In an important development for IOT Group Ltd’s (ASX:IOT) subsidiary, International Blockchain Advisory Corp Pty Ltd (IBAC), has been appointed advisor for a Blockchain project to develop the Royalti Blockchain Group’s (RBG) Blockchain Mining Services.
Highlighting the significance of this development, RBG is one of the world’s first fully automated digital currency mines, guided by Artificial Intelligence to deliver substantial energy savings.
RBG is prominent in its own right being Bitfury’s – a globally significant and leading Blockchain technology company – authorised Australian integrator and approved partner.
Under the Binding Contract Terms, IBAC will receive 5 million tokens of the Blockchain Project with a proposed value of AUD$1.00 per unit. IOT can book the deal for $5 million for this financial year and sell down the token in Q4 if required. The deal will generate cash inflows.
Of course the deal remains early stage and investors should seek professional financial advice if considering IOT for their portfolio.
As RBG will initially be listing on an Australian Coin Exchange, the currency is determined as Australian dollars.
IBAC will receive all 5 million units as ERC20 Tokens on the Ethereum platform within the next 14 days.
This issue of tokens represents the consideration for IBAC’s provision of services under the contract.
Subject to working capital requirements and prevailing investment market conditions, IOT will trade the RBG tokens on the relevant exchange (once listed) to realise the cash value.
Investors should note that the basis for the token valuation is, in fact, unknown at this stage and is only notional. Valuation will only be known once the tokens are planned to be listed on an exchange in the December quarter.
IOT’s role purely advisory
This isn’t IOT’s first dealings with RBG.
In May, IOT signed a conditional binding Terms Sheet with Royalti Blockchain, BitFury’s Authorised Australian Integrator and approved partner, for the supply 20 megawatts of power over a ten-year term at an estimated cost of 11 cents per kwh.
IBAC’s role is to advise and introduce qualified technical management to complete the RBG Blockchain Mining Project and has signed a binding contract with RBG to advise on the best Blockchain protocol solutions for the RBG Initial Coin Offering (ICO).
Importantly, IOT’s and IBAC’s role is limited to advising RBG for the Blockchain solution, and IOT will not itself directly, indirectly or jointly undertake the ICO.
IBAC will not be participating in a digital currency other than in receiving tokens as compensation for services.
The post IOT signs $5 million advisory deal appeared first on Statii News.
source http://news.statii.co.uk/iot-signs-5-million-advisory-deal/
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