DJ Final Results to 31 December 2018 and Notice of AGM
Coinsilium Group Limited (COIN)
Final Results to 31 December 2018 and Notice of AGM
31-May-2019 / 14:06 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
COINSILIUM GROUP LIMITED
("Coinsilium", the "Group" or the "Company")
Final Results to 31 December 2018 and Notice of AGM
STATEMENT OF THE BOARD OF DIRECTORS
Coinsilium Group Limited (NEX: COIN), the venture builder, investor and
adviser to early-stage blockchain technology companies, is pleased to
announce its final results for the year ended 31 December 2018, a milestone
period which generated record revenues.
Strategy Highlights
The Company's "Invest and build" strategy demonstrated significant
commercial success:
· 2018 marks the first year since inception during which Coinsilium
generated annual revenues in excess of GBP1m as it recorded GBP1.68m in
revenues for the year
· Revenues mainly originated from advisory services provided to blockchain
companies planning to issue tokens via Token Generation Events ("TGE's")
· Coinsilium exercised its option to increase its equity stake into tech
skill assessment and validation network Indorse to hold 10% of the
Singapore-based company's total shares
· Expanded its portfolio of investments by participating in the seed
funding rounds of Bundle Network, a single platform facilitating the
trading of multiple digital assets via multiple cryptocurrency exchanges,
and Elevate Health, a suite of applications focused on the behavioural
health space, aiming to facilitate a number of cost-reducing solutions for
behavioural healthcare providers, insurers, health authorities, families
and employers
· The revenue-generating Advisory Service Division has been relocated to
Gibraltar, a jurisdiction which has taken a pragmatic and progressive
approach to the regulation of blockchain and crypto businesses
Financial summary
· Revenue increased by 187% to GBP1,682,373 (2017: GBP586,263)
· Total Comprehensive Loss* of GBP1,495, 424 (2017: total comprehensive
income of GBP679,633)
· Loss for the period from continuing operations GBP982,034 (2017: profit of
GBP121,345)
· Loss per share of GBP0.0079 (2017: profit per share of GBP0.001)
· Financial assets at fair value through profit or loss amounted to GBP1.4m
at 31 December 2018 (31 December 2017: available-for-sale financial assets
GBP1.1m)
· Successful fundraising totalling GBP367,125 completed in December 2018
· As at 31 December 2018 cash and cash equivalents amounted to GBP592,171
(31 December 2017: GBP1,396,070)
* Loss for the period includes loss in value of tokens over the period of
GBP973,147
The Directors present their report, together with the Group Financial
Statements and Auditor's Report, for the year ended 31 December 2018. The
comparative period is the year ended 31 December 2017.
No dividends were paid or recommended to be paid during the year.
Review of the Year
Despite strong institutional investor interest in the blockchain sector
throughout 2018, the crypto market sentiment shifted amidst sharp falls in
cryptocurrency, most notably bitcoin, and token prices.
Whilst the Company recorded its highest revenues on record of GBP1.68m for the
period, the depreciation of the value of tokens globally affected
Coinsilium's token holdings, preventing the Company showing a profit in the
period.
It is, however, important to note that the Company did not buy these tokens.
Instead, these tokens were either granted following equity investments or
received as payment for advisory services, and, moreover, the value of these
tokens may recover in the future.
The cooler reception to new token offerings in the second half of 2018
increased the overall interest for equity in blockchain ventures, and the
Company has seen a renewed interest for traditional equity funding from
startups.
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of shareholders of
Coinsilium Group Limited will be held at the offices of Peterhouse Capital
Limited, New Liverpool House, 15 Eldon Street, London, EC2M 7LD at 9.30am
BST on 1 July 2019.
Notice of the Annual General Meeting and audited accounts will shortly be
available on the Company's website at https://www.coinsilium.com/ [1]
The Directors of Coinsilium Group Limited take responsibility for this
announcement.
For further information, please contact:
Malcolm Palle, Executive Chairman +44 (0) 7785 381089
Coinsilium Group Limited
Eddy Travia, CEO +44 (0) 20 3889 4312
Coinsilium Group Limited
www.coinsilium.com [2]
Guy Miller / Mark Anwyl +44 (0) 207 469 0930
Peterhouse Capital Limited
(NEX Exchange Corporate Adviser)
Nick Emerson +44 (0) 1483 413 500
SI Capital Limited
(Broker)
Notes to Editor
About Coinsilium
Coinsilium is a venture builder, investor and advisor, supporting
early-stage blockchain technology companies and the digital token economy.
As the first ever IPO of a blockchain company in 2015, Coinsilium harnesses
its experience and wide-ranging network to invest in some of the world's
leading blockchain projects such as RSK/RIF Labs and Factom.
Coinsilium shares are traded on NEX Exchange Growth Market, the primary
market for unlisted securities operated by NEX Exchange, a Recognised
Investment Exchange under the Financial Services and Markets Act 2000.
