VANCOUVER, British Columbia, Oct. 04, 2018 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG” or the “Company”), a diversified blockchain and cryptocurrency company, announced today that it has entered into an agreement (the “Agreement”) with IBM Canada Ltd. (“IBM”) and selected IBM technology and services to jointly develop and deploy blockchain-based, global supply chain management solutions. These solutions will enable complete provenance, regulatory compliance, inventory management and on-time payment of products along the entire supply chain for regulated products such as pharmaceuticals.
IBM Services’ experts will collaborate with DMG to help build its new supply chain solutions which will leverage the IBM Blockchain Platform and DMG’s deep experience in blockchain analytics and forensics. Under the Agreement, DMG expects to spend approximately C$3,000,000 in the first 12 months to develop the global supply chain platform and up to a total of C$10,000,000 over three years through the hiring of IBM’s personnel. DMG expects to fund these costs through existing cash on hand, revenues, and if required, further financings or collaborations with other companies. IBM will provide program managers, technical architects, full stack developers, data scientists, data engineers, and developers to work alongside DMG’s blockchain development team.
The overall supply chain project has deliverables, specific projects, timelines and mandates that set forth the goals and steps as the global supply chain is developed. Under the Agreement, IBM is not investing money in DMG or in the global supply chain platform; rather, IBM will bring its personnel, global reach, and existing technology to this collaboration.
The solution will initially be deployed for enabling regulatory compliance, verifying provenance, and tracking quality control for regulated products, including pharmaceuticals. The IBM Cloud will host the solution and interfaces between the blockchain technology and legacy enterprise systems, ERP systems, and integration with manufacturers, distributors, retailers, shippers, as well as reporting and auditing systems. The benefits of this collaboration and the potential sources of revenue are not known at this time. DMG will provide further updates as this global supply chain platform is developed.
Dan Reitzik, CEO of DMG Blockchain Solutions Inc., commented, "We are honored to work with IBM to jointly develop this global platform. It is a testament to the expertise and experience of our blockchain development teams in Silicon Valley and Vancouver. Our first step is to develop this platform with IBM and then to monetize it."
DMG’s Chief Technology Officer, Danny Yang, is leading the development effort, and he is being supported by a strong team of advisors that includes Litecoin's creator, Charlie Lee. DMG's development team has already begun working with IBM Services to begin architecting the framework for this new supply chain solution.
Peter Finn, IBM Canada’s CTO for Strategy and Growth, and Master Inventor, commented, “Blockchain is ideally suited to address supply chain challenges because it establishes a trusted environment for all transactions. We are pleased to work with DMG on this important initiative. DMG’s selection of IBM services and blockchain technology on the IBM Cloud will help create robust blockchain solutions so all participants in the pharmaceutical or agriculture supply chain can gain permissioned access to known and trusted information regarding the origin and state of their transactions.”
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting - Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
Direct: 778-868-6470
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans and intentions, other potential transactions, the development of the supply chain platform with IBM and potential revenues from it, financing, ownership of intellectual property, product development, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
The securities of DMG are considered highly speculative due to the nature of DMG’s business.
Factors that could cause the actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.