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DJ Coinsilium Group Limited: AGM Statement

 Coinsilium Group Limited (COIN) 
Coinsilium Group Limited: AGM Statement 
01-Jul-2019 / 07:13 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
                          COINSILIUM GROUP LIMITED 
                      ("Coinsilium" or the "Company") 
                               AGM Statement 
London, UK, 1 July 2019 - Coinsilium Group Limited (NEX:COIN), the 
blockchain venture builder, advisor and investor that finances and manages 
the development of early-stage blockchain technology companies announces 
that at its Annual General Meeting, which is to be held at 9:30am today, 
Malcolm Palle, Chairman, will make the following statement: 
"In 2018 the Company recorded its highest revenues on record of GBP1.68m for 
the period, though the depreciation of the value of cryptocurrencies and 
tokens globally affected the value of Coinsilium's token holdings, 
preventing the Company showing a profit in the period. 
"Since the end of 2018 we have seen a marked improvement in investor 
sentiment in the blockchain technology sector as the wider cryptocurrency 
markets continue to recover and gain strength. 
"It is not always easy for investors to appreciate the scale of the 
opportunity that blockchain technology presents; given that the markets are 
usually focused on the day to day price movements of cryptocurrencies as a 
determining factor of value. However, we continue to believe the rapidly 
growing blockchain sector offers an opportunity for companies such as 
Coinsilium that is at least on par with or possibly even greater than the 
early days of the internet which spawned the boom in the 1990's. 
"The surprisingly rapid pace of development of some of the companies within 
our investment portfolio also leads us to believe that we may start to see 
some material valuation uplifts, sooner than would otherwise have been 
expected. One example of this rapid growth cycle can be seen with Indorse's 
journey from concept to revenue generation, through to agreements from major 
corporate clients in just two years. Coinsilium owns a 10% equity stake in 
the Singapore-based blockchain powered skills verification platform, having 
invested SG$450,000 at the seed stage in 2017/18. As announced on 19 June 
2019 , Indorse has now secured an inward investment deal of up to US$6.5m 
from Brand Capital, the strategic investment arm of India's largest media 
house, The Times Group. This includes an initial investment of US$2m as a 
convertible note, with a valuation of US$15 million and an option of a 
further tranche of US$4.5m. The implied value of Coinsilium's 10% 
shareholding in Indorse is now US$1.5m, representing a 350% uplift in the 
two years since Coinsilium's initial investment. The significance of this 
investment round should not be understated as it sets Indorse on a 
fast-track pathway to material revenue generation and growth. 
"Likewise, IOV Labs (formerly RIF Labs), following its token for equity swap 
and private token sale as announced on 19 November 2018, is now rolling out 
its global business based on the RSK technology and infrastructure at an 
accelerated pace. Another Coinsilium portfolio company making significant 
progress is Blox (formerly Coindash), a crypto tracking, management and 
accounting platform which has signed up a long list of established crypto 
companies as paying clients of its software-as-a-service solutions. Blox 
helps crypto exchanges, crypto miners, SMEs and corporates with 
cryptocurrency transactions and balances to alleviate the complexities of 
crypto accounting and bookkeeping. 
"The recovery in the cryptocurrency markets, in addition to the major 
announcement made in June 2019 by Facebook to deploy its own cryptocurrency 
'Libra' with the support of an impressive line-up of major corporations such 
as Mastercard, Visa, Paypal, Uber, Stripe and Vodafone, has created 
significant awareness and mainstream recognition of cryptocurrencies and the 
underlying blockchain technology. 
"We believe that this trend of increased awareness, mainstream recognition 
and growing institutional interest is now set to accelerate and the activity 
we are seeing within our own investment and advisory pipeline gives us 
confidence that the Company is now entering a highly productive period. 
"On 13 March 2019 we announced the incorporation of Coinsilium (Gibraltar) 
Limited ("CGL") as a wholly owned Gibraltar registered subsidiary of the 
Company. Going forward we expect our newly established operations in 
Gibraltar to be pivotal to our activities in the advisory space. On 4 June 
2019, we announced our first Initial Exchange Offer ('IEO') advisory client 
OASISBloc and we now have a growing pipeline of new clients that we are 
