Joint Venture

TechFinancials Inc.

("TechFinancials" or the "Company" or the "Group")

Joint Venture

TechFinancials (AIM: TECH), a software developer that supplies simplified trading solutions to online brokers, is pleased to announce that the Company has entered into a Joint Venture ("JV") agreement with a Hong Kong registered company IBID Holdings Limited ("IBID" or the "Partner"), a company specializing in the development of high growth, online oriented companies. The JV will leverage the expertise of the Group and IBID to accelerate the growth of one of the B2C binary options trading brands of the Group with an objective of increasing the Company's B2C market share, revenues and profitability.

Under the agreement a new business entity will be incorporated which will be owned 51% by TechFinancials and 49% by the Partner.

Structure of the JV

TechFinancials will integrate the branded trading platform into the partner's online marketing systems and transfer all other intangible assets related to the traded brand to the JV, following an integration period of three months that shall, in any event, terminate no later than 1 May 2016. The Partner will make an initial investment of US$300,000 in the JV and will undertake to make such additional equity investments as are necessary to satisfy the working capital of the JV until the achievement of the profit milestone, measured as monthly net profit of at least $100,000 for three consecutive months. The parties have agreed that the profit milestone needs to be achieved by the JV no later than 31 July 2017. Any additional equity investments made by the Partner until the achievement of the milestone will be treated as a premium to the initial US$300,000 investment, so as to ensure that the JV remains majority owned by the Group.

It has been further agreed, that in the event that the profit milestone is not reached, both parties shall negotiate, in good faith, the terms of the continuation of the cooperation between them in accordance to new terms agreed at such time, taking into account the actual performance of the JV.

Commenting on the Joint Venture, Asaf Lahav, Group CEO of TechFinancials, said: "The Company is very pleased to be forming this Joint Venture with IBID. The Board believes the JV will prove highly beneficial to the Group, providing sales and marketing expertise and additional working capital to grow the brand. In addition, we believe that the combination of mutual strengths of the Company and the Partner will substantially strengthen operating performance. The collaboration continues our stated strategy at IPO which is to further expand our business through partnership with key players in the online B2C space. The Board believes the JV will improve the long-term sustainability and consistency of our growth prospects while generating extra cash flow."

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TechFinancials was formed in 2009 to create a simplified trading solution for online brokers wanting to provide a platform for retail customers to trade in Binary Options. TechFinancials' platform is based on a proprietary pricing engine, which enables online brokers to price and market short-term Binary Options and Exotic Options. In 2014, around 18% of all deposits which are made to trade Binary Options globally were processed using TechFinancials' software. In early 2014, TechFinancials began to focus on the Asian market, securing distribution in Japan and China.

IBID Holdings Ltd. is an e-commerce company which focuses on purchasing and partnering with online oriented companies, with high growth potential, to develop and focus those companies into generating high revenue and bottom line profit, by utilizing its unique and well developed know how and experience in the e-commerce industry.