Centaurus Energy Inc. has unveiled plans for a major business transformation, announcing its intention to transition from an oil and gas company to an investment firm focused on digital assets. The Calgary-based company will rebrand as Layer One Inc., marking a decisive shift toward cryptocurrency investments.
The TSX Venture Exchange has granted conditional acceptance for Centaurus's transition from a Tier 2 Oil & Gas Issuer to a Tier 2 Investment Issuer. Under its new identity, the company will concentrate on investing in physical and digital commodities, with a particular emphasis on Ether (ETH) and Solana (SOL).
CEO David D. Tawil expressed enthusiasm about the company's new direction, highlighting the strategic rationale behind focusing on ETH and SOL. "We find the global acceptance, energy efficiency, self-deflationary monetary policy, and consistent upgrade of network software of Ether to be persuasive evidence of its superiority as a digital commodity," Tawil stated.
The company plans to fund its cryptocurrency investments through proceeds from its Coiron Amargo Sur Este petroleum block royalty interest. Additionally, Centaurus aims to secure up to USD $25 million in financing through a loan agreement featuring a 7% annual interest rate and maturity in February 2028.
A notable aspect of the financing arrangement includes profit-sharing terms where 65% of gains above the interest rate will be directed to the lender. The loan will be secured by the purchased cryptocurrencies.
The company has scheduled a shareholders' meeting for February 2025 to obtain approval for the business transformation, name change, and related transactions. Following final approval from the Exchange, the company will trade under the new symbol "LAYR."
Looking ahead, Layer One Inc. may expand its investment portfolio to include other Layer 1 blockchain cryptocurrencies such as XRP, Cardano (ADA), BNB, and Avalanche (AVAX), along with associated staking activities.
This strategic pivot represents a bold move in the evolving digital asset landscape, as traditional energy companies explore opportunities in the cryptocurrency sector.