DJ Coinsilium Group Limited: Strategic Investment and IOV Labs Asia Update
Coinsilium Group Limited (COIN)
Coinsilium Group Limited: Strategic Investment and IOV Labs Asia Update
04-Dec-2020 / 07:00 GMT/BST
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according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
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COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
Coinsilium: Strategic Investment and IOV Labs Asia Update
IOV Labs to Increase Stake in Coinsilium with Worldwide Joint Venture
Agreement
London, UK, 4 December 2020 - Coinsilium Group Limited ("Coinsilium" or "The
Company") (AQSE: COIN) (OTCQB: CINGF), the Blockchain, DeFi and Crypto Finance
venture operator, is pleased to announce that it has completed a follow-on
investment agreement with IOV Labs Ltd ("IOV"), a Gibraltar registered company
and parent to RSK, the first smart contract platform secured by the Bitcoin
network and RSK Infrastructure Framework (RIF).
In tandem with the new investment agreement, the parties have agreed to expand
the geographical scope of the IOV Labs Asia Joint Venture Company (the "JVC")
from regional to worldwide.
Highlights
? IOV to invest GBP330,000, (USD439,000 equiv.), in Coinsilium by way of a
private placement, subscribing for 11,000,000 new ordinary shares of no-par
value (the "Subscription Shares") at 3p per share.
? One warrant to be issued for every two shares subscribed for, with an
exercise price of 4.5p per new ordinary share, and a life to expiry period of
two years from the admission of the Subscription Shares.
? IOV Labs will have the right to appoint one Director to the Board of
Coinsilium.
? IOV Labs holding in Coinsilium increases from 9,434,000 to 20,434,000
ordinary shares representing an interest of 13.90% of the Company's
outstanding shares, excluding warrants and treasury shares.
? Scope of IOV Labs Asia JVC to be expanded from Asia region to Worldwide.
? Funds to be used towards joint initiatives between Coinsilium and IOV and to
further the growth and development of the Company.
? Coinsilium is now fully funded for all its proposed ventures, activities and
budgeted commitments through to at least January 2022.
Disclosure: Coinsilium holds a vesting interest of 1,951,846 RIF (RSK
Infrastructure Framework) tokens. Coinsilium Chairman Malcolm Palle is a
director of IOV Labs Ltd.
Eddy Travia, Chief Executive of Coinsilium commented: "We welcome this timely
follow-on investment from IOV Labs. Both IOV Labs and Coinsilium share big
ambitions for the Company and its potential to create the next generation of
digital asset platforms as a Blockchain, DeFi and Crypto Finance venture
operator. Since IOV Labs' original investment in January this year, both
parties have been working ever closer to ensure the alignment of our mutual
interests ahead of Coinsilium's forthcoming relaunch as a focused Blockchain,
DeFi and Crypto Finance venture operator.
"Having a partner and significant shareholder with the size and scale of IOV
Labs provides Coinsilium with a solid foundation from which to launch a range
of ambitious blockchain and crypto finance ventures, targeting the markets
where we have identified the greatest potential. We also believe that the
removal of territorial constraints with regards to our joint venture
activities is a significant development and will open the way to even greater
opportunities for our common endeavours.
"The timing of this follow-on investment and the expansion of the scope of the
IOV Labs Asia JV is also particularly favourable, given the burgeoning growth
and activity we are seeing in the sector, largely driven by the resurgent
cryptocurrency markets which are now trading at levels surpassing those seen
at the end of 2017.
"We look forward to providing the market with further development updates at
this exciting and pivotal time for both the Company and shareholders."
Diego Gutierrez Zaldivar, Chief Executive of IOV Labs commented: "We are very
pleased with the progress the Joint Venture with Coinsilium has made over the
course of the year, which comes at a time where we are seeing unprecedented
interest in decentralised financial applications on the Bitcoin Network, with
its inherent efficiency and security.
With the deepening of our strategic relationship, we are now optimally placed
to capitalise on the opportunities in front of us to boost adoption in the RSK
Blockchain and RSK Infrastructure Framework (RIF) ecosystem in the Asian
region and now also, in other key markets globally".
Background to Strategic Investment and Progression of IOV Labs Asia Joint
Venture
On 28 January 2020, IOV completed an initial investment in Coinsilium of
GBP250,001, subscribing for 9,434,000 shares at 2.65p per share. In tandem
with this Investment, IOV and Coinsilium executed a Memorandum of
Understanding ('MOU') to establish a Joint Venture company ('JV Company') in
Singapore in order to promote and commercialise RSK's products, services and
technologies in the Asian markets to corporations, entrepreneurs, governments
and NGOs.
