Blockchain Stocks first came across ThreeD Capital several weeks ago as they announced that they intended to explore opportunities in the blockchain sector by initiating a strategic partnership with the Rai Stone Agency through its whole owned subsidiary Blockamoto.oi Corp.. As we love anything blockchain this motivated me to begin due diligence on the company and the more I discovered the more I liked. I included the press release below.
Before we move forward, lets go back and summarize what we learned about ThreeD Capital’s venture into the blockchain and cryptocurrency sector.
On Oct 26/17 the company issued a press release announcing the verticals which the company would be focusing on as they move forward with their business plan. They would focus on resources with a heavy emphasis on precious metals and battery-metal sectors, artificial intelligence with a focus on disruptive data science technologies which includes Machine Learning and Neuro Networks tech and third, the creation of a advisory group working under the flag of Blockamoto.io (which the company chose as a way to pay homage to the original creator of the cryptocurrency known as Bitcoin, Satoshi Nakamoto ) which is a wholly owned subsidiary of ThreeD Capital.
The company then announced the addition of Mr. Aly Madhavji to the advisory board. Mr. Madhavji is Founder and CEO of Global DCX, an innovative technology company launching secure digital currency exchanges across the globe starting in India. He is also an avid investor in startups and ICO’s. Some of his notable achievements that caught our attention were his previous employers, PwC, PayPal, Microsoft, Bloomberg, and INSEAD.
Next is the addition of a Mr. David Schirmer, who started his tax consulting career at Deloitte before moving on to become a financial analysts at Saint Gobain (SGC). He founded a company called Nabu Consulting which applies something called lean methodology to helping startup companies. He also took a keen interest in all things cryptocurrency and blockchain and began analyzing cryptocurrencies and blockchain opportunities from a fundamental standpoint and not so much a technical one.
It is the press release below is where we really began to become intrigued with the company.
Although the press release is vague, it indicates that Blockamoto is engaged in talks with several cryptocurrency mining companies. In our opinion cryptocurrency mining currently offers a lot of upside, several companies have made moves into crypto mining over the past few months such as HIVE Blockchain Technologies (TSXV:HIVE), HashChain Technology (TSXV:KASH) and Global Blockchain (TSXV:BLOC). Over $252,000,000 has been raised in the past 2 months through over-subscribed, non-brokered placements and bought deals for these 3 companies alone, which in itself is a very strong statement for the sector. I am not suggesting they will have such success in the mining sector as these other companies but the potential is certainly there and I will be keeping a close eye out for more news pertaining to this particular vertical.
How big will the blockchain and cryptocurrency space grow over the coming months and potentially years? RBC seems to believe it could grow well into the $10 trillions of dollars.
On December 31/17 Frank Dumas, CEO of St. Georges Eco-Mining (CSE:SX) was added to the IDK advisory board and subsequently the next day, St. Georges announced the addition of Sheldon Iwentash to its advisory board. St-Georges Eco-Mining is a company developing new technologies to solve some of the most common environmental problems in the mining industry (from company website).
In the press release below you can read about St. Georges new licensing agreement with Dr. Wei-Tek Tsai’s Qingdao Tiande Technologies Inc regarding a proprietary blockchain technology. They then immediately created a subsidiary called ZeU Crypto Networks Inc. and transferred blockchain technology rights to that company. It’s is suggested that move was made to make financings smoother, among other benefits.
Following the dual announcements of each CEO to the boards of each others’ companies, the company released news that they were teaming up with St. Georges to introduce the ZeU Crypto Network Inc. proprietary blockchain solutions throughout its global network and blockchain eco-system and to help sell $20,000,000 worth of 10.00% convertible unsecured debentures on a non-brokered offering basis. The work is being done through IDK’s subsidiary Blockamoto.io. What role will Sheldon and Blockamoto play? We speculate they will be buying a significant amount of the debentures, as well as using Sheldon’s potentially vast network of Bay Street connections to close this deal. I believe this makes a lot of sense as Sheldon is quoted in the Jan 7/18 NR:
“ThreeD Capital, through its wholly owned subsidiary, Blockamoto.io, has set a mandate to provide strategic advice to assist early stage blockchain solutions in reaching viability as quickly as possible. ZeU Crypto Networks could represent the most disruptive protocol of the already disruptive blockchain industry.”
Last, but certainly not least, was the addition of Dr. Wei‐Tek Tsai to the IDK advisory board on Jan 9/18, as his list of qualifications and achievements are so vast we will just include the press release below for you to read for yourself. In addition, Mr. George Tsiolis is added to the Advisory Board.
