- Valdor (VTI) has entered into a binding letter of intent to acquire Layer 2 Ventures
- Layer 2 Ventures gives retail and institutional investors direct exposure to layer 2 blockchain technology
- Valdor will pay C$5,000,000 for the acquisition through the issuance of common shares
- The LOI contemplates the execution of a definitive agreement within 60 days
- Valdor Technology designs and manufactures fiber optic equipment
- Valdor (VTI) is unchanged trading at $0.31 per share
Valdor (VTI) has entered into a binding letter of intent to acquire Layer 2 Ventures.
Layer 2 Ventures is the first dedicated layer 2 scaling company giving retail and institutional investors direct exposure to one of the most exciting and fastest-growing segments of the blockchain. Layer 2 leverages cryptographic technology, like roll-ups and zero-knowledge proofs, to process transactions in bulk beside or above the main chain, resulting in a 100x performance increase for just a fraction of the gas fees.
Valdor will issue 16,666,667 common shares priced at C$0.30 per share representing aggregate consideration of $5,000,000.
In connection with the transaction, and at its sole discretion, Valdor may conduct a private placement financing for gross proceeds of up to $5,000,000.
Each unit would be comprised of one common share and one warrant.
Each warrant would be exercisable for an additional common share priced at $0.75 for two years after the date of issuance.
In addition, Valdor will make a line of credit loan to Layer 2 for up to $250,000. The loan will be secured, bear interest at 10 per cent per annum and will be repayable within 30 days of termination of the LOI or definitive agreement, for any reason.
The LOI contemplates the execution of a definitive agreement within 60 days.
Valdor Technology designs and manufactures fibre optic equipment.
Valdor (VTI) is unchanged trading at $0.31 per share as of 10:07 am ET.