TechFinancials Inc. Agreement for sale of shareholding in a subsidiary (1950N)
16 January 2019 - 6:00PM
UK Regulatory
TIDMTECH
RNS Number : 1950N
TechFinancials Inc.
16 January 2019
16 January 2019
TechFinancials, Inc.
("TechFinancials, the "Company" or the "Group")
Binding agreement for the conditional sale of shareholding in a
subsidiary
TechFinancials (AIM: TECH) (the "Company" or the "Group"), a
fintech software provider of financial solutions including
blockchain-based digital assets and traditional financial trading
solutions for retail clients, is pleased to announce that further
to the announcement released on 1 March 2018, it has entered into
legally binding, conditional Share Purchase Agreement (the "SPA")
with Proverial Ltd, a Cyprus incorporated company (the "Buyer"), to
sell its holdings in MarketFinancials Limited ("MF"). The total
consideration for this subsidiary, which the Company no longer
considers to be core to its future business strategy, will be EURO
100,000, subject to any closing balance sheet adjustments.
Until 28 February 2018, MF, a company regulated by the
Seychelles Financial Services Authority ("SFSA"), was the provider
of market maker services and risk management to B.O.
Tradefinancials ("BOT") a subsidiary of the Company that ceased its
operation and returned its license to CySEC in May 2018. MF's only
source of income in 2018 was derived from the provision of market
maker and risk management services to BOT and, as a consequence of
the cessation of BOT's activities, MF has not traded since the end
of February 2018.
As at 30 June 2018, MF had net assets of approximately US$88,600
and was held on the balance sheet of the Group at nil carrying
cost. For the year to 31 December 2017, MF made a net profit of
approximately US$45,600.
Under the conditional SPA, TechFinancials will sell its entire
shareholding in MF to the Buyer for a purchase price of EURO
100,000, based on nil net assets in MF and which will be adjusted
accordingly on closing. The SPA is conditional inter alia on the
consent of the SFSA which is to be received by no later than 30
June 2019.
Asaf Lahav, CEO of TechFinancials said: "We sought to dispose of
the Company's holding in MarketFinancials as we view these
operations as being non-core to operations following the decision
to step away from B2C operations in Europe. The Company continues
operating and serving businesses in the Asian market where the
majority of revenue is generated. We are pleased to have now
reached a solution and intend to reinvest the sale proceeds into
building Techfinancials' new offering within the blockchain trading
sector.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information:
TechFinancials, Inc. Tel: +972 54 5233
943
Asaf Lahav, Group Chief Executive Officer
Yuval Tovias, Chief Financial Officer
Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383
5100
Colin Aaronson / Samantha Harrison / Seamus
Fricker
Northland Capital Partners Limited (Broker) Tel: +44 (0) 20 3861
6625
David Hignell / Rob Rees
NEX Corporate Adviser and Joint Broker Tel: +44 (0) 20 7469
Peterhouse Corporate Finance 0930
Fungai Ndoro / Eran Zucker
Media enquiries:
Yellow Jersey PR Limited (Media Relations) Tel: +44 (0) 7748 843
871
Charles Goodwin / Felicity Winkles
About TechFinancials
TechFinancials, Inc (AIM: TECH) is a fintech software provider
of financial trading solutions, including blockchain-based digital
assets and traditional 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 platform
incorporating a strategic joint venture focusing on solutions for
traders in the Asia Pacific region.
The Company currently holds a 2% interest and an option to
acquire a further 90 % in CEDEX, a blockchain-based on-line
exchange for diamonds, which would give TechFinancials up to 92 %
of CEDEX or 87.4 % on a fully diluted basis.
Further information can be found at
http://techfinancials.com.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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