Market Overview

Helix TCS Buys Blockchain-Enabled Cannabis Trading Platform Operator Amercanex International Exchange

Share:
Helix TCS Buys Blockchain-Enabled Cannabis Trading Platform Operator Amercanex International Exchange

Helix TCS Inc (OTC: HLIX), a provider of ancillary services for the cannabis industry, said Wednesday that it acquired Amercanex International Exchange, the operator of an electronic trading platform for the legal cannabis industry.

What Happened

Helix TCS said the acquisition of Amercanex International Exchange will give it access to an electronic communications network that can support blockchain technology and facilitate real-time transactions of wholesale cannabis product between licensed operators. 

Amercanex's blockchain-powered technology is SEC- and CFTC-compliant and provides users with real-time electronic transaction notifications, audit systems, QA lab results and dispensary loyalty programs for repeat buyers, according to Helix.

The system is available in 18 markets, including Canada, California, Washington, New York, Maine, Michigan, New Mexico and Illinois. 

"Due to the unique compliance requirements in each regulated cannabis market, providing a compliant exchange marketplace is an extremely complex endeavor," Helix TCS Executive Chairman and CEO Zachary Venegas told Benzinga.

"The acquisition of Amercanex will let us deepen the unique suite of technology to enable real-time access to wholesale marketplaces on a global scale and to facilitate transactions between licensees in completely different regulatory environments in a compliant manner."

Amercanex shareholders will receive a total of $15 million in Helix stock at the closing of the deal and can earn up to an additional $5 million based on year two revenue performance, according to Helix. The shareholders will also participate in revenue from seat sales that are in excess of a threshold price per seat, the company said. 

Why It's Important

The acquisition allows Helix TCS to strengthen its position in the cannabis ancillary space.

In March 2018, Helix merged with BioTrackTHC, the provider of the most popular point-of-sale system among U.S. dispensaries. In 2016, it acquired Cannabase, a wholesale portal for licensed cannabis businesses. Together with BioTrack and Cannabase, Amercanex will be part of Helix's Critical Infrastructure Services Platform. 

Going forward, Helix TCS plans to expand Amercanex's platform into new markets.

Related Links:

Is Blockchain A Solution To The Cannabis Industry's Banking Challenges?

Aphria Falls After Rejecting Green Growth's Hostile Takeover Offer

Posted-In: Amercanex International Exchange Blockchain marijuana medical marijuanaCannabis News M&A Markets Best of Benzinga

 

Related Articles (HLIX)

View Comments and Join the Discussion!

FreightWaves NOW -February 6, 2019

8 Stocks Moving In Wednesday's After-Hours Session