CALGARY, Alberta--(BUSINESS WIRE)--Olympia Financial Group Inc. ("Olympia") (TSX: OLY) is pleased to announce that Olympia Trust Company (“Olympia Trust”) has entered into a letter of intent (“LOI”) dated April 21, 2021 with Knox Capital Inc. and Knox Industries Inc. (collectively, “Knox”) pursuant to which, subject to the satisfaction of certain conditions, Olympia Trust will be granted the exclusive Canadian license to use a proprietary Bitcoin custody system (the “Custody System”) developed by Knox. In addition, Olympia Trust will acquire certain facilities and insurance policies used by Knox in the operation of the Custody System and the right to provide custody service to Knox’s existing Canadian customers (the “Transaction”).
Upon completion of the Transaction, it is anticipated that Olympia Trust will be one of the few Canadian financial institutions able to hold Bitcoin as a “qualified custodian”, under National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and as a “custodian” under National Instrument 81-102 Investment Funds. It is also anticipated that Olympia Trust will be able to provide custodial services to Investment Industry Regulatory Organization of Canada (IIROC) regulated investment dealers who offer Bitcoin to their clients.
Mr. Craig Skauge, President & CEO of Olympia Trust, said: “Being able to offer Bitcoin custody is a natural evolution of our traditional corporate trust services. The appetite for institutional investors to hold Bitcoin continues to grow. By deploying this best-in-class custody solution in partnership with Knox, Olympia will be well positioned to serve the Canadian market.”
Mr. Alex Daskalov, CEO of Knox, said: “The Canadian market has struggled with a lack of quality institutional Bitcoin custody options. In Olympia Trust, we saw a storied Canadian institution with decades of experience, who shares our optimism on this opportunity. We are proud to announce our partnership, pairing Olympia's track record and experience with Knox insurable Bitcoin custody infrastructure, producing the safest compliant option for the Canadian market.”
The final structure of the Transaction will be determined by the parties following the completion of due diligence. Completion of the Transaction will be subject to the satisfaction of certain conditions precedent, including Olympia completing a satisfactory due diligence investigation, the parties mutually agreeing to the terms of and executing final definitive agreements (the "Definitive Agreements") and certain other customary conditions. As consideration for the grant of license and the transfer of assets and customers, it is anticipated that Knox will receive a one-time fee of $500,000 and a share of future profits generated by the license and assets acquired by Olympia from Knox. Pursuant to the terms of the LOI, the parties intend to sign the Definitive Agreements in the third quarter of 2021 with an expected closing by the end of that quarter.
About Knox Capital Inc.
Based in Canada and operating across the United States, Canada, European Union, and United Kingdom, Knox is an insured Bitcoin custody provider focused on cryptocurrency key management, allowing cryptocurrency service providers, investors, and fiduciaries to mitigate the risk of theft and loss. Institutional investors in Knox include Initialized Capital, iNovia Capital, Ferst Capital Partners and FJ Labs.
On December 17, 2020, Knox announced the successful completion of a SOC 2 Type II audit, becoming the only Bitcoin custody provider in Canada with a SOC 2 Type II certification.
For further information visit www.knoxcustody.com
About Olympia Financial Group Inc.
Olympia conducts most of its operations through its subsidiary Olympia Trust Company, a non-deposit taking trust company. Olympia Trust Company is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. Olympia Trust Company administers self-directed registered accounts, provides foreign currency exchange services and Corporate and Shareholder services. Olympia also offers private health services plans through its subsidiary Olympia Benefits Inc. and provides information technology services to exempt market dealers, registrants and issuers through its Exempt Edge division.
Olympia’s common shares are listed on the Toronto Stock Exchange under the symbol “OLY”.
Statements Regarding Forward Looking Information
Certain portions of this press release as well as other public statements by Olympia contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward–looking statements”, which may not be based on historical fact. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continue”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” and similar expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information. Forward-looking statements contained in Olympia’s public disclosure include, without limitation, Olympia’s earnings expectations, fee income, expense levels, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and Olympia’s ability to complete strategic transactions and other factors. In addition, this news release contains forward-looking statements relating to: (a) the terms and conditions of the Transaction.; (b) whether the Transaction will be completed; (c) if the Transaction is completed and, if completed, the date on which the Transaction is completed; and (d) the cryptocurrency custodian business that Olympia anticipates that it will be able to operate following the completion of the Transaction.
All material assumptions used in making forward-looking statements are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current interest rate and liquidity conditions affecting Olympia and the Canadian economy. Certain material factors or assumptions are applied by Olympia in making forward-looking statements, including without limitation, factors and assumptions regarding interest and foreign exchange rates, availability of key personnel, the effect of competition, government regulation of its business, computer failure or security breaches, future capital requirements, acceptance of its products in the marketplace, its operating cost structure, the current tax regime and the ability of Olympia to obtain necessary third-party and governmental approvals, as applicable.