DJ Coinsilium Group Limited: Final Results for the years ended 31 December 2019
Coinsilium Group Limited (COIN)
Coinsilium Group Limited: Final Results for the years ended 31 December 2019
31-Jul-2020 / 12:18 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.
31 July 2020
COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
Final Results for the year ended 31 December 2019
STATEMENT OF THE BOARD OF DIRECTORS
Coinsilium Group Limited, the blockchain venture operator and advisor, is
pleased to announce its Final Results for the year ended 31 December 2019.
Financial summary
· The net fair value gains on financial assets in 2019 was GBP572,805
compared to a loss of GBP188,781 in 2018
· Total Comprehensive Loss* of GBP106,378 decrease from GBP1,495,424 in 2018
· Loss for the period from continuing operations GBP258,943 decrease from
GBP982,034 in 2018
· Loss per share of 0.195 pence decrease from 0.79 pence in 2018
· Financial assets at fair value through profit or loss amounted to GBP1.78m
at 31 December 2019 (31 December 2018: financial assets at fair value
through profit or loss of GBP1.4m)
· As at 31 December 2019 cash and cash equivalents amounted to GBP235,079
(31 December 2018: GBP592,171)
* Loss for the period includes loss in value of tokens over the period of
GBP257,401
The Directors present their report, together with the Group Financial
Statements and Auditor's Report, for the year ended 31 December 2019. The
comparative period is the year ended 31 December 2018.
Review of the Year
Coinsilium is now in its fifth year of operations as a listed company and
2019 was a year of transition for the Company with a major focus on
positioning the Company in Gibraltar in readiness for a more focused role as
an active venture operator in the Decentralised and Crypto Finance space as
announced post period on 13 July 2020.
When compared to 2018, the Company's advisory activity was subdued
throughout the year in review, reflecting the sharp decrease in token
issuance activity via Initial Coin Offerings ('ICOs') and Initial Exchange
Offerings ('IEOs') which were the main drivers for the new token offerings
during 2018.
Whilst our successful achievements as advisors to some of the most
substantial blockchain projects undoubtedly helped the Company to build a
strong global reputation and awareness for the Coinsilium brand, token sale
advisory work presented some material challenges along the way, in terms of
scale and sustainability. In addition, there has been an ongoing need to
actively manage the wild swings in cryptocurrency prices, which have
historically been the main denominator for much of Coinsilium's advisory
services revenue.
In anticipation of the impact this reduced activity would have on the
Company's revenues, Management proceeded to reduce overhead costs
continuously over the course of 2019. Cost reduction measures were
broad-based and also included the relocation of the Company's main
operations from London to Gibraltar, a jurisdiction which Management
believes will be in line and conducive with the Company's next stages of
development.
In November 2019, the Company announced a Memorandum of Understanding with
Devmons Management Limited, a Gibraltar registered technology management
company, to jointly launch a blockchain software and smart contract
development studio in Gibraltar, utilising the Company's wholly owned
Gibraltar registered subsidiary, TerraStream Limited. Devmons' co-founder
Matej Galvanek was appointed as Technology Advisor to TerraStream.
The value of Coinsilium's portfolio of investments appreciated somewhat in
2019, in part reflected by a successful investment round in portfolio
company Indorse, which received an investment from Brand Capital, the
strategic investment arm of India's largest media house, The Times Group, at
a valuation of USD $15m, representing a 350% uplift in the two years since
Coinsilium's initial investment at the pre-seed and seed stage. Coinsilium
maintains a 10% equity stake of Indorse.
The Company also strengthened its ties with IOV Labs Limited (IOV Labs), a
Gibraltar-registered company in which Coinsilium holds a vesting interest of
1,951,846 RIF tokens, through a collaboration agreement in Southeast Asia.
This eventually led to a more decisive rapprochement with a Strategic
Investment of GBP250,001 into Coinsilium in tandem with a MoU and the
execution of a joint venture agreement, as stated post period.
