Global Blockchain Technologies Corp. (CSE:BLOC) unveiled plans to spin out its enterprise and exchange division and then buy the games publisher X2 Games, which was created by the 'Godfather' of the video game industry Nolan Bushnell, for a total of over $49 million.
Atari, which he founded more than 40 years ago, gave the world the first blockbuster video game.
He later spearheaded the Atari 2600 console and Nolan has also created Chuck E. Cheese - a popular pizza parlor and video game entertainment center-hybrid.
Blockchain and crypto
X2 Games integrates blockchain and cryptocurrency into its games, and with the industry poised to hit US$138 billion by the end of 2018. X2 Games says it's positioning itself to be a world leader in the next-generation of gaming.
Its managemnt also includes Zai Ortiz, who is president, co-founder and chief creative officer, who is a digital animator who created Iron Man's system holograms seen in the Marvel movies.
"In addition to picking up X2's projects, we have also brought on two true pioneers, with track records that are second to none, to run and continue growing the leading blockchain company in the media, entertainment, and gaming sectors," said Shidan Gouran, BLOC's president and CEO.
"All assets belonging to BLOC's exchange and enterprise divisions will be spun out into a separate company, to be run by BLOC's current management and operational team."
BLOC chairman Steve Nerayof added: "In less than a year, we have managed to develop three companies that are positioned to disrupt blockchain from the perspectives of mining, exchanges, and innovation.
"By segmenting our competencies and resources so that we can incorporate the strengths of partners such as X2 Games, we believe that this is conducive to realizing revenue earlier and being more profitable in the long term."
After the spin-out, the firm will merge its remaining media and entertainment investments and projects with those of X2 Games Corp.
Assets to be spun-out include those related to the development of the Laser blockchain and those related to the development of the Singularity digital asset, and those relating to the business and technology development of Stratus.
Under the terms of the acquisition, BLOC will issue over 330 million shares at a deemed price of $0.15 each, resulting in an aggregate purchase price of $49,577,931.
BLOC will also acquire from Global Blockchain Mining Corp (CSE:FORK) its 25% interest in DISCO, in exchange for $1.5 million of BLOC shares at a deemed price of $0.15 each.
DISCO's incumbent agreements provide extreme synergy to the gaming platform that is being developed.
Shares zipped up over 9% in Toronto to $0.115.