Another key objective of the JV Company is to promote the adoption in the
region of the RIF token which powers the ecosystem of solutions developed by
RSK, their partners and independent developers around the world. The MOU
further specified that Eddy Travia, Chief Executive of Coinsilium, is to be
appointed as Director of the JV Company and, as part of his role in the JV, he
will provide services to IOV which include acting as IOV's Regional Director
for Asia-Pacific. Notwithstanding this new appointment, Eddy continues to
maintain his existing functions and responsibilities as Chief Executive of
Coinsilium.
On 8 July 2020 the Company reported both the finalisation of a Joint Venture
Agreement with IOV Labs, in line with the terms of the MOU, and the formation
of IOV Labs Asia Pte Ltd in Singapore, as a 50/50 Joint Venture Company
("JVC") between Coinsilium and IOV Labs.
A further announcement was made on 13 July 2020 reporting that a Strategic
Business Review (the "Review") of the Company's operations and equity
investments was underway, the objective of the Review being to align the
Company in readiness for its participation within the JV Company and to ensure
that the Company is optimally positioned and resourced to capitalise on new
opportunities in the burgeoning Decentralised Finance (DeFi) and Crypto
Finance sector, including the development of products, solutions and services
in Crypto Lending, Crypto Staking and Stable Assets, both from within the
scope of the JV Company 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.
Expansion of Scope of JV Company
The Company reports that IOV and Coinsilium have now agreed to broaden the
scope of IOV Labs Asia to include the pursuit of commercial opportunities
globally, rather than being limited to the Asian markets alone. This will
enable IOV Labs Asia to make the best use of Coinsilium's worldwide network of
relationships and contacts.
IOV Labs Asia is expected to be operational during Q1 2021 and, subject to
COVID travel restrictions, Regional Director Eddy Travia is expected to
relocate to Singapore in advance in order to oversee the setting up of
operations.
Coinsilium Funding Position
Following this strategic investment by IOV Labs, based on minimum projected
revenue assumptions, it is now fully funded for all its proposed ventures,
activities and budgeted commitments through to at least January 2022.
Coinsilium Relaunch
The Company reported on 4 November that details of its new strategy, operating
model and strategic partnerships will be announced to the market, together
with the renewed corporate branding and website relaunch during the current
quarter. Investors may wish to review the Company's August 2020 presentation
in order to re-familiarise themselves with the relaunch roadmap and timeline.
https://coinsilium.com/investors/presentations/download?path=CoinDeFi%2B-The%2
BNew%2BCrypto%2BFinance%2BOpportunity%2BAugust%2B2020%2Bv2.pdf [1]
The Company also announced on 19 October 2020 that Coinsilium's shares
commenced cross-trading on the OTCQB Venture Market in the United States. By
joining OTCQB ahead of its relaunch, Coinsilium now has an effective platform
from which to reach a significantly larger US investor audience.
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 an agreement with top 100 blockchain
protocol company IOV Labs, to establish a 50/50 Joint Venture Company in
Singapore to promote and commercialise RSK's products, services and
technologies in the Asian markets and to promote the adoption in the region of
the RIF token which powers the ecosystem of solutions developed by RSK, their
partners and developers around the world.
Coinsilium shares are traded on the London-based 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
(MORE TO FOLLOW) Dow Jones Newswires
December 04, 2020 02:00 ET (07:00 GMT)
DJ Coinsilium Group Limited: Strategic Investment -2-
2000 under the ticker symbol "COIN", and on OTCQB Venture Market ("OTCQB") in
the United States under the ticker symbol "CINGF".
For further information please visit www.coinsilium.com [2] or follow
@CoinsiliumGroup on Twitter
About IOV Labs
IOV Labs is a Gibraltar registered company and the parent to RSK. The RSK
network is one of the most secure smart contract platforms in the world,
designed to leverage Bitcoin's unparalleled hash power via merge-mining while
extending its capabilities. It is complemented by RSK Infrastructure Framework
(RIF) a suite of open and decentralized infrastructure protocols that enable
faster, easier and scalable development of distributed applications (dApps)
within a unified environment.
For further information please visit https://www.iovlabs.org/ [3] or follow
@RSKsmart on Twitter
ISIN: VGG225641015
Category Code: MSCM
TIDM: COIN
Sequence No.: 89046
EQS News ID: 1152746
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December 04, 2020 02:00 ET (07:00 GMT)
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