DGAP-News: DigiMax / Key word(s): Strategic Company Decision
DigiMax: DigiMax Makes USD USD5 Million Strategic Investment in Technology Disruptor, Kirobo, to Help Solve Decentralized
Finance (DeFi) Transaction Risks
2021-05-04 / 14:45
The issuer is solely responsible for the content of this announcement.
DigiMax Makes USD USD5 Million Strategic Investment in Technology Disruptor, Kirobo, to Help Solve Decentralized Finance
(DeFi) Transaction Risks
Crypto Pioneer Brock Pierce Joins Advisory Boards of Both Companies
- Kirobo, an Israeli based blockchain technology company, has developed solutions to some of the biggest problems in
crypto by giving users new capabilities, such as:
o ability to cancel a transfer if sent to a wrong address;
o transactions can be password protected prior to sending to ensure only the intended user can be the recipient;
o Kirobo provides all the benefits of centralized financial services in a fully decentralized format - the technology
enables large scale intermediaries such as credit card companies, and alternative payment systems, to offer their users
security that was not previously available.
- Chairman of the Bitcoin Foundation and co-founder of EOS Alliance, Blockchain Capital, Tether, and Mastercoin (first
ICO), Brock Pierce, has joined the Advisory Boards of both DigiMax and Kirobo where he will be providing strategic
guidance around the global launch of Kirobo's portfolio of products.
TORONTO, ON / ACCESSWIRE / May 4, 2021 / DigiCrypts Blockchain Solutions Inc. (DigiMax), the provider of Artificial
Intelligence and cryptocurrency technology solutions, has today announced a strategic USD USD5 million investment in
Kirobo, a leading cryptocurrency solutions developer. The investment will help Kirobo accelerate the release of
upcoming wealth management and crypto transaction security products, which are set to be integrated in DigiMax's AI
system over the course of 2021.
Tel Aviv based Kirobo is a blockchain technology company that provides state-of-the-art tools to crypto users and
companies, helping them gain better control of their funds. Kirobo offers a straightforward and user-friendly interface
that makes crypto management as simple and secure as online banking - something that could revolutionize the world of
DigiMax and Kirobo have also announced that crypto pioneer Brock Pierce has joined the Advisory Boards of both
companies where he will be providing strategic guidance around the global launch of Kirobo's portfolio of products.
Over a stellar career to date, Pierce has established credentials as one of the world's preeminent crypto thought
leaders, having co-founded EOS Alliance, Block.one, Blockchain Capital, Tether, and Mastercoin. Pierce currently serves
as Chairman of the Bitcoin Foundation.
Brock Pierce said, "I am excited to be joining the advisory boards of both DigiMax and Kirobo, and I am looking forward
to helping Kirobo introduce its unique and disruptive technology to the market."
The USD5 million strategic investment by DigiMax includes an agreement to explore the integration of DigiMax's AI
technology into Kirobo's solutions. The companies will also engage in marketing collaboration and the reselling of each
other's products to crypto exchanges.
Kirobo's first product - a breakthrough cryptocurrency transfer technology that allows users to "undo" or reverse a
crypto transfer sent in error - eliminates the myriad of human error risks inherent to the execution of crypto
transactions. A loss of money can occur when a transaction is sent to the wrong address, or when it is sent to an
address that does not support the receiving of the transaction, such as trying to send directly to a smart contract
address. This is exactly the problem that DeFi is trying to address - and Kirobo has the solution.
Kirobo has also developed a range of additional bespoke solutions tailored to crypto holders and merchants, which are
set for release over the course of Q2 and Q3. The company is in discussions with several crypto exchanges regarding the
planned integration of its solutions for later in 2021. Elements of Kirobo's new, soon to be revealed, solutions have
helped the company yield two highly revered grants from the Israel Innovation Authority.
The company's logic layer functions by providing a unique transaction code that must be entered by the recipient in
order to receive funds from the sender. Until the recipient has entered the correct code, the sender may retrieve the
funds at any time. Kirobo is currently helping large scale intermediaries, crypto exchanges and payments companies
offer their users unprecedented levels of transaction security.
