OBITX Agrees to Acquire IT Professional Group

Rhea-AI Summary

OBITX, Inc. (OTCMKTS: OBTX) announced a non-binding letter of intent to acquire Mercury, Inc. for $2.1 million. Mercury, which generates approximately $2.5 million in annual revenue with a 15% profit margin, will enhance OBITX's blockchain operations. The acquisition aligns with OBITX's strategic growth plan, and it plans to launch cryptocurrency mining operations in Idaho within 60 days, targeting Bitcoin, Ethereum, and other coins. The project is expected to create significant job opportunities in the region.

Positive

• Acquisition of Mercury, Inc. valued at $2.1 million.
• Mercury generates approximately $2.5 million in annual revenue with a 15% profit margin.
• OBITX plans to launch cryptocurrency mining operations in Idaho, enhancing revenue potential.
• Mining operations expected to create significant job opportunities in Idaho Falls.

Negative

• The letter of intent is non-binding, presenting uncertainty in the acquisition.
• Potential risks include disruptions to current operations and challenges in employee retention.

Implements Cryptocurrency Mining Operation Strategy

Fleming Island, Florida, April 13, 2021 (GLOBE NEWSWIRE) -- OBITX, Inc., (OTCMKTS: OBTX), an advanced software development and services company specializing in blockchain technologies and decentralized processing, announced today that it has entered into a non-binding letter of intent to acquire 100% ownership of Mercury, Inc., with its base of operations in Idaho at its current valuation of $2.1 million.  Mercury was founded by skilled IT professionals with leading edge experience in enterprise software development, web application development, data analytics and visualization.    Mercury has consistently recorded approximately $2.5 million in revenue with a 15% bottom line profit margin over the past three years.  OBITX expects to close on the acquisition after completion of its due diligence period.  As the transaction proceeds, the Company will publicly disclose additional information through press releases or SEC filings, as appropriate.

OBITX has utilized Mercury as its hosting solution since May 2020.  Prior to closing, OBITX will be launching its mining operation in collaboration with Mercury, developing a leading and innovative mining operation in the western United States.  OBITX will commence mining for Bitcoin, Ethereum, and other alternative cryptocurrencies within the next 60 days.  Once the operations begin, the Company anticipates it will create significant job opportunities in Idaho Falls, Idaho.

According to blockchain.com, miners are earning nearly $60 million per day in mining operations.  In addition to mining for Bitcoin and Ethereum, OBITX will mine for several alternative coins.  “In choosing Idaho as our base for our mining operations, OBITX  will be able to secure access to some of the most competitively priced electrical energy worldwide,” said Eric Jaffe, OBITX CEO said. He went on to say, “The acquisition of Mercury, Inc., is right in line with our strategic growth plan.  Implementing these new operations is a key matrix to our development strategy. We will continue to increase the investment and construction of cryptocurrency computing centers in the USA.” 

About OBITX:

Headquartered in Fleming Island, Florida, OBITX, Inc., (OTCMKTS: OBTX) is a consulting and services organization specializing in blockchain technologies and decentralized processing.

Forward Looking Statements

This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate.

The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding. The occurrence of any event, change or other circumstances that could give rise to the terms of the LOI not hereafter being memorialized in a definitive agreement; the outcome of any legal proceedings that have been, or will be, instituted against the Company or other parties to the LOI following announcement of the LOI and transactions contemplated therein; the ability of the Company to meet listing standards following the transaction and in connection with the consummation thereof; the inability to complete the transactions contemplated by the LOI due to the failure to meet any closing conditions; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the announcement of the LOI and consummation of the transaction described therein; costs related to the proposed acquisition; changes in applicable laws or regulations; the ability of the acquired assets to meet its financial and strategic goals, due to, among other things, competition, the ability of the Company to grow and manage growth profitability, maintain relationships with customers and retain its key employees; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC") by the Company.

FAQ

What is the purpose of OBITX's acquisition of Mercury, Inc.?

The acquisition aims to enhance OBITX's blockchain operations and expand its cryptocurrency mining activities.

What is the valuation of Mercury, Inc. in the acquisition deal?

Mercury, Inc. is valued at $2.1 million.

How much revenue does Mercury, Inc. generate?

Mercury consistently generates approximately $2.5 million in revenue annually.

What types of cryptocurrencies will OBITX mine?

OBITX plans to mine Bitcoin, Ethereum, and various alternative cryptocurrencies.

When will OBITX begin its mining operations?

OBITX expects to start mining operations within 60 days.