Post year end
Throughout 2019 the Company strengthened its relationship with global
Blockchain Protocol company IOV Labs. This was demonstrated by a strategic
investment of GBP250,001 from IOV Labs by way of a private placement in the
Company (subscription of 9,434,000 new ordinary shares at 2.65p per share)
announced on 28 January 2020. IOV Labs now holds 6.94% of the Company's
issued share capital.
This was followed by the execution of a Joint Venture Agreement between the
Company and IOV Labs as announced on 8 July 2020. Under the terms of the
Joint Venture agreement, IOV Labs and Coinsilium are to establish a Joint
Venture Company in Singapore to promote and commercialise IOV Labs'
products, services and technologies principally in the Asian markets to
corporations, entrepreneurs, governments and NGOs. Each shareholder will
hold 50% of the total shares of the JVC at incorporation and the JVC will be
financed by IOV Labs by way of a loan to be repaid from the future revenues
of the Joint Venture Company.
In January 2020, Coinsilium's wholly owned subsidiary TerraStream Limited,
started working on its first development contract for a DeFi-related project
in collaboration with Gibraltar registered Devmons. The project was
successfully completed and delivered in May 2020 on a revenue share basis
between TerraStream and Devmons. There is the potential for further
collaboration with Devmons based on a similar revenue share model without
the requirement for a formal joint venture agreement as originally
envisioned.
In March 2020, Coinsilium's wholly owned subsidiary, Seedcoin Limited
('Seedcoin'), completed the process of its re-domiciliation from the British
Virgin Islands to Gibraltar. Seedcoin is the entity which holds shares in
Coinsilium's portfolio companies.
For the Group's and Company's 31 December 2019 financial statements, the
COVID-19 outbreak and the related impacts are considered non-adjusting
events. There has been no significant disruption to the Group's and
Company's activities to date from COVID-19, although the Board continues to
monitor any risk.
Outlook
Despite impressive developments announced by certain of Coinsilium's
portfolio companies, particularly Indorse, with significant milestones
achieved both in terms of client wins and organic revenue generation, over
the course of 2019 it became increasingly apparent that the market, as
reflected in Coinsilium's share price, was struggling to recognise the
potential for value creation and growth within Coinsilium's investment
portfolio.
As a consequence, the Company has faced significant challenges in
maintaining the level of momentum required in order to effectively pursue
further investment opportunities on reasonable and realistic terms for the
Company and its shareholders.
At the same time there is a fast growing wave of interest in
blockchain-based Decentralised Finance ('DeFi') and Crypto Finance
applications, and the global Crypto Finance market is showing strong
month-on-month growth with active collateral on DeFi platforms now at over
USD3Bn, up over 600% year-to-date. Management believes that Coinsilium has
the right experience, network and access to the most suitable technical and
commercial partners, such as its joint venture partners IOV Labs, in order
to effectively execute a new strategy with a specific focus on pursuing
substantial opportunities in DeFi and Crypto Finance.
This has led Management to take the decision to initiate a Strategic
Business Review, details of which were announced on 13 July 2020, covering
the Company's existing operational activities and equity investment
portfolio, in order to pave the way for the Company's transition from an
investor in early-stage start-ups to a focused Blockchain, DeFi and Crypto
Finance venture operator.
The Company is currently working on several DeFi models with the aim of
launching substantial commercial solutions either independently or through
its partner network. Given the current pace of growth in the sector the
Company believes that such solutions have the potential to generate
meaningful revenue streams for Coinsilium.
Coinsilium has also commenced income generating staking operations using its
crypto reserves as active collateral, thereby utilising existing internal
resources to accelerate and enhance new revenue generation. Staking
activities are expected to increase over the coming months as the Company
looks to develop further in-house expertise to expand its operational
capabilities.
As part of the process of general business restructuring, and in line with
the ongoing Review, Coinsilium's investment holding company Seedcoin Limited
has been redomiciled from the BVI to Gibraltar in preparation for a proposed
transaction.
Initial early stage discussions with certain interested parties are ongoing
and whilst there can be no guarantee that these discussions will lead to a
value accretive transaction, it is Management's view that, given the
substantial progress made by certain companies amongst Coinsilium
investments, the Seedcoin equity portfolio holds materially greater value
than is currently recognised by the market.
