LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
Binary options brokerage and blockchain technology company TechFinancials Inc (LON:TECH) has announced it that has issued 12.4 million to its joint venture partners in its China binary options business, DragonFinancials.
DragonFinancials has been the main revenue generator for TechFinancials for the past year-plus, with the company shutting down its own OptionFair binary options brand and starting to pour money into a new Blockchain based online diamond exchange, Cedex.com.
TechFinancials had the option of either making a cash payment of $4.5 million to the shareholders of OptionFortune (see more details below), or the 12.4 million shares. Given that the share price used to calculate the number of shares to be issued was TechFinancials’ IPO price of £0.27, instead of the company’s current share price of about £0.16, it made a lot more sense to issue the shares (worth $2.8 million) instead of the $4.5 million in cash.
Under the to the JV agreement with OptionFortune, TechFinancials is required to issue shares (or make cash payments) to the OptionFortune shareholders, depending on the financial results of the DragonFinancials JV business for the year 2017. Based on the audited financial statements of DragonFinancials for the year 2017, DragonFinancials achieved financial results requiring the company to pay $4,527,927 as consideration to the OptionFortune shareholders.
Application has been made for the 12,406,352 ordinary shares, comprising 9,304,764 shares issued to Mr. Shen Chaohui, 1,860,953 shares issued to Mr. Ma Liangliang and 1,240,635 shares issued to Mr. Ke Endian which rank pari passu with the company’s existing issued ordinary shares, to be admitted to trading on the AIM Market of the London Stock Exchange.
Following admission, the issued share capital of the company will comprise 84,980,979 Ordinary Shares with voting rights attached (one vote per share).