This final piece of the puzzle that has investors speculating wildly on what the next moves are for both companies. Excitement is in the air and social media is buzzing. I am also looking forward to following the story as it develops over the coming days and weeks ahead. How does IDK, Sheldon and Blockamoto benefit with the partnership to St. Georges? And vice versa? Will it be for St. Georges to gain access to Sheldon’s networks and financial benefits? We already know that IDK has made several great investments in other companies in both the public and private sector for blockchain, artificial intelligence and conventional mining.
So why is everyone going bonkers for Sheldon Iwentash anyway? Well, if you didn’t already know, Sheldon was the founder of a capital investment company called Pinetree Capital Ltd. in 1992. During its peak Pinetree held investments in more than 400 public and private resource companies and had a market cap of over $1 Billion. Companies such as Queenston Mining (acquired by Osisko Mining Corp. for $550 million), Aurelian Resources (acquired by Kinross for $1.2 billion), and Gold Eagle Mines (acquired by Goldcorp for $1.5 billion) were all seeded by Pinetree. It seemed like Sheldon was the Babe Ruth of financing during the early days of Pinetree. Unfortunately, after a long run of success the company was subjected to year after year of bearish markets which ultimately led to some debt convents being broken, the company falling and after 23 years, Sheldon retired. Investors must look at both sides of the story and make their own conclusions prior to making investments and it is important to realize that even the biggest companies can fail, but to build a company of that scale requires exceptional skill and pedigree, which I believe are the main ingredients to Sheldon’s character and business savviness. Blackberry failed as a hardware producer but is currently reinventing itself as a software service, and we believe that Sheldon is creating the next Pinetree with his new venture ThreeD Capital.
What are IDK’s assets?
(As of Sept 30/17)
-CKR Carbon Corp. (TSXV:CKR), 1,000,000 common shares and 1,000,000 warrants (exp. March 29,2020)
-Goldspot Discoveries (private), 270,000 common shares.
-Northern Sphere Mining Corp. (CSE:NSM), 1,431,000 common shares, 75,000 warrants (exp. April 10/19) and 500,000 warrants (exp. dec 16/20).
-New Found Gold Corp. (private), 13,500,00 common shares.
-SciCann Therapeutics Inc. (private), 16,000 common shares.
-27% Stake in Palisade Resources (private).
-18% Stake in Goldspot Discoveries
(As of the writing of this article Jan 15/18)
-Global Cannabis Applications Corp (CSE_APP) ThreeD held an aggregate of 4,000,000 of the Post-Closing Shares and 3,000,000 of the Post-Closing Convertible Securities (representing approximately 7.0% of the issued and outstanding common shares of the Company, or approximately 11.6% assuming exercise of such Post-Closing Convertible Securities only). IDK Sold $744,500 worth of APP stock, and still has 3 Million Shares in Lockup and 3 Million Warrants in lockup.
Potential current value of assets as of Jan 15/19;
-APP at $.79 = $4,740,000
-NSM at $.155 = $310,000
-GRAT (formally CKR) at $.195 = $390,000
Cash on hand from APP stock sale- $744,500
Total value of known assets and cash = $6,184,500
We don’t believe this represents a very accurate snapshot of the total value of the company as they have several private investments and determining value of those is not possible.
Lets look at some other key points in the IDK arsenal;
-Gratomic Inc. (CSE:GRAT) (formally CKR) has Sheldon as co-CEO and executive chairman.
-Northern Sphere Mining has legendary miner Eric Sprott as a large shareholder through a recent placement.
-Goldspot Discoveries, an IDK investment just completed a $1.3 million dollar financing from a prolific mining financier and famous Hochschild Mining Plc., a British based silver and gold miner with operations across the globe. Also worth noting is that Sheldon was added to the advisory board.
-Sheldon is a partner at Rai Stone Agency.
It seems very clear to me that Sheldon is still very capable of doing exceptional business and has a keen eye for spotting trends and capitalizing on them at the beginning. I also believe he still has a rolodex or iPhone full of connections still willing to support him and his ventures in a big way. The trading is supportive of this statement. Looking at the trading over the past few sessions we’ve seen huge volumes of shares being traded. Since Jan 2/18 91.75 million shares have traded. More than the entirety of the float, with a massive 20+ million on Thursday Jan 11/17. With RSI sitting just over 82, it suggests there is still lots of room to run.
Several recent insider sells noted on SEDI with regards to a company called 1313366 Ontario Inc. and a gentleman named Jeff Kopman. Both are one in the same and only mentioned as insiders because the combined holding of Jeff and his company is more than 10%.
I believe there are still several potential catalysts that could continue to push this stock north, including the release of more details regarding the partnership with St. Georges. I am also expecting to get clarification on potential crypto currency mining deals or partnerships. We could also get another surprise or two with regards to the companies that IDK has investments in, and there is a lot of buzz around the company at the moment on both social media feeds and bulletin boards. I look forward to following the company as the story unfolds.