Binary options platform provider and operator TechFinancials Inc (LON:TECH) has announced that it will receive an additional $1.5 million dividend payout from its DragonFinancials joint venture subsidiary, which focuses on the Asia Pacific region.
This follows the $1 million dividend which TechFinancials received from DragonFinancials last November.
We had reported last September, when TechFinancials announced its (surprisingly good) first half 2016 financial results, that the company had established DragonFinancials Limited, a partnership with the owners of Optionfortune Trade Limited, a B2C binary options trading platform focused on the Asia Pacific region, which has been successfully operating from the beginning of the year.
TechFinancials’ shares were hit hard earlier this month, plunging 30% when it was disclosed that its largest B2B client, binary options broker 24option, was no longer going to use the TechFinancials binary options platform.
The TechFinancials announcement on the latest dividend, including a quote on the matter from CEO Asaf Lahav, reads as follows:
Final dividend pay-out by Company’s subsidiary DragonFinancials
TechFinancials expected to receive an additional US$1,530,000
TechFinancials Inc. (AIM: TECH), a leading technology provider to financial trading brokers, is pleased to announce a final dividend pay-out by its subsidiary, DragonFinancials, the B2C trading platform focused on the Asia Pacific region.
The board of directors of DragonFinancials have declared a final dividend pay-out of US$3,000,000, payable by 15 March 2017, in respect of the year ended 31 December 2016. Out of the total pay-out amount the Company is expected to receive US$1,530,000 in line with its 51% holding in the subsidiary.
This follows the Company’s announcement on 28 November 2016 that DragonFinancials declared an interim dividend pay-out of US$2,000,000, of which TechFinancials received US$1,020,000.
Commenting Asaf Lahav, CEO of TechFinancials said:
We are delighted by the final dividend payout by DragonFinancials which takes the full dividend payout for FY2016 received by TechFinancials to $2,550,000. This underlines that performance in the Group’s B2C division focused on the Asia Pacific region was solid in 2016. We remain focused on ensuring this division continues to perform well in 2017.