BitGold Acquires in $51.9M Deal

BitGold and GoldMoney unite to offer better payment services for customers.

Photo: BitGold founders Roy Sebag and Josh Crumb/BitGold

Photo: BitGold founders Roy Sebag and Josh Crumb/BitGold

BitGold Inc. has always considered making gold suitable for digital payments to be its mission. Now it steps further. It has announced conclusion of Acquisition Agreement with GoldMoney Network Limited. The matter of deal is 11,169,794 shares BitGold will issue for the right to own intellectual property of GoldMoney. The value of the transaction is CAD 51.9 million at the rate of BitGold’s CAD 4.65 as of May 21. The term of acquisition is 60 days.

Goldmoney was founded in 2001 by James and Geoff Turk. The company deals with precious metal transactions. It offers customers a possibility to purchase and store gold, silver, platinum and palladium. Their aim is to convince people of the reliability of gold and silver and to show its obvious benefits.

GoldMetal is actually a registered business name for Net Transactions Limited. According to the deal terms BitGold will own all the shares of three affiliates of GoldMetal – Net Transactions Limited, Net-Gold Services Limited and Net Transactions (Jersey) Limited.

BitGold is a Canada-based company owning branches in Toronto and Milan. It offers customers a reliable vault account to buy and store gold using digital payment methods. Its platform comes up with convenient solutions of dealing with fully allocated and safely vaulted gold. Customers own all the physical gold stored in vaults which are in turn managed by The Brink’s Company.

BitGold and GoldMoney are going to hold a conference tomorrow, on May 26th. It is supposed to shed light on the basic issues of Agreement. Potential benefits of the cooperation you can read here.

The parties appreciate achievements of each other. Roy Sebag, BitGold’s CEO, is enthusiastic about future joint work: “We are thrilled by the potential of this BitGold and GoldMoney combination, two companies with shared values and a common vision and purpose. You will not find a precious metals asset manager with more integrity than the one built by Geoff and James Turk and the GoldMoney team. With the technology of the BitGold platform we can expand the GoldMoney legacy of trust, security, and a client centric purpose to new markets, growing from a much stronger base and benefiting all stakeholders. Combining the first global e-marketplace for gold with the latest and most innovative, we instantly become the world’s largest and most active bullion money service.”

James Turk, founder of GoldMoney, echoes: “The combination of BitGold and GoldMoney has the potential to create significant value for the clients and shareholder of both companies”.

The best thing about this cooperation is that it’s not partners themselves who benefit from the cooperation but also customers. They will now be able to trade their gold for the currency of their choice —including bitcoin by the way — and have proceeds wired directly to their bank account.

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