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by Stockwatch Business Reporter

The TSX Venture Exchange dropped 4.16 points to 609.24 on Friday to close out the U.S. election week. Alex Tapscott's Scaling Capital 1 Corp. (SKAL.P: $0.05) has signed a definitive agreement for its qualifying transaction, the acquisition of Matador Gold Technologies Inc. of Ontario. The resulting company plans on making a cellphone app that will allow users to buy and sell physical gold instantly, a business it touts as "disrupting and modernizing" the gold buying process. The deal will include a private placement of up to $4.5-million, and will result in Toronto's Donato Sferra holding 18 per cent of the resulting issuer.

The definitive agreement, which comes about 20 months after Scaling Capital listed as a shell, will see Scaling Capital merge with Matador and the resulting company continue to use the Matador name (albeit with a slight variation, to Matador Technologies Inc.). Existing shareholders of Scaling, many of which paid 10 cents in the company's initial public offering, will own about 8.5 per cent of the resulting issuer. The company expects to have 88.3 million shares issued, assuming it raises the full $4.5-million associated with the QT.

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