(MORE TO FOLLOW) Dow Jones Newswires
July 31, 2020 07:19 ET (11:19 GMT)
Financial Review
Total comprehensive income, including fair value gains and losses on
financial assets and digital assets, reported a loss for the period of
GBP106,378 compared to a loss of GBP1,495,424 in the previous year.
Loss for the period from continuing operations was GBP258,943 (2018: loss of
GBP982,034). This loss is the result of administrative expenses of GBP639,274
during the period, an increase in net fair value of equity investments of
GBP572,805 and impairments to other current assets of GBP257,401 (loss in the
value of tokens).
As at 31 December 2019, cash and cash equivalents amounted to GBP235,079
(2018: GBP592,171).
It is important to note that the Company received an investment of
GBP250,001 post period in January 2020.
No dividends were paid or recommended to be paid during the year.
Eddy Travia
Chief Executive
30 July 2020
The Directors of Coinsilium Group Limited take responsibility for this
announcement.
For further information, please contact:
Coinsilium Group Limited www.coinsilium.com [1]
Malcolm Palle, Executive Chairman +44 (0) 7785 381089
Eddy Travia, Chief Executive + 44 (0) 7781 306903
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)
Token Advisory Services
Coinsilium advised two companies on their TGE in 2019 which were completed
before 31 December 2019:
· OasisBloc - OASISBloc, backed by DoubleChain Inc in Korea, is the first
blockchainised data platform designed for trading useful data & value in
the business world.
· Jur - Jur is a Zug-registered company developing a blockchain-based
decentralised legal ecosystem, automating the process of contract
creation, execution, enforcement and dispute resolution. Jur was the first
IEO of cryptocurrency exchange OceanEx. Jur is a blockchain project backed
by VeChain.
The Company started to advise another client at the end of 2019 and which
may complete its token issuance or a traditional fund raise in 2020:
· Kesholabs - a Kenya-based venture builder and development studio whose
primary focus is in blockchain-driven innovation and decentralised open
finance solutions. Kesholabs' Pesabase crypto payment and remittance
platform won the first Celo Camp competition. Celo is an organisation
backed by Andreessen Horowitz, a renowned US-based Venture Capital fund.
Investee Companies Update
Indorse
In June 2019, portfolio company Indorse Pte. Ltd. announced that Brand
Capital, the strategic investment arm of India's largest media house, The
Times Group, will invest up to USD $6.5m in the Singapore-based skills
verification platform Indorse. Based on The Times Group investment at a
valuation of USD $15m, the implied value of Coinsilium's 10% shareholding in
Indorse is USD $1.5m, representing a 350% uplift in the two years since
Coinsilium's initial investment at the pre-seed and seed stage.
Throughout 2019, Indorse has deployed three distinct and complementary
product lines which have been very well received by their Corporate clients
which include Fortune 500 companies such as Grab, OCBC Bank, Dell and Rolls
Royce.
The services offered by Indorse include:
· Optimising Recruitment - Evaluation and assessment of candidates' coding
skills. Clients obtain comprehensive, qualitative reports to help them
make more informed hiring decisions.
· Recruitment through Hackathons - Facilitation of Country/region-wide
hackathons. Organisation of outreach, roadshows & assessment for clients
optimising the hire and recruitment process for data engineers and
scientists.
· Future Readiness through Upskilling - Assessment driven learning.
Upskilling of workforce through a series of quality content modules with
pre and post-assessments by a panel of world-renowned industry experts.
Indorse has been working with a number of SMEs from Singapore; these range
from 20-person start-ups to 200-person recruiting agencies and, in the
Autumn of 2019, Indorse has established a UK subsidiary company with sales
representation to act as a springboard for expansion into the European and
U.S. markets.
Post Period
In 2020, Indorse launched a new remote performance management tool called
Metamorph, allowing its clients to assess the performance of their tech
staff remotely through team communication platforms like Slack. This
solution takes into account the increased number of remote work situations
due to Covid-19 social distancing measures and helps engineering managers
improve technical delivery and performance by identifying blind spots in
their software engineering team.
