Coinsilium Group Limited (COIN)
Coinsilium Group Limited: JV Agreement with IOV Labs and Strategic Business
Review
08-Jul-2020 / 07:00 GMT/BST
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COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
Coinsilium: Joint Venture Update
Execution of Joint Venture Agreement with IOV Labs and Strategic Business
Review
London, UK, 8 July 2020 - Further to its announcement of 28 January 2020,
Coinsilium Group Limited (AQSE:COIN) is pleased to provide an update
regarding its Joint Venture Agreement (JVA) with IOV Labs Limited (IOV) to
establish a Joint Venture Company (JVC) in Singapore and notification of a
Strategic Business Review of the Company's operations and investments.
IOV is a Gibraltar registered company and parent to RSK, the developers of
the first smart contract platform secured by the Bitcoin network in which
Coinsilium holds a vesting interest of 1,951,846 RIF tokens. IOV is a global
Blockchain Protocol company with more than one hundred employees and
contractors worldwide, focused on developing various implementations of the
RSK Smart Contract Network, RIFOS and Taringa! platforms. As announced on 30
September 2019, Taringa! was acquired by IOV and is one of the largest
Spanish language social media apps with a 30 million strong social network
and over 1,000 active online communities.
Highlights
? IOV Labs Limited and Coinsilium Group Limited have executed a Joint
Venture Agreement to form a Joint Venture Company in Singapore.
- Southeast Asia is one of the world's fastest growing internet economies
and on track to reach $300 billion gross merchandise value by 2025
? Each shareholder will hold 50% of the total shares of the JVC at
incorporation.
- JVC will be financed by IOV by way of a loan which is to be repaid from
the future revenues of the JVC
? Eddy Travia, Coinsilium's CEO, to represent Coinsilium as a Director of
the JVC.
? The business of the JVC will be to promote and commercialise IOV's
products, services and technologies, principally in the Asian markets.
Coinsilium CEO Eddy Travia commented: "This is the start of an exciting new
journey of collaboration for Coinsilium with one of the world's leading
blockchain networks. The management of both Coinsilium and IOV share the
common vision that blockchain technology can change society for the better
and we are already starting to see numerous beneficial blockchain
applications manifesting in the real economy, especially in Southeast Asia's
fast- growing economies where our JVC will operate.
We look forward to playing our part in the adoption process and supporting
the large-scale implementation of the RSK blockchain and RIF solutions in
core industries such as energy, transportation, natural resources, finance,
health care and commerce. This joint venture represents a major step in
Coinsilium's development and is set to be one of the key drivers of value
creation for Coinsilium's shareholders in the years to come. We look forward
to providing the market with regular updates as the joint venture takes
shape and progresses."
Diego Gutierrez Zaldivar, CEO of IOV, commented: "We are very excited about
our joint venture with Coinsilium in Asia. Asia has always been a key market
for us, as the immense innovation in the region will be integral to
realising blockchain's full potential. Our strategic partnership with
Coinsilium will enable our platforms to boost their ecosystem, accelerating
progress toward our shared goal of increased adoption of blockchain
technology in the region. Working together with Coinsilium, IOV will
establish an important footprint in the region, forge new relationships with
key partners and solidify the long-term success and development of the RSK
blockchain which in turn will help to generate RSK blockchain mass
adoption."
Execution of Joint Venture Agreement with IOV
The Company announced on 28 January 2020 that it had completed a Strategic
Investment Agreement with IOV to invest GBP250,001 in Coinsilium by way of a
private placement in the Company at 2.65p per share. IOV now holds an
interest of 6.94% in Coinsilium. In tandem with the Strategic Investment
Agreement, IOV and Coinsilium executed a Memorandum of Understanding ('MOU')
to establish a JVC in Singapore to promote and commercialise IOV's products,
services and technologies principally in the Asian markets to corporations,
entrepreneurs, governments and NGOs. Another key objective of the JVC is to
promote the adoption in the region of the RIF token which powers the
ecosystem of solutions developed by IOV and its partners and developers
around the world. The MOU further specified that Eddy Travia, CEO of
Coinsilium, is to be appointed as director of the JVC and as part of his
role in the JVC, he will provide services to IOV which include acting as
IOV's Regional Director for Asia-Pacific.
