BIGG to Acquire Web3 Company TerraZero in $20M Deal
BIGG Digital Assets plans to acquire TerraZero Technologies Inc. for $20 million, a metaverse company with a 161% growth in Q1 2023. TerraZero will create a subsidiary for BIGG, with TerraZero's CEO serving a 12-month term.
According to GlobeNewswire, BIGG Digital Assets Inc. (BIGG) has formalized its intent to acquire all outstanding shares of TerraZero Technologies Inc. not already under its umbrella. The transaction, with an estimated valuation of approximately $20 million, is set to be facilitated through an issuance of around 62 million common shares of BIGG.
TerraZero is not just another name in the Web3/Metaverse arena. With a clientele that reads like a who's who of the industry, including stalwarts such as Miller Lite, PwC, and Warner Records, this acquisition is a testament to BIGG's vision to diversify and deepen its footprint in the rapidly evolving metaverse landscape. This move is not just about expansion; it's a strategic alignment that promises to offer BIGG's shareholders a diversified portfolio with enhanced reach into the metaverse business.
Diving deeper into the financials, TerraZero's performance in the first half of 2023 has been nothing short of impressive. The company reported a robust revenue of around $1.5M, marking a significant 161% growth year-over-year. But TerraZero isn't resting on its laurels. The company has charted out an ambitious roadmap that focuses on the development and launch of its Intraverse technology ecosystem by Q1 2024.
The Intraverse platform, as envisioned by TerraZero, is poised to redefine the realms of immersive e-commerce and the upcoming 3D Internet. Beyond its core functionalities, the platform is gearing up to seamlessly integrate features such as credit card payments. Furthermore, in a move that underscores the synergy between the two companies, the platform will soon incorporate KYC, AML, and data analytics capabilities from Blockchain Intelligence Group. This integration, coupled with Netcoins' fiat to crypto exchange features, promises to elevate the platform's offerings.
In terms of the specifics of the acquisition, once the dust settles, TerraZero is slated to operate as a wholly-owned subsidiary of BIGG. The share exchange dynamics have been worked out to an approximate rate of 1.69 BIGG Shares for each TerraZero share. This pegs the offer's value at roughly $0.54 per TerraZero Share, a figure derived from the average trading price of BIGG Shares on the CSE as of August 22, 2023.
Post-acquisition, the shareholder landscape will undergo a significant shift. Existing BIGG and TerraZero shareholders will find themselves holding about 80% and 20% stakes in BIGG, respectively. Adding to the post-deal developments, TerraZero's CEO, Dan Reitzik, is set for a 12-month tenure as a non-voting observer on BIGG's board.
In conclusion, this acquisition, backed by endorsements from both BIGG's and TerraZero's boards, promises to be a game-changer in the crypto and metaverse sectors, setting the stage for exciting developments in the near future.
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