Business
Blockchain Venture Capital Inc. Announces the Closing of Strategic Acquisition of Controlling Interest in LuminusFX Corporation
Blockchain Venture Capital Inc. Announces the Closing of Strategic Acquisition of Controlling Interest in LuminusFX
About this update from Blockchain Venture Capital Inc
[{"type":"text","content":"(Comments on Recent Market Activity)Toronto, Ontario--(Newsfile Corp. - July 4, 2025) - Blockchain Venture Capital Inc. (CSE: BVCI) (\"BVCI\" or the \"Company\") is pleased to announce the closing of its previously announced acquisition of a 51% controlling interest in LuminusFX Corporation (\"LuminusFX\") pursuant to a Share Purchase Agreement dated June 1, 2025 (the \"LuminusFX Agreement\"). The Company initially announced the proposed transaction in a press release dated June 3rd, 2025.No Material Change in Market ActivityAt the request of CIRO, Blockchain Venture Capital Inc. wishes to confirm that the Company's management is unaware of any material change in the Company's operations that would account for the recent increase in market activity.Details of the Acquisition and the Acquired EntityLuminusFX Corporation was incorporated under the laws of Ontario in mid-April 2025. The acquisition consideration for the 51% controlling interest in LuminusFX totals an aggregate of 1,530,000 common shares of BVCI, representing a total transaction value of approximately CAD $765,000, based on a deemed price of CAD $0.50 per BVCI common share. This comprises an initial issuance of 765,000 common shares, with an equal number of 765,000 common shares subject to an earn-out provision contingent upon LuminusFX generating at least CAD $120,000 in net profit for BVCI within a six-month period following the closing of the merger.Basis of Valuation and Operating History of the BusinessBVCI's valuation of this acquisition is primarily based on the extensive experience and proven track record of LuminusFX's founders, Xue Ru Bao and Thomas Kwok, and the underlying financial advisory services business that they have operated for over a decade in the foreign currency industry. Our comprehensive due diligence included a thorough review of the founders' financial advisory experience, their solid industry network, and an examination of bank transaction records from the founders' previous business activities prior to the incorporation of LuminusFX, covering the period from January to May 2025. These records provided a clear demonstration of their capabilities and supported the valuation of the business.The Company's valuation of the entire business, taking into account the founders' track record and future business projections, was approximately CAD $1...