American Blockchain Corporation (ABC) publicly traded as Good Vibrations Shoes, Inc., has announced a non-binding Letter of Intent (LOI) to form a strategic alliance with a privately owned blockchain and cryptocurrency enterprise currently structured as an LLC.
To prevent public harassment of the LLC, the parties have agreed to keep its identity confidential until a definitive agreement has been signed. Under the LOI, ABC will conduct a $15 million capital raise on a best-efforts basis to acquire a 35% equity stake in the LLC, which has already attracted $9 million in private funding at a $30 million valuation.
According to the announcement, ABC’s CEO George Sharp will return his 300,000 Preferred B shares in exchange for 50 million newly issued common shares to offset potential dilution from share issuances to investors. A lock-up agreement will prohibit the sale of these shares until January 2026.
The LOI also gives Worldwide NFT Inc. the option to contribute the final $2 million of the total raise if it successfully procures the funds. March 15, 2024, has been set as the target execution date for the definitive agreement, but this date may be pushed back if needed to finish ABC’s fundraising efforts.
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