Tokens.com Corp., a technology investment company, has entered into a share purchase agreement dated April 4, 2024 (the “Share Purchase Agreement”) to acquire all of the issued and outstanding shares of Simulacra Corporation, a Nevada-based technology company. Simulacra owns and operates three subsidiaries focused on the integration of artificial intelligence (“AI”) and high quality, humanoid robots that improve the human experience through connection, learning and play. It is expected that the transaction will close on or about April 16, 2024. All amounts herein are expressed in U.S. dollars, unless otherwise stated.
Since 1997, Simulacra has been producing realistic silicone humanoid figures. In the last four years, Simulacra has generated revenues of $15.6 million (CAD$21.1 million) and Gross Profit of $12.1 million (CAD$16.3 million). The transaction is expected to be revenue accretive to Tokens.com shareholders. More information on Simulacra can be found on their website here and an investor deck can be found here.
Utilizing its intellectual property and design expertise, Simulacra is positioned to expand beyond its current sectors of entertainment and marketing into other markets that benefit from high quality, natural looking, humanoid robots, and personalized AI systems, such as healthcare (elderly care, mental health) and education. Through their customized AI and realistic robots, Simulacra is positioned to be a leader in the newly emerging AI companionship market.
“At Tokens.com, we have been at the forefront of Web3 and blockchain technologies over the last few years. Our move into AI and robotics is a natural extension of our scope. We are excited to enter this sector with industry leaders in the AI / robotics space,” said Andrew Kiguel, CEO of Tokens.com.
On the completion of the transaction, Matt McMullen, the founder and CEO of Simulacra, will join Tokens.com as President and as a director. Mr. McMullen and Shrike Holdings Inc., another Simulacra shareholder, will also become new Insiders (as defined in policies of the TSX Venture Exchange (the “TSXV”)) of the Company.
“We are on the cusp of a very exciting time, as humans and technology create new ways of interacting and connecting through AI and robotics,” said Mr. McMullen. “As we explore this new frontier, we are eager to share these opportunities in the public markets. This transaction with Tokens.com will greatly accelerate our strategic growth and market penetration.”
“While other tech companies are building robots to replace human workers in warehouses, Simulacra’s robotics serve the more immediate use case for AI and robotics: human connection, learning and play,” said Mr. Kiguel. “While most AI tools available today are filtered for content and viewpoints, Simulacra’s AI technology enables humans and robots to foster genuine connection through unfiltered, human-like conversation. We see our robots used in homes, hospitals, and even in the c-suite. We even intend on using AI to assist in board governance.”
Subsequent to the completion of this transaction, Tokens.com will provide investors with exposure to: (a) blockchain, via its cryptocurrency inventory; (b) social media, Web3 gaming and the metaverse, via its 15.3% ownership interest in StoryFire; and (c) AI and Robotics, via its 100% ownership of Simulacra.
“At Tokens.com, we invest in technologies that disrupt the norm and define the future. We have broken ground in the past through investments in metaverse real estate and crypto assets such as crypto-punks and Shiba-Inu. Our goal is to continue to tap into growth via unconventional opportunities that would be overlooked by other technology companies,” said Kiguel.