Tactico Exit: Neuro Digital Inc. gets acquired by CryptoStar Corp.
Dec 22, 2021 -
1 Min read
MONTREAL – Tactico is pleased to announce that on December 15, 2021, Neuro Digital Inc., a Tactico portfolio company, was acquired by CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF). Neuro Digital is a data centre operator specializing in GPU mining, as well as Decentralized Finance (DeFi) and AI solutions with a power capacity of 0.5 megawatt.
The share purchase agreement was a CAD$2.4 million cash consideration, subject to customary purchase price adjustments in addition to a pre-transaction dividend of $1.6 million. With this acquisition, Philippe Bergeron and Frederick Angers will continue their role as Chief Executive Officer and Chief Technology Officer of Neuro Digital, and will also be responsible for the expansion of operations throughout Quebec, Canada.
Philippe Leroux, Partner and Legal Counsel at Tactico, who has been heavily involved in supporting Neuro Digital Inc. since May 2019 (the date of initial investment), comments: “I have had the pleasure of working closely with Philippe Bergeron and Frederick Angers as well as the Company’s board of directors throughout its tremendous growth. I have always been highly impressed by the team’s commitment and professionalism as we experienced the exciting crypto market headwinds. It is extremely rewarding to work with likeminded individuals towards a common goal and to see it come to fruition.”
Tactico’s SPV had a gross return of close to 62% (before fees and taxes) in just over two years. Philippe Leroux added, “We are very pleased with the return from this investment particularly when considering our very conservative investment thesis and the risk-mitigating strategies Tactico utilized in this situation.”
About CryptoStar Corp.
CryptoStar has cryptocurrency mining operations with data centres located in the U.S.A. and Canada. CryptoStar is currently dedicated to becoming one of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners worldwide.
Tactico is a hands-on venture capital firm specializing in implementing strategic and tactical solutions for curated, early-stage investments. Along with providing capital, Tactico’s partners get involved in helping business stakeholders establish the future strategic direction of the company. Its leadership team has extensive experience building and operating successful businesses and navigating dynamic corporate climates. Tactico has broken down the barriers so that accredited investors have the opportunity to invest alongside us through targeted special purpose vehicles (SPVs) and Tactico Strategic Finance (TSF), a diversified debt fund.