UPDATE ON B2B AND FOOTIES LTD.
(“TechFinancials” or the “Company” or the “Group”)
Update on B2B and Footies Ltd.
As informed in the Company’s announcement from 2 December 2019 and as a result of the continuing regulatory challenges facing the Company’s traditional brokerage solutions business unit and the decline in corresponding revenues, the Company’s Board of Directors has taken the decision to give its licensees a six months termination notice according to the license agreement in place. The Company will terminate all its B2B brokerage services activities by 1 November 2020 or earlier in case all licensees will choose to terminate their agreement any time before 1 November 2020.
In addition, the Company has signed a separation agreement with Footies.Tech (the Co-founders of Footies Ltd.) in which TechFinancials shall purchase from Footies.Tech all of the Footies.Tech Shares (the “Purchased Shares”) at no cost, so that following the purchase of the Purchased Shares TechFinancials holdings will increase from 82.5% to 100% of the issued share capital of Footies Ltd. on a fully diluted basis. In return Footies.Tech will receive the basic source code of the Footies Ltd. as it existed on 31 May 2019. The ownership in the Basic Source Code will be jointly owned by the Company and Footies.Tech.
Since June 2019, the company has continued to develop the software and has added among other things the ability to serve Event Creators. These new software components that are solely owned by Footies Ltd, allows creators to establish and manage events while controlling the tickets. The Company’s management believes that Footies capabilities in controlling tickets and attendance has some advantages in coping with the Covid-19. Nevertheless, the Covid-19 crisis has affected the ticketing industry which is currently on halt, and will probably return gradually by the end of this year. That led the Company’s management to decide to reduce the pace of the development and delay the launch of this new product.
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, Group Chief Executive Officer
Yuval Tovias, Chief Financial Officer
Peterhouse Capital Limited (AQSE Growth Market Advisor and Broker) Tel: +44 (0) 20 7469 0930
Guy Miller and Allie Feuerlein