For further information about Coinsilium, please visit www.coinsilium.com
[3]
Operating Review
While the Company initially benefited from the wave of Initial Coin
Offerings via its Advisory Services Division, the Company remains ideally
placed to benefit from the appreciation of the value of its portfolio of
equity stakes in blockchain companies.
Throughout the year, the Company continued to support its portfolio
companies and invested in two new blockchain ventures, Bundle Network and
Elevate Health. The higher revenues and levels of activity of 2018
necessitated higher expenditures and management acted quickly to limit and
reduce overheads as the market appetite for advisory services started to
decline.
Post year end
As stated in previous announcements, the Board believes that the successful
introduction of the DLT ('Distributed Ledger Technology") regulatory
framework in Gibraltar will have a profound effect on the demand for
alternative funding options in that jurisdiction and the Company therefore
decided to relocate the management of its Advisory Services Division to
Gibraltar. This strategic relocation not only reduces the Company's costs of
operations in London, but also enables Coinsilium to allocate more resources
towards investments and the provision of revenue generating activities such
as its accelerator and advisory services.
Advisory clients with a Token Generation Event either completed or to be
completed post period fall within these sectors:
Sector Advisory Clients
Energy & Infrastructure Lition - a scalable public-private
blockchain with deletable data features,
made for commercial products in
association with SAP. Lition's first
commercial application is an energy P2P
trading platform for producers and
consumers.
Healthcare Elevate Health - a suite of applications
focused on the behavioural health space,
aiming to facilitate a number of
cost-reducing solutions for behavioural
healthcare providers, insurers, health
authorities, families and employers.
Trade Finance LC Lite - a fully integrated platform
for businesses to issue, amend and
confirm Letters of Credit ('LC') that
offers institutional and private
investors the chance to fund asset based
trades.
Trading Bundle Network - a single platform to
facilitate the trading of multiple
digital assets via multiple
cryptocurrency exchanges.
Sports Data Olympia - Olympia aggregates, organizes
and monetises amateur sports data. It
also generates open gamification tools
like the "Universal Rating" for each
sport and the "Rewarding Engine". The
created value is shared with the data
providers.
E-commerce AORA - a social marketplace connecting
online shoppers to thousands of global
merchants and millions of real world
products available in the US and China,
saving time and money by seamlessly
managing the entire order and delivery
process to more than 100+ countries.
Loyalty WeWard (formerly URP) - The first mobile
application from the URP team is called
WeWard and it rewards users for distance
walked and notifies them about offers at
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retail partners in the vicinity.
Outlook
It is clear to the Directors of the Company that more and more businesses
are planning viable services and models to harness the benefits offered by
blockchain technologies. Whether start-ups or subsidiaries, many of these
entities need proven advisers and partners in order to deliver these
businesses.
As a result, we are confident of the success of and demand for our "invest
and build" strategy for blockchain firms. We take strategic stakes in
high-potential growth blockchain businesses with talented management teams
in return for an investment of our time, access to our global industry
network and connection and through the deployment of capital.
A key criteria when assessing such opportunities is that the businesses we
select are at a sufficiently early stage to genuinely recognise the
advantages we can bring to bear. Also, by selectively engaging at the 'seed'
or 'pre-seed' stage we also look to maximise the upside for any investment
we make, whilst enhancing the odds of success and supporting management to
shape and grow their business into future successful players in the
blockchain sector.
Portfolio companies, such as Indorse, are already starting to demonstrate
the effectiveness of our intensive approach and it is pleasing to see the
company now delivering on its early promise with a growing pipeline of
clients and revenues.
Our approach is also well aligned with the improving sentiment in the
cryptocurrency market since the start of 2019. The bitcoin price has moved
up from lows of around $3,200, to current levels of around US$8,700 - which
is a positive sign for the market overall.
Retail investor appetite for new tokens is not as strong as early 2018, but
recently there have been several successful listings of new tokens via
Initial Exchange Offerings ("IEO"), a new token generation event conducted
in tandem with cryptocurrency exchanges.
Whilst the market for IEO's is still at a very early stage, we are
encouraged by the level of approaches we are starting to receive for our
advisory services for future Initial Exchange Offerings. This interest for
our services has largely come about as a result of our reputation in the
industry on the back of our success in 2017 and 2018 in helping large token
offerings in the space, In addition, the Board is also seeing positive
developments within our investment portfolio companies, including an
increase in revenues, which demonstrates we are entering into a new phase of
the adoption of blockchain technology and cryptocurrencies. The Board
expects this increased adoption to result in greater demand for services at
the enterprise and retail level, and our portfolio companies are well
positioned to provide many of these services at competitive levels.
In conclusion, it is most encouraging to see how rapidly confidence appears
to be returning to the sector and, whilst the Board is optimistic that this
trend looks set to continue, it is also important to ensure we have secured
a solid enough base from which to build on this momentum and ensure that the
business is well positioned to capitalise on the growth opportunities we see
that lie ahead.
With Coinsilium's core operations now located in Gibraltar, we are not only
reducing our cost base but also positioning the business in one of the most
conducive and supportive global jurisdictions for blockchain technology in
the world.