currently working to on-board. Gibraltar provides us with a conducive 
regulatory framework in which to operate which in turn provides us with 
confidence for our own business continuity. 
"We are also closely following global industry trends and expect a healthy 
pipeline for our advisory work to emanate from East Asia, as a region, 
particularly with regard to IEOs. We also anticipate significant synergies 
with CGL's activities and those of StartupToken, a global start-up 
hyper-accelerator in which Coinsilium holds a 30% equity position. 
StartupToken has successfully organised roadshows for its accelerator and 
advisory clients in East Asia and has now established a base in Singapore, 
one of the world's most active blockchain hubs. In view of the levels of 
activity in the region Coinsilium's Chief Executive Eddy Travia will now be 
spending more time in South East Asia and we will be making further 
announcements in this regard in due course. As previously announced, 
Coinsilium's Executive Chairman Malcolm Palle has now fully relocated to 
Gibraltar and is overseeing Coinsilium's operations in the jurisdiction. 
"In Summary, with growing mainstream awareness and the positive industry 
trends we are witnessing, coupled with the increasing levels of activity 
within our own investment portfolio and advisory client pipeline, it gives 
us confidence that material uplifts in valuation can be achieved. In the 
previous bull cycle we saw our share price run from lows of 1p to over 20p 
reflecting the cyclical and volatile nature of these markets. 
"Coinsilium's shares are currently trading on the NEX Exchange at around 
3.75p which implies a market capitalisation for the Company of circa GBP4m. 
Whilst this price is higher than the recent market lows, in management's 
view it still materially undervalues the Company, given the existing value 
and potential we see within our advisory business and the quality of some of 
the high growth investments in our portfolio. This disparity becomes even 
more pronounced when one considers some of the valuations we are witnessing 
in the deal space, predominantly with unlisted blockchain companies. 
"Coinsilium was established in 2014 and listed on the NEX Exchange in 
December 2015 as the first blockchain focused Initial Public Offering 
('IPO') globally, with the objective of providing investors with exposure to 
high quality investment opportunities in the then emerging blockchain 
technology sector. 
"In light of this, the board is determined to ensure that a more realistic 
market valuation for Coinsilium is established, enabling us to take full 
advantage of our leading market position and fulfil our ambition and stated 
objective of delivering asymmetric returns to our shareholders. 
"With the performance of our investments and our advisory services division 
to date, we have continued to demonstrate our prowess in identifying winners 
and secure meaningful commercial advisory deals with some of the biggest 
names in the industry. Now, with the sector recovery in full swing, we look 
to the future with renewed confidence and look forward to releasing news to 
the market which, like the recently announced deal with Indorse, we believe 
will clearly demonstrate the real value and potential we see within the 
advisory business and our investment portfolio. 
"We would like to take this opportunity to thank our shareholders for their 
continued support and engagement at this exciting time for the Company." 
The Directors of Coinsilium Group Limited take responsibility for this 
For further information, please contact: 
Malcolm Palle, Executive Chairman +44 (0) 7785 381089 
Coinsilium Group Limited 
Eddy Travia, CEO +44 (0) 20 3889 4312 
Coinsilium Group Limited [1] 
Guy Miller / Mark Anwyl +44 (0) 207 469 0930 
Peterhouse Capital Limited 
(NEX Exchange Corporate Adviser) 
Nick Emerson +44 (0) 1483 413 500 
SI Capital Limited 
Notes to Editor 
About Coinsilium 
Coinsilium is a venture builder, investor and advisor, supporting 
early-stage blockchain technology companies and the digital token economy. 
As the first ever IPO of a blockchain company in 2015, Coinsilium harnesses 
its experience and wide-ranging network to invest in some of the world's 
leading blockchain projects such as RSK/IOV Labs, Factom and Indorse . 
Coinsilium shares are traded on NEX Exchange Growth Market, the primary 
market for unlisted securities operated by NEX Exchange, a Recognised 
Investment Exchange under the Financial Services and Markets Act 2000. 
For further information about Coinsilium please visit: 
ISIN:          VGG225641015 
Category Code: MSCM 
TIDM:          COIN 
Sequence No.:  11846 
EQS News ID:   833537 
End of Announcement EQS News Service 

(END) Dow Jones Newswires

July 01, 2019 02:14 ET (06:14 GMT)