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LiteLink Technologies signs LOI to complete equity investment in Canadian cryptocurrency exchange CatalX

LiteLink would issue 37.5 million shares and a C$500,000 cash payment to CatalX -- giving it more than 19% ownership 

LiteLink Technologies Inc. - LiteLink Technologies Inc signs Letter of Intent to complete an equity investment in Canada’s premier cryptocurrency exchange CatalX Exchange Inc
LiteLink CEO said CatalX has also experienced significant growth in its trading volumes, with average monthly volume hitting $1.37 million in December

LiteLink Technologies Inc (CSE:LLT) (OTCMKTS:LLNKF) (FRA:C0B:FF) announced Wednesday that it has signed a Letter of Intent (LOI) to complete an equity investment in CatalX Exchange Inc -- Canada's premier cryptocurrency exchange with over 40 Altcoins available for purchase on CatalX.io.

CatalX is a Canadian-based FINTRAC registered and compliant digital asset exchange platform that specializes in cryptocurrency trading, blockchain, and cybersecurity technology.  

It has developed a scalable and modularized platform with a trading engine that can scale to millions of users in real-time and cutting-edge cybersecurity system CyberSmoat, which is patent-pending, LiteLink said. 

READ: LiteLink Technologies buys 3030 IoT in bid to build a better waste bin sensor

Features of the CatalX platform include:

  • Fully featured exchange order book;
  • $0 deposit fees and immediate funding (post-KYC);
  • 0.15% trading fees;
  • Tightest buy and sell spreads in Canada under 0.1%; and
  • Lowest rates to buy BTC in Canada

In a statement, LiteLink said the proposed equity investment will be satisfied through the issuance of 37,500,000 common shares of LiteLink to CatalX and a cash payment to CatalX of C$500,000 -- which would result in LiteLink having ownership and control over 19% of the outstanding share capital of CatalX. 

In conjunction with the closing of the investment, LiteLink will also pay a finder's fee to an arm's length party of 1,875,000 common shares of LiteLink. All securities issued in connection with the investment in CatalX will be subject to a four-month-and-one-day statutory hold period.

"We are very excited to make this investment into CatalX, Canada's leading cryptocurrency exchange, and gaining a stake in the expanding cryptocurrency market," said LiteLink CEO Peter Green. "CatalX has had an outstanding year and continues to grow. In January 2021 alone, the company experienced 80% growth in new registrations quarter-over-quarter and has already clocked in $1.05 million in deposits in the first 21 days of January."

Green also noted that CatalX has also experienced significant growth in its trading volumes, with average monthly volume hitting $1.37 million in December 2020. In the first 3.5 weeks of January, the trading volume was sitting at $2.85 million and is projected to reach $5 million for January, a 590% increase from its October/November average of $725,000. In the last five days alone, the trading volume was $1.36 million.

Bitcoin, Ethereum on the move

"It isn't surprising when you look at the growth of the overall market. Bitcoin just closed out one of the biggest years in its history and is expected to continue rallying in 2021, thanks to a surge of new developments coming into the crypto space this year, including the launch of Facebook's bitcoin-inspired cryptocurrency and the US cryptocurrency regulations,” Green said.

"Despite recent price volatility, Bitcoin is still up over 290% in the last year and is expected to stay elevated, thanks to growing adoption of crypto among payment giants like PayPal and Square and rising interest among institutional investors."

He added: "At the same time, the world's second-largest cryptocurrency Ethereum has skyrocketed 300% over the last 12 months amid a flurry of interest in decentralized finance (DeFi) — using crypto technology to recreate traditional financial instruments such as loans and insurance with many DeFi projects built on top of the Ethereum network.”

LiteLink said it is at arms-length from CatalX. Completion of the investment in CatalX is subject to a number of conditions, including, but not limited to, completion of due diligence, negotiation of definitive documentation, and the receipt of any required regulatory approvals. The proposed investment is not expected to constitute a fundamental change for the company, nor is it expected to result in a change of control.

LiteLink also announced that it has engaged North Equities to provide and manage a comprehensive six-month digital media marketing campaign for the company for a total cost of $100,000. The company has also engaged Djordje Kovic for a digital media and marketing campaign for four months for a total cost of $45,000.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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