The American Premium Water Corporation (APW), a diversified consumer products company, has announced its intention to acquire CloudXchange DataCentre Pte Ltd (CloudX SG), an entity that engages in crypto-mining-related business.
APW in a statement issued on Monday that was obtained by Finance Magnates said its Board of Directors had approved its 100% acquisition of the company which is a wholly-owned subsidiary of CloudXchange DataCentre Inc. (CloudX).
The purchase price of the transaction will be at a consideration of US$45.6 million which reflects a projected price-to-earnings ratio of 30, the products company said.
Additionally, APW disclosed that it will issue restricted common shares of equivalent value to Heng Fai Ambrose Chan, the seller and sole shareholder of CloudX. Chain is an experienced entrepreneur and business owner.
Change of Name
With
the acquisition, APW, known for building brands that utilize cutting edge
bioscience and nanotechnology in the Cannabidiol and wellness space, will now
be focusing on the crypto-mining sector.
In addition, the company intends to change its name to 'American Premium Mining Corporation'.
APW further explained: “As part of the terms of the acquisition agreement, the Seller [Chan] has provided APW with a guarantee to generate a minimum of US$1.5 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for CloudX SG within the first 12 months from June 2022 or upon the full delivery of the mining rigs (miners).
“In the event that the EBITDA of CloudX SG falls short of US$1.5 million, a guaranteed top-up for any shortfall amount up to US$1.5 million will be borne by the Seller.”
APW’s announcement comes some days after the US Treasury announced that it had imposed sanctions on BitRiver, one of the largest crypto data center service providers in the industry, over its operations in Russia.
