SHARE PRICE MOVEMENT, PUBLICATION OF ACCOUNTS AND TRADING UPDATE
12 June 2019
(“TechFinancials, the “Company” or the “Group”)
Share price movement, publication of accounts and trading update
TechFinancials (AIM: TECH), a fintech software provider of financial solutions including blockchain-based digital assets and traditional financial trading solutions for retail clients, notes the recent share price change and advises that it does not know of any reason for an upward share price movement.
The Company confirms that it will be announcing its audited financial results for the year ended 31 December 2018 on or around 18 June 2019.
Trading in the Company’s historical business remains challenging, largely as a result of tightening regulation and the Company will be reporting revenues of approximately US$7.6 million for the year, on which it will report an operating loss. Of total revenues, blockchain trading technology revenues, representing mainly services provided to CEDEX, a blockchain-based on-line exchange for diamonds, amounted to approximately US$3.8 million. Cash at 31 May 2019 was US$1.1 million.
The Company remains optimistic about the prospects for both CEDEX and Footies, a company that has been established to develop a blockchain ticketing venture for sports venues and teams, and looks forward to making further announcements as these businesses develop.
The Company has taken a decision to reverse entirely the gain of US$9.49m, recognised in the interim results to 30 June 2018, of its investment in CEDEX due to the volatility in the cryptocurrency market in the subsequent months since the publication of the interim results. The Company has also decided to recognise the impairment of its investment in Dragonfinancials, the Company’s 51% owned subsidiary and operator of its B2C trading platform focused on the Asia Pacific Region.
The sale of the Company’s subsidiary MarketFinancials Limited for a consideration of €100,000 (as announced on 16 January 2019) is progressing however this remains conditional on the consent of the Seychelles Financial Services Authority which is yet to be received and is required under the sale purchase agreement by 30 June 2019.
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
Peterhouse Corporate Finance (Broker) Tel: +44 (0) 20 7469 0930
Fungai Ndoro / Eran Zucker
Yellow Jersey PR Limited (Media Relations) Tel: +44 (0) 7747 788 22
Charles Goodwin / Felicity Winkles
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.
In December 2018, the Company signed a binding agreement with Footies Tech Ltd, a ticketing venture for sports venues and teams, to license its technological blockchain infrastructure and established a new company to develop and market a blockchain based ticketing solution and event economics management system. The new venture is underway and is focused on enabling sports organisations to take full control over their ticket path once issued, including secondary market trading configuration and enforcement. The ultimate vision is to fully digitise sport clubs match day experience to economically benefit both fans and football clubs.
Additionally, TechFinancials 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 techfinancials.com.