Millennium BlockChain Inc. has announced that it has secured a 10% ownership position in Synergy Quantum, the world's first private wealth management solution on a blockchain platform.
Millenium disclosed that the all-stock transaction is valued at $5 million. The company, which is focused on blockchain technologies and crypto-assets said it entered into the deal because Synergy Quantum is on the cutting edge of applying the robustness of blockchain technology to asset management.
Millennium Counts On Synergy Quantum To Disrupt The Financial Services Industry
The company is counting on the role of technology in managing wealth to accelerate an unparalleled rate that is able to create a massive amount of havoc in the financial services industry.
It says the application of blockchain technology to financial services, and in particular wealth management, would disrupt and transform private banking to empower the fastest growing wealth demographic with the tools and information that have traditionally only been available to the wealthiest of investors.
According to Millennium, it is long past time to level the playing field between ultra, high-wealth investors and the average investor, and Synergy's strategy is aimed at doing just that.
Synergy Quantum’s Role
With $2.6 billion in assets under management from 150 clients, Synergy Asset Management has been in operation for more than two decades, delivering consistently higher returns than those of the top private banks.
Synergy Quantum exists as as an extension of the asset management group to target the underserved demographic of individuals and families with a net worth of between $1 million and $5 million. These millionaires account for almost 90% of the millionaires globally, yet they have long been neglected and historically have had limited access to premium financial products and services. Synergy Quantum is planning an initial coin offering (ICO), seeking to raise $100 million. Synergy Quantum intends to have $10 billion in AUM within five years.
Under the terms of the letter of intent, Millennium BlockChain will acquire a 10% stake in Synergy Quantum at a $50 million valuation in consideration of issuing to Synergy Quantum shares of Millennium BlockChain convertible preferred stock based on the volume-weighted average price of Millennium BlockChain's common stock at closing. The Company will also receive an option to purchase an additional 10% within 12 months of the closing date of this transaction.
In addition, Millennium BlockChain will issue three-year and five-year non-cashless warrants to Synergy Quantum. The strike prices on the three-year warrants will range from $1.50 to $4.00 per share. If all of the three-year warrants are exercised, it would result in $10.5 million of capital added to Millennium BlockChain's balance sheet. The strike prices on the five-year warrants range from $5.00 to $10.00 share, providing the potential for $92.5 million in capital to Millennium BlockChain.