Commenting on the announcement, Asaf Naim, Kirobo CEO said: "Today's announcement represents a firm seal of approval in
Kirobo's service offering from a highly renowned technology solutions provider. The DigiMax investment will help us
expedite the launch of new industry-leading solutions designed to help crypto participants, current and prospective, to
navigate transactions with a greater sense of confidence and clarity. By removing the fear from crypto transactions,
Kirobo will boost wider adoption levels as the enabler of risk-free crypto transactions. In the coming months, we look
forward to exploring the integration of DigiMax's AI technology into our solutions while announcing some very exciting
product launches that will advance the NFT and DeFi spheres."
Chris Carl, DigiMax CEO said: "We're proud to announce our strategic investment in Kirobo - a company that is set to
fundamentally change the DeFi landscape with its suite of timely, security-centric solutions. DigiMax is firmly aligned
with Kirobo's mission to broaden the accessibility of crypto through innovative technology tools built on the
principles of trust, transparency and security. To enable the wider crypto space to achieve mainstream adoption, the
substantial risk of human error, and machine coding error inadvertently creating massive losses on transactions must be
addressed. We are also excited to invite Mr. Brock Pierce onto our Advisory Board. The Kirobo technology has the
potential to change the way the world does commerce, and Mr. Pierce will be of huge assistance in helping us to
strategically introduce the technology on a global scale to provide secure transactions for individuals, and to provide
giga-scale solutions to credit card and similar cash transaction companies wishing to enable crypto-based commerce."
For more information on Kirobo's Retrievable Transfer feature, please visit Kirobo.io.
The Board of Directors has also approved the establishment of a Restricted Share Unit Plan. This plan defines the
maximum number of restricted shares allowed to be issued as 10% of the outstanding common shares as of the issue date.
The terms of the investment include DIGIMAX paying USUSD5 million for 15% of the fully diluted shares of Kirobo and
DigiMax will retain an Option for 8 weeks after closing to acquire an additional 15% in exchange for USUSD5 million of
DIGIMAX shares based on the lower of the 10-day VWAP of DigiMax shares at the time the Option is exercised, or 35 cents
per share. For each share exercised from the Option, DigiMax will receive a warrant with a term of 2-years, to purchase
from Kirobo, one-half of an additional share at price equal to a fully diluted valuation of USD USD50 million. In
connection to all of the above, DigiMax is awarding consultants 2.4 million Restricted Share Units valued at 25 cents
per unit and Options for 2.5 million shares with a strike price of 24 cents and a term of 2 years. These awards will be
placed in escrow and will be vested over the course of 12 months.
Kirobo has a single mission: to provide crypto users and companies with state-of-the-art tools to gain better control
of their funds. The company's final goal is to make blockchain as simple and secure as online banking. With support
from the Israel Innovation Authority, Kirobo has already created logic layers over the Bitcoin and Ethereum network,
and is rolling out advanced services and solutions on top of this layer. The company's logic layer functions by
providing a unique transaction code that must be entered by the recipient in order to receive funds from the sender.
Until the recipient has entered the correct code, the sender may retrieve the funds at any time.
About Brock Pierce
Brock Pierce is an entrepreneur and venture capitalist with an extensive track record of founding, advising and
investing in disruptive businesses. He's credited with pioneering the market for digital currency and has raised more
than USD5 billion USD for companies he has founded. Pierce is the Chairman of the Bitcoin Foundation and co-founder of
EOS, Blockchain Capital, Tether, and Mastercoin (the first-ever ICO). In 2017, Pierce co-founded Block.one, which
developed the EOS.IO software and sold over USD4 billion USD in tokens in the EOS crowdsale, making it the largest ICO in
history. He also co-founded Blockchain Capital in 2013, making it the first sector-focused venture fund to invest
solely in Blockchain technology companies. Pierce led the firm through the first ICO of a venture fund, which created
the first security token. Blockchain Capital has financed more than 70 projects.
DigiMax Global Solutions is a technology Company committed to unlocking the potential of disruptive technologies by
providing advanced financial, predictive, and cryptocurrency solutions across various verticals. DigiMax is an official
IBM Watson partner and the Company's engineering team has extensive experience in Machine Learning, Neural Language
Processing, Artificial Intelligence, Big Data and Cryptocurrency technology.
The Company's Projected Personality Interpreter (PPI) solution is currently used by various organizations including 16
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2021 08:45 ET (12:45 GMT)