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$QGSI 0.10 up 17% Reverse merger news out:
QuantGate and CoinAnalyst Announce LOI to Merge, Creating One of the Leading Providers of Artificial Intelligence and Machine Learning Solutions for the Financial Services Industry

QuantGate and CoinAnalyst Announce LOI to Merge, Creating One of the Leading Providers of Artificial Intelligence and Machine Learning Solutions for the Financial Services Industry
Newsfile Corp.
Newsfile Corp
Toronto, Ontario and New York, New York--(Newsfile Corp. - October 20, 2022) - QuantGate Systems Inc. (OTCQB: QGSI) (the "QuantGate" or "Company"), an Artificial Intelligence ("AI"), Machine Learning ("ML") SaaS-based Fintech solutions provider is pleased to announce that it has entered into a non-binding letter of intent dated October 14, 2022 (the "LOI") with CoinAnalyst Corp. (CSE: COYX) (FSE: 1EO) ("CoinAnalyst") pursuant to which the Company and CoinAnalyst will enter into a business combination by way of a share exchange, three-corner amalgamation, merger, amalgamation, arrangement or other similar form of transaction (collectively, the forgoing with any related transaction, the "Transaction") which will result in QuantGate and all of its subsidiaries and affiliates becoming directly or indirectly wholly owned subsidiaries of the CoinAnalyst (upon completion of the Transaction, referred to as the "Resulting Issuer").

The Transaction will therefore result in a reverse take-over of CoinAnalyst by QuantGate whereby the existing shareholders of QuantGate will own a majority of the outstanding common shares of CoinAnalyst. The Resulting Issuer will be a technology issuer and its primary business will be that of QuantGate's business.

The acceptance of the LOI will be followed by good faith negotiations of definitive documentation, including a definitive merger, amalgamation or share exchange agreement (the "Definitive Agreement") among the parties setting forth the detailed terms of the Transaction, including the basic understandings set out in the LOI and such other terms and conditions as are customary for transactions of the similar nature and magnitude of the Transaction.

About the Combined Companies

CoinAnalyst is a Frankfurt-based startup, with its headquarters located in Toronto and sales infrastructure in the United States and Europe. CoinAnalyst uses machine learning algorithms to detect and provide social sentiment analysis for cryptocurrencies and its shared underlying Big Data/AI platform is currently used by several of the largest Fortune 500 companies in the German automotive industry, as well as aviation industries.

The addition of CoinAnalyst's technology fits into QuantGate's overall strategy to expand its product offerings and distribution. CoinAnalyst would bring big data expertise and AI technology, subscribers to a monthly electronic newsletter, and AI Based analytic tools for cryptocurrency investors. Together with QuantGate's near term opportunity signals, the Resulting Issuer anticipates that it will offer an attractive analytical package to trading firms and traders of all asset classes.

The combined Big Data and AI/ML features would allow the new entity to expand its services to Banking, Finance Services, Payments, and Insurance, which has a market size of USD 15.65 Billion in 2020 and is expected to reach USD 86.68 Billion in 2027.

Govin Misir, CEO of QuantGate: "I am excited to lead this team into the future. The proposed combination of our two companies marks an important milestone in our mission to provide cutting-edge big data solutions to the banking, financial services, insurance, and payment industries. The anticipated synergies between our two teams will position the combined entity to deliver solutions that help our clients stay ahead of the curve."

"We originally connected with QuantGate to form a strategic partnership," stated Pascal Lauria, Founder and CEO of CoinAnalyst, "But we quickly realized that a merger between the two companies has the ability to deliver big data & AI based fintech products in both the traditional finance and digital asset markets. We look forward to a combined entity rolling out best-in-class solutions."

About the Transaction

Upon completion of the Transaction, CoinAnalyst shall represent in aggregate approximately three percent (3%) of the issued and outstanding common shares of the Resulting Issuer and QuantGate shall represent approximately ninety-seven percent (97%). Concurrent with the completion of the Transaction, the common shares of CoinAnalyst (the "Common Shares") shall be consolidated on a basis of 14.02 current Common Shares (the "Consolidation Ratio") for 1 post-consolidation Common Share prior to closing (the "Consolidation"), such that there will be approximately 6,046,018 common shares of the Resulting Issuer (the "Resulting Issuer Shares") issued and outstanding to the former security holders of CoinAnalyst upon the completion of the Transaction; and approximately 282,806,297 Resulting Issuer Shares will be held by the former security holders of QuantGate.

In connection with the entering into of the Definitive Agreement, certain directors, officers, and significant shareholders of CoinAnalyst will also enter into lock-up agreements for a period of six months.

CoinAnalyst will change its company name to such name as QuantGate may determine which shall become effective concurrent with the completion of the Transaction.

https://www.otcmarkets.com/stock/QGSI/news/story?e&id=2355752