TAAL Secures Critical Technology on the Back of a US$1M Licensing Deal with nChain Holdings
VANCOUVER, April 20, 2020 /CNW/ - TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ | OTCQB:SQRMF) ("TAAL") announces that it has entered into a strategic licensing agreement with nChain Group Holdings Ltd. ("nChain") effective as of April 20, 2020 for ten (10) years to use key elements of their intellectual property patent portfolio (the "IP Licensing Agreement").
Strategic Partnership
The IP Licensing Agreement with nChain provides TAAL with non-exclusive access and rights over 10 years to develop advanced blockchain transactional systems on top of nChain's existing granted patents, pending patents and future filed patent applications in the area of specialised blockchain transaction handling, processing, storage, retrieval and display. Further, this agreement opens the door for TAAL to work even more closely with nChain to develop advanced blockchain infrastructure solutions that form the foundation of TAAL's strategy to service the emerging growth in high volume transactions coming from business and enterprise investment in blockchain solutions. Pursuant to the IP Licensing Agreement, TAAL will pay nChain US$1,000,000 in licensing fees over the first year of the agreement.
nChain's extensive portfolio of blockchain-related patents delivers TAAL a competitive advantage in the growing but nascent market of blockchain solutions. TAAL is committed to developing its blockchain infrastructure solutions on the Bitcoin SV network and the portfolio has been licensed to TAAL for use solely on the Bitcoin SV blockchain network.
The nChain Group includes a blockchain research and development centre based in the UK, that focuses on the original Satoshi Nakamoto blockchain protocol and designs that are embodied in the Bitcoin SV platform. In addition to an expansive portfolio of patents, the nChain Group has further enhanced its leadership position in blockchain development through a recently completed acquisition of CREA, a blockchain development firm from Slovenia, establishing nChain as a powerhouse in terms of blockchain development and solutions. TAAL sees nChain and its portfolio as key to executing on some of TAAL's strategic objectives relating to expanding the use of blockchain infrastructure, transaction processing, and cloud computing solutions which leverage blockchain to deliver innovative solutions to traditional markets.
With this IP Licensing Agreement, TAAL has taken another important step towards assembling the necessary components to deliver novel and unique solutions in blockchain processing on the Bitcoin SV platform, which TAAL expects to become an important revenue stream as the impacts of the further halving of block subsidies occurs again in 2024.
This transaction is consistent with TAAL's decoupling of its historical "mining" operations, from being entirely dependent on block reward subsidies which are impacted by the network reward halving every 210,000 blocks. TAAL sees that the future of transaction processing on the Bitcoin SV blockchain is transaction fee and services based and TAAL is finalising a 5-year infrastructure roadmap which it expects to communicate to the market later in 2020.
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.
About nChain Group Holdings Ltd.
nChain Group Holdings Ltd is a leading provider of enterprise-grade blockchain solutions, helping businesses and organizations realize and protect the value of their data. nChain is based in London and boasts one of the largest teams of blockchain developers globally and a leading portfolio of novel blockchain IP. nChain is committed to helping clients maintain competitive advantage in business through more efficient management of data.
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 development of advanced blockchain transactional systems, the filing of patent applications, TAAL's expectations with respect to investment in blockchain solutions and the future of transaction processing, payments to nChain, TAAL's strategic objectives and the role of the IP Licensing Agreement in the execution thereof, and TAAL's intention for future communications regarding its 5-year roadmap. 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.
Matt Whitcomb, Investor Relations, Telephone: +1 800-371-2809 or Jerry Chan, CEO
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