Midpoint Completes Acquisition of Blockchain World

LONDON, March 15, 2022 (GLOBE NEWSWIRE) — Midpoint Holdings Ltd. (TSXV: MPT) (Frankfurt: 8MH1) (“Midpoint” or the “Company”) is pleased to announce that it has completed the acquisition (the “Transaction”) of Blockchain World Ltd. (“BWL”) as announced on December 14, 2021.

BWL is a company focused on building innovative, consumer-focused blockchain-based products. BWL owns the premium domain names Blockchain.eu (Europe), Blockchain.com.au (Australia), and Hivello.com; all are expected to launch in 2022.

In consideration for the Transaction, Midpoint has issued 10,000,000 common shares (the “Consideration Shares”) to the existing shareholders of BWL (collectively, the “Vendors”). The Consideration Shares are subject to restrictions on resale until September 14, 2022.

In addition to the Consideration Shares, the Vendors will also be entitled to receive the following additional common shares (the “Performance Shares”) subject to the satisfaction of the following performance milestones:

(a) 5,000,000 Performance Shares will be issuable to the Vendors upon the official launch of the website domain “blockchain.com.au” (or such earlier date as mutually agreed upon by the parties), in the event such official launch occurs within 9 months of the closing date of the Transaction;

(b) 5,000,000 Performance Shares will be issuable to the Vendors upon the official launch of the website domain “blockchain.eu” (or such earlier date as mutually agreed upon by the parties), in the event such official launch occurs within 9 months of the closing date of the Transaction;

(c) 5,000,000 Performance Shares will be issuable to the Vendors upon the achievement by BWL of CTV or AUM of no less than $20,000,000 within 24 months of the official launch; and

(d) 5,000,000 Performance Shares will be issuable to the Vendors upon the achievement by BWL of CTV or AUM of no less than $50,000,000 within 30 months of the occurrence of the official launch.

“CTV” means the cumulative gross transaction value of all digital currency transactions processed through website domains maintained by BWL, for a given period, calculated in $CAD.

“AUM” means the total amount of digital currency held by the custodial wallet of all customers of BWL, as calculated on the last business day of any particular month based on the average market price of the applicable currency during such day.

BWL was founded by Domenic Carosa as a B2C (“Business to Consumer”) blockchain-focused product organization. Domenic is a highly regarded entrepreneur and early adopter of blockchain technology. Notably, he is the Founder and Chairman of TSXV listed Banxa Holdings Inc. and cryptocurrency fund Apollo Capital. Through Domenic’s stewardship, Banxa has achieved significant transactional revenue growth alongside increased partnership roll-outs.

Board Update

As announced December 14, 2021, Domenic Carosa has joined the Midpoint board of directors as a non-executive director.

Commenting on the Transaction, Midpoint President Derek Ivany stated, “We are very pleased to have consummated this Transaction with Domenic and his innovative company. It has been one of our stated corporate goals to augment our consumer-facing business with applicable blockchain technology. As such, we believe that this Transaction represents a very compelling opportunity to take Midpoint into the digital asset space in order to assist in building shareholder value in 2022 and beyond. The addition of Domenic Carosa will further bolster Midpoint’s board with highly relevant blockchain and cryptocurrency experience that will be vital as the Company moves forward in this arena. Midpoint’s ability to tap into Domenic’s vast network within the digital asset sector will be of tremendous value as the Company assesses further product expansion and partnership opportunities.”

Domenic Carosa commented, “I’m looking forward to working with the Midpoint team in order to expand their presence in the blockchain space. I see significant opportunities to leverage their consumer-facing foreign exchange platform that has been the backbone of their business. One of my first priorities will be to help build the internal blockchain capabilities and then oversee the execution of the strategy.”

According to Markets and Markets, from 2020 to 2025 the global blockchain market size is expected to grow at a CAGR of 67.3%, reaching $39.7 billion by 2025. Further, according to Statista, the financial sector currently accounts for more than 60% of blockchain’s worldwide market value. In line with these potentially accelerating market trends, Midpoint believes that there is an opportunity to capture synergies between its existing foreign exchange platform and the blockchain business of BWL. Midpoint’s core competency in the consumer-facing foreign exchange space lends itself to expansion via broadened scope and potential product offerings within the digital asset sector.

About Midpoint

Headquartered in London, UK, Midpoint is an FCA authorized payments institutions specializing in cross-border payments and foreign exchange. SMEs, overseas professionals, property owners, foreign students, individuals, and anyone involved in international payments use Midpoint for transparent, multi-party, multi-currency services. Midpoint currently handles transactions in 27 currencies with the ability to collect and transfer across over 200 countries. This highly secure platform provides customers with the most cost-effective F.X. at the Midpoint of the interbank buy/sell rate, therefore removing the spread as well as hidden costs and fees.

Midpoint Holdings Limited is listed on the TSX Venture Exchange and cross-listed on the Frankfurt Stock Exchange.

For information on Midpoint, please visit: http://www.midpoint.com.

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Forward-looking information

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