Israeli OCS approves merger of Spondoolies-Tech and Bitcoin firm BTCS

Israel’s Office of Chief Scientist (OCS) has approved the proposed merger of blochain technology focused group BTCS Inc (OTCMKTS:BTCS) and Israeli transaction verification server manufacturer Spondoolies-Tech Ltd.

The companies receive this regulatory nod of consent about five months after they sealed a definitive merger agreement.

The OCS approval is one of two key conditions for completing the merger. The second key closing condition is confirmation from the Israeli Tax Authority regarding deferred payment of applicable Israeli taxes related to the transaction.

Charles Allen, Chief Executive Officer of BTCS, commented,

“Our merger with Spondoolies marks a major milestone for us and sets the stage for rapid revenue acceleration in the years ahead. BTCS produced year-over-year revenue growth of 1,225% in 2015, while cash used in operations was reduced by 25%. To combine this strong performance with Spondoolies’ industry leading technology, which generated impressive revenues for its first and second generation products, we’ll be positioned to create a new global leader in the blockchain sector.”

Guy Corem, Chief Executive Officer of Spondoolies, said,

“The blockchain is set to radically change the future of transaction-based industries. BTCS has positioned itself at the core of this disruptive transformation, and we are excited to combine forces to capitalize on the immense opportunities that lie ahead. The OCS approval places us one important step closer to completing the merger.”

After giving effect to BTCS’s recent $750,000 investment in Spondoolies, BTCS shareholders will own a 69.7% to 61.2% stake in the combined company, and Spondoolies shareholders will own 30.3% to 38.8% of the combined company, based on the number of common and preferred securities outstanding immediately following the merger. The ownership range is a function of BTCS’ liquidation preference associated with its existing $2.25 million investment in Spondoolies.

The final ownership percentages will be determined prior to closing.

You can view the full announcement from BTCS by clicking here.

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