Great terms including a solid lock up period for the shares, well done shows the company is well managed and essential to Web 3.0 is now one of the major players with important patents from the acquisition, this is one of the big ones in the Metaverse, Twitter and Facebook take note:
“Item 1.01 Entry into a Material Definitive Agreement.
On June 29, 2022, DatChat, Inc., (the “Company” or “DatChat”), DatChat Patents I, Inc., a Nevada corporation and wholly-owned subsidiary of DatChat (“Merger Sub I”), DatChat Patents II, LLC, a Nevada limited liability company (“Merger Sub II”), and Avila Security Corporation, a Delaware corporation (“Avila”), entered into an agreement and plan of merger (the “Merger Agreement”). Pursuant to the Merger Agreement, DatChat acquired all of the issued and outstanding shares of Avila in consideration of the issuance of an aggregate of 1,000,000 shares (the “Acquisition Shares”) of restricted stock, par value $0.0001, of DatChat. The acquisition also included intellectual property rights in blockchain based digital rights management and object sharing technology, including encrypted WebRTC real-time video and audio streaming communications.
The common stock issued in the merger was issued in reliance on an exemption from registration under Section 4(a)(2) the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506(b) of Regulation D promulgated thereunder, and such common stock will be restricted from the offer or resale absent registration or an available exemption under applicable federal and state securities laws.
Pursuant to the Merger Agreement, the Acquisition Shares will be subject to a “lock-up” period, with certain tranches of the Acquisition Shares being released from the lock-up commencing 6-months after the closing date, and then continuing in equal quarterly amounts from 12-months after the closing date until 21-months from the closing date.”
my posts are always theory and not financial advice
