Spondoolies-Tech, a transaction verification server manufacturer, received a key approval from the Israeli Office of Chief Scientist (OCS) to merge with blockchain technology company BTCS.
According to a press release sent to CoinReport, this is the first of two key approvals needed for the merger to go through. The second requires the Israeli Tax Authority to confirm deferred payments of applicable Israeli taxes related to the merger.
“Our merger with Spondoolies marks a major milestone for us and sets the stage for rapid revenue acceleration in the years ahead.,” said Charles Allen, chief executive officer of BTCS. “BTCS produced year-over-year revenue growth of 1,225% in 2015, while cash used in operations was reduced by 25%. To combine this strong performance with Spondoolies’ industry leading technology, which generated impressive revenues for its first and second generation products, we’ll be positioned to create a new global leader in the blockchain sector.”
“The blockchain is set to radically change the future of transaction-based industries,” stated Guy Corem, chief executive officer of Spondoolies. “BTCS has positioned itself at the core of this disruptive transformation, and we are excited to combine forces to capitalize on the immense opportunities that lie ahead. The OCS approval places us one important step closer to completing the merger.”
The approval comes after BTCS invested $750,000 in Spondoolies-Tech, which affected shareholder ownership in the combined company. BTCS shareholders will own between 61.2% to 69.7%, while Spondoolies-Tech shareholders will own between 30.3% to 38.8%. Final percentages will be determined before the finalization of the deal.
Image via press release