City View signs deal to buy 20% interest in Arkenyield

Executive Summary

• City View Green Holdings Inc. has entered into a definitive securities purchase agreement to acquire a 20% stake in Arkenyield, a digital asset yield platform, for an aggregate consideration of $575,000.
• The transaction involves a mixed consideration structure: half paid via the issuance of 5.75 million City View common shares at $0.05 per share, and the other half via a $287,500 convertible debenture convertible into 5.75 million shares at $0.05 per share.
• The acquisition is contingent upon shareholder and regulatory approval for a Change of Business (COB) from an industrial issuer to an investment issuer, which would shift City View’s primary focus to diversified investments in public/private companies and commodities.

Key Details

• Target: Arkenyield, described as a digital asset yield platform using concentrated liquidity market-making (CLMM) strategies for stablecoin-based returns.
• Acquisition Stake: 2,000,000 common shares of Arkenyield, representing approximately 20% of its issued and outstanding securities.
• Total Purchase Price: $575,000.
• Consideration Structure:
  • Equity Component: $287,500 satisfied by issuing 5,750,000 common shares of City View at a price of $0.05 per share.
  • Debt Component: $287,500 satisfied by issuing a convertible debenture.
• Debenture Terms:
  • Term: 5 years.
  • Conversion: Convertible into 5,750,000 common shares of City View.
  • Conversion Price: $0.05 per share.
• Future Options: City View retains the option to acquire the remaining 80% of Arkenyield’s outstanding shares on terms to be agreed upon by the parties.
• Regulatory/Corporate Changes:
  • Closing is subject to shareholder and regulatory approval for a Change of Business (COB) under Canadian Securities Exchange (CSE) Policy 8.
  • The COB changes City View’s status from an industrial issuer to an investment issuer.
  • The agreement itself is not considered a fundamental change under CSE Policy 8, but the subsequent COB is.
• Strategic Shift: Upon approval, City View will operate as a diversified investment and merchant banking firm focusing on:
  • Public and private companies.
  • Near-public companies and private capital.
  • Global venture capital initiatives.
  • Strategic physical commodities.
  • Investment objective: Long-term capital growth through a portfolio of undervalued companies.
• Arkenyield Business Model: Focuses on generating stablecoin-based returns via proprietary CLMM strategies, deploying capital across top-tier stablecoin pairs and blockchains, aiming to provide yield infrastructure for the digital economy.

Notable Quotes

• Note: No direct quotes from City View or Arkenyield executives were included in the provided text.