Across the Company's investing, venture building and Advisory Services
Division, we look forward to the future with confidence. Finally, the Board
would like to once again thank all shareholders, partners and team members
for their continued support.
Financial Review
Revenue for the year ended 31 December increased by 187% to GBP1,682,373
compared to GBP586,263 for 2017. The increase is attributable to the fees
generated from increase in the Company's Advisory Services Division.
Total comprehensive income, including fair value gains and losses on
financial assets and digital assets, reported a loss for the period of
GBP1,495,424 compared to a gain of GBP679,633 in the previous year.
Loss for the period from continuing operations was GBP982,034 (2017: profit of
GBP121,345). This loss is mainly attributable to an increase in expenses for
the period, a net fair value loss in the value of equity investments of
GBP188,781 and impairments to other current assets of GBP973,147.
During the period, Coinsilium successfully raised GBP367,125 in December 2018.
As at 31 December 2018, cash and cash equivalents amounted to GBP592,171 (2017
GBP1,396,070).
Eddy Travia
Executive Director
31 May 2019
Token Generation Events Advisory Services
The Company advised 14 companies on their TGE in 2018, eight of which were
successfully completed in 2018, one completed post period end and five to be
completed in 2019. Companies that Coinsilium advised and that completed
their TGE before 31 December 2018 include:
· FANTOM - First DAG-based protocol to integrate smart contract
functionality and aiming to offer enterprise-level clients the
functionality and scalability required to accelerate mainstream adoption
of DLT.
· MedicalChain - a platform using blockchain technology to securely store
and share electronic health records.
· AORA - a social marketplace connecting online shoppers to thousands of
global merchants and millions of world products available in the US and
China, saving time and money by seamlessly managing the entire order and
delivery process to more than 100 countries.
· GBX - The Gibraltar Blockchain Exchange is a subsidiary of the Gibraltar
Stock Exchange and aims to be the world's first regulated institutional
grade exchange to support token sales.
· Dether - a peer-to-peer ecosystem of crypto buyers, sellers and physical
shops.
· RIF - RIF OS (Root Infrastructure Framework Open Standard) is a suite of
open and decentralized infrastructure protocols that enable faster, easier
and scalable development of distributed applications (dApps) within a
unified environment.
· TrustedHealth - a decentralised global network of doctors, specialists
and other healthcare service providers, connecting patients around the
world with the right expertise and services for their specific condition.
· Tutellus - the largest online educational collaborative platform in the
Spanish-speaking world using 'reward tokens' to incentivise students,
teachers and companies interacting with the platform.
Coinsilium's Token Advisory Services formed a key part in the Company's
business strategy as the Group established itself as a value-added partner
across multiple successful TGE's. TGE's are being utilised across a broad
range of industries and Coinsilium has advised companies in the education,
healthcare, trading and investing, energy and trade finance sectors.
Most of the Coinsilium advised TGEs were completed in the first half of
2018. The Company has firmly established a strong industry reputation for
supporting some notably successful TGE's such as FANTOM, ICON, GBX,
MedicalChain and RIF.
Investee Companies Update
Bundle Network
Bundle Network is an online platform connected to multiple cryptocurrency
exchanges. Through one single account, users can purchase and sell multiple
coins and tokens within seconds, at the best price available. Bundle Network
aims to provide support for the burgeoning and ever-changing world of
digital assets, easing the transaction process to trade quickly, safely, and
efficiently. Bundle Network aims to release a beta version of its platform
in Q2 2019.
In August 2018, Coinsilium announced that it had completed an investment of
US$125,000 in Bundle Network. The valuation terms of Bundle Network, whilst
known to the Company, are subject to confidentiality due to commercial
sensitivities.
Bundle Network has strengthened its collaboration with Istanbul-based
start-up accelerator RDC Smartup, which was established by software
development company RDC Partner. RDC Smartup's co-founder, Mr. Onder Uysal,
has joined the Bundle Network management team, leading on strategy and
business development.
In April 2019, the Bundle Network co-founder joined the Draper University
programme. Draper University is a Silicon Valley-based school for
entrepreneurs founded by Tim Draper. Tim Draper is a renowned venture
capitalist (past investments include Skype and Hotmail) and is known to own
large holdings of bitcoins.
Factom
Factom builds blockchain technology tools that maintain a permanent,
time-stamped record of data and with immediate application to a range of
industries, such as the mortgage industry, Internet of Things and
healthcare.
Factom Harmony harnesses the power of the Factom blockchain, combined with
SmartProvenance, to ensure the validity, integrity, history and
ownership of documents, data, files and database information.
Factom's unique model of developing individual data chains mirrors existing
record keeping models. This ensures compliance with all governmental and
industry regulations. As increasingly more items are enabled with IoT
connectivity, it is critically important to secure and safeguard IoT data.
Creating identity logs on the Factom blockchain provides data assurance,
including: protection from spoofing, elimination of traditional repeater
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