1 Mar 2018 07:00
01 March 2018
TechFinancials, Inc.("TechFinancials, the "Company" or the "Group")
Update regarding non-core subsidiaries
TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today provides an update on its non-core subsidiaries B.O. TradeFinancials Limited ("BOT") and MarketFinancials Limited ("MF").
As previously stated, TechFinancials is now focusing its attention on supporting the most profitable parts of the business and developing new products and technologies, in particular, its rapidly-growing blockchain-based products. The Company's wider strategy is to cease any B2C operation in the EU and to focus only on B2C trading in Asia Pacific region via its Joint Venture, DragonFinancials.
On 6 February 2018, TechFinancials announced the termination of the proposed sale of its shareholding in BOT and MF, following the decreasing levels of BOT activity during 2017, which negatively impacted overall revenue generated for the Company.
In line with TechFinancials' wider strategy, BOT has now notified the Cyprus Securities and Exchange Commission ("CySEC") of its intention to withdraw its Cyprus Investment Firm "(CIF") authorization.
BOT is in the process of notifying customers of its intention to terminate all of its activities related to operating its brand, OptionFair and subsequently, to return all client funds.
As a result of the notification of the return of the license, MF has terminated its market maker services with BOT, which was its only source of income. TechFinancials plans to sell MF, along with its license, and the Company intends to provide a further update on this process in due course.
As previously announced, for the six months ended 30 June 2017, BOT's revenues were €164,000 (For the financial year 2016: €1.38m) and the loss for that period was €105,000 compared to a loss of €231,000 for the financial year 2016. Net assets at 30 June 2017 were €244,534.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For further information:
TechFinancials, Inc. |
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Asaf Lahav, Group Chief Executive Officer |
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Yuval Tovias, Chief Financial Officer | www.techfinancials.com |
Grant Thornton UK LLP (Nominated Adviser) |
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Colin Aaronson / Samantha Harrison / Carolyn Sansom | Tel: +44 (0) 20 7383 5100 |
Northland Capital Partners Limited (Broker) |
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David Hignell/ John Howes | Tel: +44 (0) 20 3861 6625 |
Peterhouse Corporate Finance (Joint Broker) |
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Lucy Williams / Eran Zucker | Tel: +44 (0) 20 7469 0932 |
Media enquiries:
Yellow Jersey (Media Relations) |
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Charles Goodwin / Katie Bairsto | Tel: +44 (0) 7748 843 871 |
About TechFinancials
TechFinancials, Inc (AIM: TECH) is a leading innovator and supplier of financial trading solutions for retail clients. The Group operates a B2B division licensing white label trading platform solutions to online brokers. In addition, the Company operates a B2C division operating trading platform incorporating a strategic joint venture focusing on solutions for traders in the Asia Pacific region.
Further information can be found at http://techfinancials.com.