TRADING UPDATE AND REVIEW OF INVESTING ACTIVITIES
16 October 2020
(“TechFinancials” or the “Company” or the “Group”)
Trading Update and Review of Investing Activities
TechFinancials Inc. (AQSE: TECH), a fintech software provider of financial solutions including blockchain-based digital assets and traditional financial trading solutions for retail clients, today announces an update on its current investing activities, and a review of its future investing involvement in the technology sector.
As informed in the Company’s announcement of 4 May 2020, the Company’s brokerage services relating to B2B will terminate under its six month notice termination period. It is anticipated that all activities pertaining to this investment will be terminated by 1 November
Further to the announcement of 4 May 2020, the Group has decided to close this investment out due to the continuing negative impact of Covid-19. It is noted that TechFinancials signed a separation agreement, referred to in the May 2020 announcement, and under the separation agreement, the Company owns 100% of Footies intellectual property. Covid-19 has severely impacted the events market, with the sales of tickets to events severely disrupted, and anticipated to be severely disrupted well into 2021. TechFinancials will currently halt the development and marketing of the Footies solution.
In the past months TechFinancials and Cedex were involved in several business development activities that progressed but did not mature to any signed agreements. Given the Group’s current financial status and the current atmosphere in the diamond and financial industries, the Company does not believe it will be able to realise Cedex’s vision to issue the first Diamond ETF on its own. Therefore, the Company has decided to halt this activity.
Review of Investing Activities
The Company is aiming to streamline its trading structure through the closure of all its subsidiary companies which will assist in driving the Company’s running costs down. To further reduce running costs, all employment agreements will be terminated. Eitan Yanuv will continue to act as the Company’s Non-Executive Chairman, and Asaf Lahav’s role will immediately change from being the Company Chief Executive Officer, to Executive Director. The role changes are to reflect the nature of the Company’s investing activities, and as the Company develops, the board will review its corporate governance obligations. The directors are committed to maintaining high standards of corporate governance, and propose, so far as is practicable given the Company’s size and nature, to comply with the QCA Code. Due to the size and nature of the Company, audit and risk management issues will be addressed by the directors as a whole, rather than by separate committees.
With the Company structure streamlined and costs reduced, the Company aims to continue an Investment Strategy in the technology sector, as has already begun a review of potential opportunities in the sector. The Board believe that their combined strength and knowledge in the technology sector will serve the Company well when deciding on potential investment opportunities.
The Company intends to use a combination of cash and equity to acquire stakes in companies. Further updates of investing activities will be made in due course.
The directors of the Company accept responsibility for the contents of this announcement.
For further information:
TechFinancials, Inc.Tel: +972 54 5233 943
Asaf Lahav, Executive Director
Eitan Yanuv, Non-Executive Chairman
Peterhouse Capital Limited (AQSE Growth Market Advisor and Broker) Tel: +44 (0) 20 7469 0930
Guy Miller and Allie Feuerlein