TechFinancials Inc. Binding Heads of Terms - Loan and Option Agreement (2651U)
23 October 2017 - 5:00PM
UK Regulatory
TIDMTECH
RNS Number : 2651U
TechFinancials Inc.
23 October 2017
23 October 2017
TechFinancials, Inc.
("TechFinancials, the "Company" or the "Group")
Binding Heads of Terms for a
Loan and Option Agreement with the shareholder of CEDEX
TechFinancials (AIM: TECH), a leading technology provider to
financial trading brokers, today announces it has entered into
legally binding heads of terms (the "Heads of Terms") with Saar
Levi in respect of a to be incorporated group of companies which
will operate under the name CEDEX.com ("CEDEX"). CEDEX will operate
what the Company believes will be the first Blockchain based online
exchange for diamonds with a long-term vision to turn the
traditional diamond industry into a financial tradable asset.
Under the Heads of Terms, TechFinancials will make unsecured
loan funding of US$400,000 available to the CEDEX group to develop
its technology. The loan bears no interest. TechFinancials can seek
repayment of the loan once CEDEX has sufficient funds and the loan
therefore has no set maturity date.
In consideration for providing this initial funding, upon
incorporation of the CEDEX holding company ("CEDEX HoldCo"), CEDEX
HoldCo will grant the Company an option to acquire 90 per cent of
CEDEX HoldCo at an exercise price of US$40,000, which may be offset
against any amount outstanding under the loan. Exercise of the
option is at the sole discretion of TechFinancials and the option
can be transferred, sold or disposed of as TechFinancials sees fit.
The option period is for three years from the date of grant.
It is envisaged that CEDEX will also utilise the Company's
knowledge and expertise. In addition, the Company may provide
technical development services on a fee-for-service basis to CEDEX
to assist with the development of the trading platform.
The collaboration with CEDEX is a strategic development aligned
with the Company's long-term vision of utilizing its expertise and
considerable experience in the development of online financial
trading solutions and technology systems to further expand into new
product areas. It is anticipated that CEDEX will provide a novel
way to invest in diamonds, aligned with the Company's vision of
simplifying trading instruments.
Further information about CEDEX is set out below and will be
available on its website www.cedex.comthat will accessible by the
public in early November 2017.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information:
TechFinancials, Inc.
Asaf Lahav, Group Chief Executive
Officer
Yuval Tovias, Chief Financial www.group.techfinancials.com
Officer
Grant Thornton UK LLP (Nominated
Adviser)
Colin Aaronson / Samantha Harrison Tel: +44 (0) 20
/ Carolyn Sansom 7383 5100
Northland Capital Partners Limited
(Broker)
Patrick Claridge/ David Hignell/ Tel: +44 (0) 20
John Howes 3861 6625
Peterhouse Corporate Finance (Joint
Broker)
Lucy Williams / Eran Zucker Tel: +44 (0) 20
7469 0932
Media enquiries:
Yellow Jersey (Media Relations)
Felicity Winkles / Charles Goodwin
/ Katie Bairsto Tel: +44 (0)
7748 843 871
Background to CEDEX
CEDEX will be founded by a team of individuals with extensive
knowledge and experience of the diamonds industry, online solutions
and financial markets. CEDEX.com will be developed as a global
Blockchain based exchange, which focuses on using innovative
technology to bridge the gap between the traditional diamond
industry and the financial markets. CEDEX seeks to engineer a
ground-breaking change, enabling people to liquidate and invest in
diamonds in a transparent and secure way.
The new exchange's main revenue stream will be based on diamond
listing fees and transaction fees based on trades being executed in
the exchange.
The CEDEX exchange will be designed to address three obstacles
in transforming diamonds into a financial asset: Transparency,
Liquidity and Fungibility. To solve these obstacles CEDEX will
develop a set of proprietary algorithms, the "DEX". The DEX will
compile the gemological data, diamond financial indices and global
inventory to rank each diamond's price relative to its theoretical
market value. In addition, CEDEX will utilise Blockchain technology
to tokenize diamonds enabling both diamond holders looking to
liquidate their positions and investors seeking to protect their
assets to include diamonds as a financial investment.
CEDEX is also evaluating, subject to legal advice, the viability
of the holding company of the CEDEX group creating and selling a
new digital token, to be formed for this purpose, using Blockchain
technologies in an amount of $18M-$30M during Q1 2018. The receipts
of any token sale will be used by the CEDEX project mainly for
development, marketing, legal and regulatory compliance, and
operation of the project. CEDEX will not offer equity or any other
rights in CEDEX (or any of its group companies) to buyers under the
token sale but rather sell digital tokens which represent the basic
unit of value to be used on the CEDEX.com exchange.
About TechFinancials
TechFinancials plc (AIM: TECH) is a leading innovator and
supplier of financial trading solutions for retail clients. The
Group operates a B2B division licensing white label trading
platform solutions to online brokers. In addition, the Company
operates a B2C division operating trading platforms worldwide and
incorporating a strategic joint venture focusing on solutions for
traders in the Asia Pacific region.
Further information can be found at
http://techfinancials.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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