The Company is pleased to announce that the Joint Venture Agreement ('JVA')
with IOV has now been finalised and executed and the company formation
process in Singapore is currently underway. Further documentation including
a Loan Agreement and Services Agreement with the JVC are in the final review
process and subject to execution, at which point the Company will provide a
further update to the market.
Asia Region Blockchain Market
Southeast Asia is one of the world's fastest growing internet economies.
Citing Google & Temasek / Bain, e-Conomy SEA 2019 [1], there were more than
360 million internet users in Southeast Asia as of 2019. The Southeast Asia
internet economy has hit $100 billion gross merchandise value and is on
track to reach $300 billion by 2025. E-commerce, logistics and financial
companies need to adapt to this fast growth of digital services and payments
- digital payments reached $600 billion gross transaction value in 2019 and
on track to exceed $1 trillion by 2025 (1). This makes Southeast Asia a
particularly fertile market for the provision of the RIF Enterprise and RIF
Open Finance solutions developed by IOV.
(1) Source: Google & Temasek / Bain, e-Conomy SEA 2019
https://www.bain.com/insights/e-conomy-sea-2019/
Strategic Business Review
This announcement today represents a transformational event for Coinsilium
and presents a unique commercial opportunity to create meaningful value for
shareholders. It is also recognised that Coinsilium's commitment to the JVC
will require a commensurate rebalancing and shift in focus in terms of the
Company's existing scale, operational capacity and resources.
In order to address these challenges, the Company will shortly announce the
commencement of a Strategic Business Review process to cover Coinsilium's
operations and investments.
The ultimate objective will be to see the Company best positioned to
maximise its potential, both from within the scope of its joint venture with
IOV and also from Coinsilium's operational base in Gibraltar, which is fast
becoming a pre-eminent global regulatory jurisdiction for innovative
financial technology, including cryptocurrencies. The timing of this review
is also particularly pertinent, given the accelerating pace of growth within
the Decentralised Finance (DeFi) and Crypto Finance sectors.
A comprehensive overview of the Strategic Business Review process will be
provided to the market within the next 7 days.
The Directors of Coinsilium Group Limited take responsibility for this
announcement.
For further information, please contact:
Coinsilium Group Limited +44 (0) 7785 381 089
Malcolm Palle, Executive Chairman www.coinsilium.com
Eddy Travia, Chief Executive
Peterhouse Capital Limited +44 (0) 207 469 0930
Guy Miller / Mark Anwyl
(AQSE Growth Market Corporate Adviser)
SI Capital Limited +44 (0) 1483 413 500
Nick Emerson
(Broker)
Notes to Editor
About Coinsilium
Coinsilium is a focused Blockchain, DeFi and Crypto Finance venture
operator. As the first ever IPO of a blockchain company in 2015, Coinsilium
has harnessed its experience and wide-ranging network to invest in leading
blockchain projects such as RSK/IOV Labs, Indorse and Blox.
In July 2020 Coinsilium executed a Joint Venture Agreement with global
blockchain protocol company IOV, to establish a 50/50 Joint Venture Company
in Singapore to promote and commercialise IOV's products, services and
technologies, principally in the Asian markets and to promote the adoption
in the region of the RIF token which powers the ecosystem of solutions
developed by IOV, and its partners and developers around the world.
Coinsilium shares are traded on the AQSE Growth Market, the primary market
for unlisted securities operated by Aquis Stock Exchange, a Recognised
Investment Exchange under the Financial Services and Markets Act 2000.
For further information please visit [2]www.coinsilium.com [2] or follow
@CoinsiliumGroup on Twitter
About IOV Labs Limited
IOV [3] is focused on developing the platforms needed for a new
blockchain-based financial system that will enable worldwide financial
inclusion and bridge the gap between these nascent technologies and mass
adoption.
The organization is currently developing various implementations of the RSK
Smart Contract Network [4], RIF [5] and Taringa [6]'s platforms. The RSK
Network is the most secure Smart Contract platform in the world, as it
relies on Bitcoin's hash power. RIF is a suite of open and decentralized
infrastructure protocols that enable faster, easier and scalable development
of distributed applications (dApps) within a unified environment to enable
mass adoption of Bitcoin and RSK and Taringa! - Latin America's largest
Spanish speaking social network with 30 million users and 1,000 active
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