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Screenshot of a breaking news alert e-mail from Q2 2017
Less than a month after binary platform provider and operator TechFinancials Inc (LON:TECH) completed formation of a joint venture with the owners of Optionfortune Trade Limited, a company registered in Hong Kong to operate a B2C binary options trading platform focused on the Asia Pacific region, TechFinancials makes another move towards beefing up its binary options footprint in Hong Kong.
The company has just announced that it has entered into a Joint Venture (JV) agreement with Hong Kong registered IBID Holdings Limited, a company specializing in the development of high growth, online oriented companies. The JV will use the expertise of TechFinancials and IBID to accelerate the growth of one of the B2C binary options trading brands of TechFinancials with an objective of increasing the Company’s B2C market share, revenues and profitability.
Under the agreement a new business entity will be established. It will be owned 51% by TechFinancials and 49% by IBID.
Structure of the JV
TechFinancials will integrate the branded trading platform into the partner’s online marketing systems and transfer all other intangible assets related to the traded brand to the JV, following an integration period of three months that should terminate no later than May 1, 2016.
The Partner will make an initial investment of US$300,000 in the JV and will undertake to make such additional equity investments as are necessary to satisfy the working capital of the JV until the achievement of the profit milestone, measured as monthly net profit of at least $100,000 for three consecutive months. The parties have agreed that the profit milestone needs to be achieved by the JV no later than 31 July 2017.
Asaf Lahav, Group CEO of TechFinancials, said:
“The Company is very pleased to be forming this Joint Venture with IBID. The Board believes the JV will prove highly beneficial to the Group, providing sales and marketing expertise and additional working capital to grow the brand. In addition, we believe that the combination of mutual strengths of the Company and the Partner will substantially strengthen operating performance. The collaboration continues our stated strategy at IPO which is to further expand our business through partnership with key players in the online B2C space. The Board believes the JV will improve the long-term sustainability and consistency of our growth prospects while generating extra cash flow.”
You can view the official announcement from TechFinancials on the new JV by clicking here.