nine’s purchase of 534,758 units of Next Decentrum for a cash payment of $100,000.
“We are very excited about supporting the mission-driven team at Next Decentrum and expanding upon our existing relationship with their development team who has been assisting Cloud Nine with the development of our tech platform,” said Sefton Fincham, President of Cloud Nine.
“In particular, the market for non-fungible tokens (NFTs) and blockchain-powered innovations are growing exponentially and Next Decentrum certainly has the right team and vision to capitalize on the great opportunities available in those markets.”
Next Decentrum intends to use the investment proceeds for product development, market outreach and growing the Next Decentrum team. Next Decentrum is in the process of opening up early access to Momentable.ai, a digital collectables platform that empowers creators to create, manage, and promote NFT-based digital products, experiences, collections, and communities on the flow blockchain.
“Cloud Nine has been a great partner and this strategic investment is another step forward in our ongoing partnership,” said Hussein Hallak, CEO of Next Decentrum.
“We believe that with this strategic investment along with the experience and support the Cloud Nine team brings to the table, we can significantly increase our speed to market.”
More than $2 billion was spent on NFTs during the first quarter of 2021, representing an increase of about 2,100 per cent from Q4 2020, according to a new report from NonFungible.com.
Cloud Nine is a technology platform company focused on incorporating emerging technologies. The company’s mission is to power the launch and growth of future Web3 technologies focused on decentralization.
Next Decentrum designs and builds dynamic, relevant, and human-led emerging tech education content and software.
Cloud Nine Web3 Technologies Inc. (CNI) opened trading at C$0.83 per share.
