Arcario AB (“Arcario”) and its subsidiary K33 Holding AS (“K33”) have today entered into an investment agreement with Option Technologies Solutions International LLC (“Liquid Mercury”). The agreement facilitates an investment of up to USD 500,000 into K33 based on a post-money valuation cap for K33 of USD 30 million.
Today’s agreement follows on the heels of the non-binding term sheet announced on July 3, 2023, and represents the formalization of the proposed strategic partnership. The investment takes the form of a SAFE (Simple Agreement for Future Equity), an innovative approach that allows investors to secure the right to purchase shares in a future equity round, providing a streamlined method for startups to raise funding.
Per the terms of this agreement, Liquid Mercury obtains the right to invest up to USD 500,000 (approximately SEK 5.3 million), convertible to shares in a future financing round at a 25% discount. This conversion will be based on a post-money valuation cap for K33 of USD 30 million (approximately SEK 317 million).
In addition to the financial terms, the agreement includes other stipulations. One notable provision is the right for Liquid Mercury to designate a board observer in K33. This empowers the company to have an active role in shaping K33’s strategic trajectory, thereby enhancing the value of its involvement beyond mere financial contribution.
Headquartered in Chicago, Liquid Mercury is a global leader in professional trading technology, renowned for their institutional-grade infrastructure and best-in-class trading tools. By joining forces, Liquid Mercury and K33 are set to bridge the gap between traditional trading and the burgeoning world of crypto.