Wellfield Technologies and Leonovus Spin-Out Partnership for Tradewind

Exciting Developments in Digital Gold Trading

In a significant move, Wellfield Technologies Inc. and Leonovus Inc. have signed a definitive agreement for the acquisition of Tradewind Markets Inc., a fully owned subsidiary of Wellfield. This strategic transaction will lead to the commencement of a reverse take-over (RTO) of Leonovus, paving the way for new opportunities in the digital gold market.

Introducing Tradewind Markets Inc.

Tradewind Markets represents a modern solution for gold ownership and trading, utilizing blockchain technology in collaboration with a sovereign mint. This unique approach enables investors to have digital ownership of gold that is securely custodied, offering innovative trading solutions available 24/7. Tradewind has successfully digitized ownership of over CDN$170 million in physical gold and silver, allowing users a seamless experience in trading precious metals.

Innovations in Blockchain Technology

The company plans to introduce decentralized finance (DeFi) services based on smart contracts. These services will include an Automated Market-Maker (AMM) for immediate settlement in spot gold trading and additional products that allow investors to earn yields on their gold holdings. By merging blockchain technology with traditional assets like gold, Tradewind is creating new pathways for investors.

Please Welcome the Resulting Issuer

Through this transaction, Leonovus will change its name to Tradewind Markets Inc., reinforcing its commitment to digital financial solutions. It will also undertake a stock consolidation wherein every 11.11 pre-consolidated shares will be converted into one new share. This consolidation reflects the company's growth strategy, aligning it with the current demands of the market.

Wellfield Technologies' Support Agreement

Wellfield Technologies will provide ongoing support to Tradewind Markets, supplying expertise in areas such as electronic trading, gold investment management, and blockchain technology. Such collaboration will help ensure a smooth technology transition over the first 18 months as Tradewind expands its operations, solidifying its stature in the digital gold trading sector.

Market Insights from Leadership

Levy Cohen, CEO of Wellfield, expressed excitement about the strategic RTO, highlighting its importance in fostering decentralized finance solutions. Meanwhile, Michael Gaffney, CEO of Leonovus, emphasized that this development presents a distinct opportunity for Tradewind, especially considering the rising global demand for gold as a safe-haven asset amidst ongoing economic uncertainties.

Financing and Future Prospects

The RTO is also complemented by a private placement financing effort targeting between $4 million and $6 million in gross proceeds. This new influx of capital is vital in supporting the operations of the Resulting Issuer and facilitates the necessary upgrades to the Tradewind platform, ensuring a competitive edge in the evolving digital asset landscape.

Board Restructuring and Governance

Upon the RTO's completion, the governance structure of the Resulting Issuer will be refreshed, with a new board composed of directors nominated by Wellfield and Leonovus. Wellfield will lead the appointment of key executive roles, positioning themselves favorably for future growth.

Frequently Asked Questions

What is the main objective of the RTO between Wellfield and Leonovus?

The RTO aims to enable Leonovus to acquire Tradewind Markets Inc., allowing them to expand in the digital gold trading sector.

What innovations will Tradewind Markets introduce after the RTO?

Tradewind plans to introduce decentralized finance services, including an Automated Market-Maker for spot gold trading and yield-generating products.

How much capital is targeted through the financing efforts related to the RTO?

Leonovus is seeking to raise a minimum of $4 million and a maximum of $6 million through a private placement financing.

What changes will happen to the leadership following the transaction?

The current board of directors for Leonovus will be restructured to include nominees from Wellfield, enhancing leadership aligned with their strategic vision.

Why is this transaction significant for investors?

Investors will benefit from improved trading solutions in the gold market, enhanced operational capabilities, and a stronger position through the digitalization of precious metals.

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