01:10 PM EDT, 07/09/2025 (MT Newswires) -- Blockchain Venture Capital (BVCI.CN) on Wednesday said it entered into a non-binding memorandum of understanding on May 26 with Coin Shack Inc, an Ontario-based digital asset trading platform and retail store, to acquire 100% of its business operations through an asset purchase transaction.

Coin Shack operates a retail storefront and crypto trading platform based in Markham, Ontario.

Blockchain Venture Capital said that the transaction is considered an arm's length transaction and no change of control or fundamental change is expected as a result of the proposed acquisition.

The company said that the memorandum of understanding outlines its intention to complete the acquisition of Coin Shack, subject to the negotiation and execution of a definitive asset purchase agreement, satisfactory completion of due diligence, and the successful closing of a $1 million convertible loan financing.

The proceeds from the financing will be used in part to fund the acquisition and support ongoing working capital needs.

The company said that the parties anticipate finalizing and signing the definitive agreement within the next few weeks and it expects to announce the completion of the acquisition and related financing promptly thereafter. No additional regulatory approvals are anticipated for the completion of the transaction.

Coin Shack's operations will fall under Blockchain Venture Capital's existing Money Services Business (MSB) license registered with FINTRAC.

"This transaction aligns with BVCI's long-term vision to build a fully integrated and regulated infrastructure for digital asset issuance, trading, and settlement in Canada," said the company.

The company's shares were last seen down $0.12 to $0.40 on the Canadian Securities Exchange.

Price: 0.40, Change: -0.12, Percent Change: -23.08