VANCOUVER, BC, June 5, 2020 /CNW/ - TAAL Distributed Information Technologies Inc. (CSE: TAAL) (FWB: 9SQ) ("TAAL") has entered into a definitive share purchase and equity financing agreement and development agreement (the "Agreements") with Codugh Pty Ltd. (the "Company") an Australian technology company. The Company's principal asset is Codugh, an on-demand application programming interface ("API") marketplace that incentivises developers globally to post and get compensation for their APIs. Through the Agreements, TAAL has agreed to acquire 20% of the Company, the proceeds of which will be used to further develop, launch, and scale the Company's products and platform. The investment is expected to further the development and commercialization of TAAL's merchant API services layer, which uses the Bitcoin SV (BSV) blockchain infrastructure for its operation and monetization.
Shashank Signhal and Andrew Snow founded the Company with the goal of building a simple yet robust API marketplace that would finally allow developers to monetize their code, by posting their APIs to a public platform and getting paid in real-time. The Codugh marketplace is successful because of the micropayments feature of the BSV blockchain, which allows consumers to browse and choose an API that suits their needs, and pays the developer every time their API is called. This type of innovative marketplace for developers is unprecedented, and will help bridge a gap between blockchain business ideas and economic opportunity. The Codugh business model differentiates itself from the traditional subscription-fee model by creating a service that is only operational on a functioning micropayments network, and can handle on-demand, real-time payments, solving the problem of paying developers for producing new services.
"We have worked hard to get to where we are today, and are thrilled to be recognized by TAAL, one of the leaders in the blockchain technology industry, " said Shashank Singhal, CEO of the Company. "The global API management market has been predicted to be worth US$6.2 billion by 2024, but we hope to reach even beyond that, to the global developer community. To build Codugh, we needed to create a truly on-demand system that was powered by microtransactions and could scale massively. This was only possible on BSV."
TAAL views the Agreements as an important investment that aligns with its strategic vision. The Codugh model serves to highlight the potential of the microservice economy made possible by the BSV network. The micropayments feature of the blockchain creates new revenue streams outside of digital assets, where hashing rig operators can process fees at a more granular level, and in the case of APIs, on a per call basis. This will help clients avoid long term contracts, while also allowing for the possibility of charging fees at fractions of a cent. In the past, such services would normally have had to be given away for free due to the costs associated with payment methods available from traditional financial institutions, while still exposing the developers to contend with distributed denial of service attacks (DDoS).
"We are very excited to collaborate with Codugh," states Jerry Chan, CEO of TAAL. "The Codugh team complements TAAL's transaction processing services, and allows businesses and development projects built upon BSV to add seamless API integration to their products and services. This is an important step forward in our 5-year strategic vision."
About TAAL Distributed Information Technologies Inc.
TAAL Distributed Information Technologies Inc. (CSE:TAAL) delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the Bitcoin SV platform, and developing, operating, and managing distributed computing systems for enterprise users.
The CSE accepts no responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements included in this news release constitute "forward-looking information" as defined under applicable Canadian securities legislation. The words "will", "intends", "expects" and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes, but is not limited to statements regarding: the acquisition of a 20% interest in the Company, the anticipated benefits, effects, performance, capabilities or importance to TAAL or otherwise of, the development and commercialization of a merchant API services layer, including with respect to the effects on, and of the capabilities of, the microservice economy, the Bitcoin SV blockchain and the blockchain industry, statements with respect to TAAL's 5-year technology roadmap (including TAAL's ability to scale operations). These statements are based on factors assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include the future acceptance of Bitcoin SV and other digital assets and risks related to information processing using those platforms, the ability for TAAL to leverage intellectual property into viable income streams and other risks set out in Item 20 Risk Factors of TAAL's Form 2A – Listing Statement dated July 31, 2018 and elsewhere in TAAL's continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contain herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE Taal Distributed Information Technologies Inc.
For further information: Matt Whitcomb, Investor Relations, Telephone: +1 800-371-2809; or Julia Hanbury, Public Relations, [email protected]; or Jerry Chan, CEO, [email protected]