TechFinancials puts more cash into Blockchain based online diamond exchange Cedex.com


Cedex blockchain diamond exchange

After receiving more than $1 million in dividends from its China JV DragonFinancials, binary options platform provider TechFinancials Inc (LON:TECH) is continuing its diversification away from binaries by plowing some of that cash into its Cedex.com joint venture.

As we reported in October, TechFinancials set up Cedex.com as a JV with private banking expert Saar Levi. Cedex (CErtified Blockchain
Based Diamond EXchange) plans to disrupt the way diamonds are perceived. The company plans to use innovative propriety technological solutions, including emerging blockchain technology, to create an open and transparent marketplace in which anyone will be able to liquidate diamonds or invest in diamonds as a new financial asset class.

Today, TechFinancials announced that it was putting another $200,000 into Cedex, at a post-money valuation of $10 million, although that valuation is basically fictitious since TechFinancials has an option to acquire another 90% of Cedex for just $40,000.

Cedex is planning on holding an ICO in 2018, with the company’s token pre-sale scheduled for Friday, January 12. The Cedex Exchange will be powered by the Cedex Coin. This ERC-20-compatible token will be traded over the public Ethereum blockchain and will allow users to purchase diamonds on Cedex, transforming their assets into diamonds. Use of the Cedex Coin will be driven by trading volumes generated on the Cedex Exchange and the demand of the diamond ecosystem. The company plans to have the Cedex Coin listed on major exchanges (to be announced) and will be transferable to other cryptocurrencies and fiat currencies. The Cedex Coin will be the only means of payment used on the Cedex Exchange.

The full TechFinancials announcement on the matter follows:


28 December 2017

TechFinancials, Inc.

Share Purchase Agreement with Cedex Holdings Limited 

TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today announces that it has entered into a legally binding Share Purchase Agreement (the “SPA”) with Cedex Holdings Limited, a company incorporated under the laws of Gibraltar (“CEDEX”). CEDEX is the company envisaged to be formed in the Company’s announcement of 23 October 2017.

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.

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%.

It should be noted that TechFinancials’ shareholding upon exercise of the option will be subject to future dilution in the event that CEDEX should issue further shares or options after today.

asaf-lahav-techfinancials
Asaf Lahav

Commenting on the Share Purchase Agreement, Asaf Lahav, CEO, said:

Following the dividend pay-out announcement on 21 December 2017, we continue to focus our attention on supporting the most profitable parts of our business and in developing new products and technologies, in particular, the new, rapidly growing blockchain-based products and technologies market, to accelerate our efforts in building presence in these new areas.

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TechFinancials puts more cash into Blockchain based online diamond exchange Cedex.com

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