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Investee company enters into its first broker licence agreement with Shard Capital
Teathers Financial PLC, the AIM listed investment company has said that its wholly owned investee company, Teathers Financial Software Limited has signed its first broker licence agreement with FCA regulated Shard Capital Partners LLP to launch the first crowd equity App powered by its proprietary technology platform.
Overview:
· First commercial agreement to utilise TFSL’s proprietary IP and technology
· Both parties believe the technology has the potential to revolutionise the crowd equity arena for private investors and fund raisers dealing in listed companies
· The technology enables qualified users to buy shares, across all major mobile platforms, in initial public offerings and placings as well as on-going financial information to track investments and sectoral trends
· As an FCA regulated entity, Shard Capital will provide the regulatory compliance features and custodial support to users of the App
· Partnership brings together two parties sharing a commitment to level the playing field for retail investors by offering them institutional offerings at institutional prices
· Revenue model based on a management fee and revenue sharing agreement
· TFSL plans to roll out the technology and white labelled Apps on an on-going basis and discussions with additional parties are underway
Teathers Executive Chairman Jason Drummond said, “This is a milestone agreement for TFSL. We have invested significant time and capital in building a mobile solution that delivers a level playing field for private investors in financings while also providing the user with up to date stock, sector and market information. TFSL’s Technology powers an App which is downloadable on all major platforms, providing private investors with equal opportunities through the use of technology. We are excited to have a signed our first licence agreement with Shard and look forward to a successful relationship.”
Shard Capital CFO Toby Raincock said, “The Teathers Technology will facilitate the provision of a ground breaking mobile application that supports our on-going commitment to offer retail investors access to institutional offerings, at institutional prices. We anticipate this application will simplify access to financial markets for a new type of investor and see this as another major step in the development of the regulated investor arena for private individuals.”
The Agreement marks the first white label agreement for its technology platform. This has been developed to power mobile Apps that the Company believes will revolutionise the way in which brokers and fund raisers connect with private investors.
The App, which is free to download from iTunes Connect (Apple), Google Play and Android, will allow Shard Capital to seamlessly offer its fundraising initiatives to its clients. By grouping private investors together, the platform allows placings and IPOs to be offered on the same terms and at the same discounted price per share as institutional investors typically receive when participating in quoted company placings, all under a FCA regulated environment. The parties envisage the first App will be launched imminently and further information is available at www.teathers.com.
The platform also provides an Investor Channel which showcases video and audio media outputs. This provides the user with access to insightful information about listed companies and investment topics. Content includes video and audio interviews from company directors, as well as general educational pieces from sectoral professionals. The use of video and audio enhances the users’ experience by informing them about companies’ business strategy and development in an easily digestible format. It also provides companies looking to raise capital with the ability to increase their profile and transparency by enabling users to access this visual information.
Additionally, the news service allows the user to add any RSS feed they wish, to enable them to track their stocks or areas of interest. A selected few news feeds have been carefully chosen to get users started and to gain an understanding of the site’s capabilities.
Under the terms of the licence agreement, TFSL has granted Shard Capital a licence for use of the TFSL Technology/software for an initial 12 month period. Shard Capital have an exclusivity agreement whereby TFSL will not sign any further licensing agreements for 120 calendar days. In return Shard Capital have agreed to pay a licence fee as well as a monthly royalty fee based on a percentage total of any gross revenues made by Shard Capital from the Apps use.
It is anticipated that the Agreement will create a revenue stream for TFSL and will support the Company’s main investing activities under its Investing Policy.
