Binary options platform and brokerage group TechFinancials Inc (LON:TECH) has announced that its 51% owned joint venture which focuses on the China and APAC region, DragonFinancials, has declared an interim dividend payout of USD $2 million payable by August 20, 2017, in respect of the six month period ended June 30, 2017.
TechFinancials’ portion of the dividend will be $1,020,000, commensurate with its holding in DragonFinancials.
TechFinancials’ shares traded up by 19% on the news in Tuesday trading on the London Stock Exchange’s AIM market, closing at 6.25 pence. At that price, TechFinancials has a market cap of about £4.5 million (USD $6.0 million).
Like a lot of other companies operating in the Binary Options space, TechFinancials has had a rough run of it lately as regulators around the world tighten rules governing the industry. We had earlier reported that TechFinancials expects Revenues for the first six months of 2017 of about $7 million – 39% below the $11.4 million TechFinancials brought in during the second half of 2016. The company expects to report an EBITDA loss for 1H-2017, leading management to take an across-the-board 20% pay cut.
The new Israel Binary Options Law which – if passed later this year as expected – will outlaw the operation of any aspect of a Binary Options brokerage or platform business from the country, which has led TechFinancials to move jobs abroad, mainly to Cyprus and the Ukraine.