Nigeria has come within radar as one of the target growth markets in a deal by an Israeli technology company for the distribution of cryptocurrency services.
Virtual Crypto Technologies Limited, an Israeli developer of software and hardware for the purchase and sale of crypto-currencies through ATMs, tablets, PCs and or mobile devices, says that Nigeria will be covered in the binding MOU with Chiron Limited for the distribution of virtual-crypto’s products in the territory of Turkey and North Cyprus.
Under the MoU between the two companies that takes effect from January 2018, Chiron also acquired the option to expand the distribution business to Nigeria within 12 months of the agreement to push the cryptocurrency technologies of the Israeli company.
In January 2018, Virtual Crypto says it signed a binding term sheet with Chiron Refineries Ltd., granting its subsidiary, Chiron Ltd., exclusive rights as a distributor of the company’s cryptocurrency products in the territories of North Cyprus and Turkey. Under the terms of the agreement, Chiron will pay Virtual Crypto a total of $250,000, $150,000 of which was made on account of future purchases, the company statement says.
Nigeria is also the icing on the cake in the cryptocurrency technology deal as Chiron also acquired the option to expand the distribution business to Nigeria within 12 months of the agreement. If exercised, the expansion into Nigeria will see Chiron will pay the an additional fee not higher than $250,000 to Virtual Crypto, according to the terms of the agreement announced between the two companies.
Chiron has also agreed to pay a revenue share by which Virtual Crypto will receive a fee of 30% of the net revenues received. There is no minimum purchase quota in the first year of the agreement, however Chiron has agreed to purchase at least $30,000 during the second year, and $50,000 during the third year of the agreement, Virtual Crypto says.
Chiron Refineries Ltd, is an Israeli company whose shares are listed for trade on the TASE, and its management is located in Turkey/North Cyprus which is engaged in the business of relocation of oil refineries. The company recently elected to further diversify its operation to include the “cryptocurrency accessibility” sector and entered the agreement with Virtual Crypto, according to the statement.
Chiron intends to market the company’s technology to casino cashiers, ATM operators, currency exchange offices and coffee shops, among other businesses who wish to offer their customers the ability to buy, sell and trade crypto currencies and provide immediate settlement of the currencies.
“We are excited to be working with the Chiron team as they seek to achieve their objectives in the cryptocurrency sector. I believe they have a significant opportunity to establish a leadership position in both Turkey and North Cyprus, and our technology will facilitate their ability to provide consumers with a secure, fast and cost-effective way to participate in the cryptocurrency market”, Alon Dayan, CEO of Virtual Crypto says.