Indorse is co-organising with Coinsilium 'Post Covid Hack', a global online
hackathon bringing together a number of teams to create new open-source
solutions to overcome the health, economic, social and privacy challenges of
the post-Covid19 era. Official partners of the hackathon which is due to
start in August 2020 include Gibraltar Finance, IOV Labs and Singapore-based
Tribe Accelerator.
Blox
Throughout 2019, the Blox team has continued to on-board business clients
paying a monthly subscription to access Blox professional cryptocurrency
portfolio management tools. Blox allows companies access to share the
workspace with team members, auditors, CFO, and CPA to include all parties
involved in accounts, audits or taxes preparations.
Blox enables users, traders and enterprises to manage and track their
cryptocurrency portfolio with pro tools and advanced management features
like auto-sync for exchanges and wallets, and daily snapshots of the
portfolio balance and activity.
Post Period
In 2020, Blox unveiled a new branch of their operations, Blox Staking, which
is focused on providing decentralised Ethereum 2.0 staking services. As
Ethereum's plans to move from a Proof of Work consensus mechanism to a Proof
of Stake mechanism, with an announced minimum of 32 ETH (or about USD7,780
at current prices) to be staked by participants to run their own validator
nodes, Blox has identified a need to provide custody-free Eth2 staking as a
service and plan to roll out this service as soon as Ethereum 2.0 launches
its initial go-live phase (phase 0).
Elevate Health
During 2019 Elevate Health has pursued the development of their proprietary
mobile application with programmes to track and assess the changes in
lifestyle behaviour of users in preparation for the roll out of a
comprehensive pilot program in Southeast Asia and Australia.
Post Period
In 2020, Elevate Health has been reviewing solutions responding to the new
health concerns triggered by Covid-19 such as co-morbidities which tend to
increase health risks of infected patients.
Factom
In August 2019, Factom announced that the Factom Protocol was being
leveraged by a new project, the PegNet, that adds payments and store of
value utilities to the Factom Protocol. The PegNet is an independent, open
source protocol that delivers 30 protocol backed tokens pegged to real world
assets such as the U.S. dollar, Euros and other key fiat currencies as well
as hard assets, such as gold, and a number of cryptocurrencies. According to
Factom, PegNet should increase liquidity and demand for Factom's tokens.
PegNet CPU mining went live in August 2019 and it is today described as 'The
Stablecoin Network for Decentralised Finance'.
In September 2019, the U.S. Department of Energy ("DOE") granted circa
USD200,000 to Factom to protect the national power grid. According to the
DOE, the project seeks to protect the security of millions of devices.
Post Period
In June 2020, the Company announced that it had been notified by the
directors of Factom that Factom has filed for reorganisation under Chapter
11 Subchapter V to address structural issues preventing them from raising
further capital.
Factom advised that Chapter 11 Subchapter V provisions preserve the position
of the existing shareholders and structures the means of paying creditors.
The directors of Factom expected Factom to emerge from the Chapter 11
reorganisation in 60 to 90 days.
StartupToken
In 2019, StartupToken moved its main activities to Singapore where it has
been based since then. Through a Strategic Advisory Agreement signed with
IOV Labs in July 2019, StartupToken Singapore helped IOV Labs establish a
presence in the Southeast Asian market.
Post Period
In 2020, StartupToken started working on a new service, a Bitcoin storage
and payment card called Census described as 'Census Smart Card and Wallet',
an NFC powered smart bitcoin card, storing coins with military grade
protection, without compromising convenience and usability, making the
bitcoin experience as simple as it should be.
Helperbit
Helperbit is an Italian startup that uses blockchain technology to allow
people to donate digital and local currencies to charities and to people in
need all over the world, trace their donation and how it is used, offering
full transparency of economic flows.
In 2019, Helperbit pursued the development of its cryptocurrency donation
platform.
Post Period
In 2020, Helperbit's collaboration with the Red Cross in Italy to finance
medical equipment during the Covid-19 crisis via cryptocurrency donations
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