According to the announcement, the first transaction under the share exchange agreement is expected to occur on or before April 15.
500.com and Blockchain Alliance have also made certain agreements related to net operating profits. If BTC.com records a net operating profit in the fiscal year ending in December, 500.com will have to issue additional shares to the Blockchain Alliance.
Assuming that the minimum amount of the net operating profit is US$20 million, a maximum of 22 million additional Class A ordinary shares can be issued.
In contrast, if the BTC.com mining pool business records a net operating loss during the same period, 500.com will be entitled to repurchase certain Class A ordinary shares held by the Blockchain Alliance.
500.com is a New York Stock Exchange-listed company (WBAI) offering a range of online lottery services. The company has been moving into the crypto industry recently. In early February, 500.com purchased 5,900 Bitcoin mining devices at US$8.5 million.
In January, 500.com announced that its private placement subscription price will be settled both in the U.S. dollar and Bitcoin.
Source: Cointelegraph
