DLTx ASA : Exit from Filecoin and the blockchain segment through the sale of assets

by Arthur · April 8, 2023

(Oslo, 8 April 2023) DLTx ASA ("DLTx", OSE: DLTX) announces that the Company and
its wholly owned subsidiaries have today signed an agreement to sell all foreign
operating subsidiaries, including its interest in Filecoin cloud storage
partnerships Storify and Helix. The sale is a strategic move in response to the
blockchain market downturn, the divisions mounting liabilities and the
significant investment required to achieve profitability for the Filecoin
division. The sale is an important part of the company's effort to improve its
financial position and facilitate new strategic initiatives.

The Filecoin division faced a challenging 2022 with the downturn in the
cryptocurrency and blockchain markets. The business model of funding discrete
special purpose vehicles to finance the growth and development of the division
proved difficult given the reigning market conditions. As a result, the division
has struggled to reach critical size, resulting in growing liabilities and
increasing financial pressure on the parent company. The Filecoin division
requires significant investment to reach profitability, a commitment that DLTx
has determined is not viable under the current market conditions.

The buyer is a company controlled by James Haft (chairman of DLTx), David
Johnston (Chief Strategy Officer) and Jacob Farber (who has previously been
engaged by DLTx). While the agreement does not meet relevant thresholds for
being subjected to the general meeting, DLTx has taken appropriate measures in
the negotiations to safeguard the interests of the group. As consideration under
the agreement the buyer will assume liability for approx. USD 25 million of
outstanding debt with the entities sold in the transaction. In addition, the
sale includes approx. USD 3 million of seller's credit to be settled by the
buyer within 31 December 2028. The signing of the agreement and the closing of
the transaction occurred simultaneously.

"The sale of the Company's operational blockchain subsidiaries represents a
shift in our strategy and is in line with our goal to improve our financial
position. Moving forward our immediate focus will be the values of our
investment portfolio, and we will act opportunistically to further improve our
financial situation," says Roger Lund, Managing Director of DLTx.

The transaction will significantly reduce the Company's overall debt burden and
give DLTx a better foundation to adapt to the changing market conditions. DLTx
will move forward with a streamlined organizational structure pursuing new
opportunities.

"It was a difficult but necessary decision to ensure operational viability for
DLTx ASA," added Roger Lund. "I believe this sets DLTx up to follow its
long-term strategy of finding new business combinations with companies focusing
on disruptive and sustainable business models. While this endeavor was expected
to be a result of the agreement with Blockchain Moon Acquisition Corp. ("BMAC"),
the Company will now pursue these strategic initiatives under different
circumstances." 

As part of the agreement DLTx ASA will change its name and will call for an
extraordinary general meeting ("EGM") in the near future. 

Following the transaction, the DLTx balance sheet will consist of its Web3
investment portfolio, the outstanding receivable towards the buyer, and
outstanding receivables towards Ambershaw Metallics and Eardley Settlement Ltd,
connected to the company's legacy investment in Ambershaw Metallics.


This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to MAR article 17 and section 5-12 of the Norwegian Securities Trading
Act. This stock exchange release was published by Roger Lund, acting Managing
Director and VP Strategy, on 8 April 2023 at 22.26 CEST.


For further information, please contact: 
Roger Lund, acting Managing Director, +47 95 16 11 13 or [email protected]

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