Santo Mining Corp (OTCMKTS:SANP) saw shares tumbled 14.29% last week when the company announced the signing of a Letter of Intent that paves way for it to merge with Chongqing Yuhuan Technology Co. Ltd, operating as Canoe Pool. The merger will result in a combined company called Canoe Pool America.
“Both companies complement each other in all the right places. During the next few weeks, we will be evaluating many aspects of this merger, including new directorships to guide the company into the future,” said CEO Franjose Yglesias.
Santo Mining Corp (OTCMKTS:SANP) doing business as Cathay Lifestyle Group, Inc., is a lifestyle brand integration, marketing, design, development, education and consultant for high value sales channel of luxury lifestyle products in the leisure and entertainment sector. The Company has a portfolio of licensed brands, as well as a range of product categories. The Company’s partners include, membership clubs, golf clubs, financial services groups, nightclubs, restaurants, lounges, sports bars, duty Free Stores, e-commerce channels and direct to consumers across Asia. The Company operates three subsidiaries: Cathay Cigars of Asia Corporation, Cathay Wines & Spirits of Asia and Cathay Entertainment Services of Asia. The Company is engaged in delivering social media and marketing cigar and spirits events solutions in Asia.
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SANP operates mainly as PODWERKS. PODWERKS is a co-working space for cannabis entrepreneurs in the United States. The company helps entrepreneurs grow and sell marijuana products. The business goal is the creation of a community, so that an affordable, scalable and safe business environment is provided to customers.
“This new group will constitute an excellent platform for growth in the American cryptocurrency market and cryptocurrency mining pool, I’m excited to bring this merger to our shareholders. Both companies complement each other in all the right places. During the next few weeks, we will be evaluating many aspects of this merger, including new directorships to guide the company into the future.”
Canoe Pool is to receive 150 million shares of SANP representing 35% of the post-merger stock. SANP is also to issue an additional 50 million shares, upon achievement of certain Bitcoin mining milestones, for 40% of SANP post-merger stock.
SANP is an exciting story among small caps. With $262,000 in total assets and only $49,000 in total liabilities reported in the last 10-Q, SANP looks to keep the momentum going over the next few months.
The real move here is geared toward crypto, though. SANP and Chongqing are coming together to pursue growth opportunities around the cryptocurrency hype in Asia. The Chinese company has already announced plans to begin its first mining pods before the end of the year. The company has already experienced rapid growth with two state-of-the-art mining facilities in China. Canoe Pool has also inked a partnership with Beijing based Bitmain Technologies, which is the world largest bitcoin mining organization.
“The U.S. market presents a tremendous opportunity for us to grow into a Bitcoin mining powerhouse. We’re currently experiencing a U.S. led paradigm shift in acceptance of cryptocurrency markets through regulation. This is good news to the mining community in China looking to expand overseas,” said Canoe Pool CEO Ang Li.
Santo Mining Corp (OTCMKTS:SANP) is showing a market cap of $5.19M with 3.09B shares out. We expect this to change and evolve after the merger and we will update readers at that point. Bottom line, this is a cannabis and a crypto company heading into China with very little debt to speak of – investors should be paying attention. Sign-up for continuing coverage on shares of $SANP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SANP, either long or short, and we have not been compensated for this article.