5% weight

Not sure I really understand the structure and value here. When I see that the founder has sold an option for 90% of the equity for 40,000, I struggle to see the correllation to the hard cap. If the founder values the company in equity terms at around 45,000 its doesnt suggest a significant cashflow or profit being generated by CEDEX. It is therefore key to me to get a better understanding of the business model. If 10m of the sale at hard cap is being used for dev and going to Tech Financial then buying AIM shares maybe the better investment compared to tokens

The interrelatioship between CEDEX. Tech Financial and key stakehodlers needs to be understood here to be able to properly validate the opportunity. Its interesting that the share price of Tech Financials has gone up 300% or so in last four months. I dont understand some of the recent activty wher 40k was paid for a option to acquire 90% equity and then a couple of months later 200k paid for 2%. Maybe that helps get a new MTM valuation of the option in the AIM company accounts. Just appears without more clarity that maybe the focus is more on the AIM company than the token holders







TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today announces it has entered into legally binding heads of terms (the "Heads of Terms") with Saar Levi in respect of a to be incorporated group of companies which will operate under the name CEDEX.com ("CEDEX"). CEDEX will operate what the Company believes will be the first Blockchain based online exchange for diamonds with a long-term vision to turn the traditional diamond industry into a financial tradable asset.



Under the Heads of Terms, TechFinancials will make unsecured loan funding of US$400,000 available to the CEDEX group to develop its technology. The loan bears no interest. TechFinancials can seek repayment of the loan once CEDEX has sufficient funds and the loan therefore has no set maturity date.



In consideration for providing this initial funding, upon incorporation of the CEDEX holding company ("CEDEX HoldCo"), CEDEX HoldCo will grant the Company an option to acquire 90 per cent of CEDEX HoldCo at an exercise price of US$40,000, which may be offset against any amount outstanding under the loan. Exercise of the option is at the sole discretion of TechFinancials and the option can be transferred, sold or disposed of as TechFinancials sees fit. The option period is for three years from the date of grant.



It is envisaged that CEDEX will also utilise the Company's knowledge and expertise. In addition, the Company may provide technical development services on a fee-for-service basis to CEDEX to assist with the development of the trading platform.



The collaboration with CEDEX is a strategic development aligned with the Company's long-term vision of utilizing its expertise and considerable experience in the development of online financial trading solutions and technology systems to further expand into new product areas. It is anticipated that CEDEX will provide a novel way to invest in diamonds, aligned with the Company's vision of simplifying trading instruments.





Under the SPA, TechFinancials will make an equity investment of US$200,000 at a post-money valuation of US$10,000,000, representing 2 per cent of CEDEX’s current capital on a fully diluted basis, taking into account the exercise of the option mentioned below.



December announcement



As at the date of this announcement, TechFinancials holds an option to acquire a further 90 per cent of CEDEX at an exercise price of US$40,000 with an expiry date of three years from the date of grant (i.e. 22 October 2017), giving it a potential maximum holding of 92%.



Also a concren on compliance risk awareness of the team



B.O.TradeFinancials fined by CySEC



TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, announces that its subsidiary, B.O.TradeFinancials, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) has been fined by the Commission for the amount of 138,000 Euros. The fine was disclosed as a contingent liability in the preliminary results for the year ended 31 December 2015, announced on 26 May 2016, and relates to certain regulatory breaches. The Company has implemented measures to ensure these breaches do not recur and expect to have fully implemented any necessary corrective actions by 5 September 2016, as required by CySEC.



The Company does not anticipate that the fine will have a material impact on the results for the current financial year and still expects to meet market expectations





Downgraded team as no response from team or advisors to queries or explanations

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