Back to all announcements

DJ Coinsilium Group Limited: JV Agreement with IOV Labs and Strategic Business Review

 
 Coinsilium Group Limited (COIN) 
Coinsilium Group Limited: JV Agreement with IOV Labs and Strategic Business 
Review 
 
08-Jul-2020 / 07:00 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") 
 
        Coinsilium: Joint Venture Update 
 
 Execution of Joint Venture Agreement with IOV Labs and Strategic Business 
        Review 
 
London, UK, 8 July 2020 - Further to its announcement of 28 January 2020, 
Coinsilium Group Limited (AQSE:COIN) is pleased to provide an update 
regarding its Joint Venture Agreement (JVA) with IOV Labs Limited (IOV) to 
establish a Joint Venture Company (JVC) in Singapore and notification of a 
Strategic Business Review of the Company's operations and investments. 
 
IOV is a Gibraltar registered company and parent to RSK, the developers of 
the first smart contract platform secured by the Bitcoin network in which 
Coinsilium holds a vesting interest of 1,951,846 RIF tokens. IOV is a global 
Blockchain Protocol company with more than one hundred employees and 
contractors worldwide, focused on developing various implementations of the 
RSK Smart Contract Network, RIFOS and Taringa! platforms. As announced on 30 
September 2019, Taringa! was acquired by IOV and is one of the largest 
Spanish language social media apps with a 30 million strong social network 
and over 1,000 active online communities. 
 
Highlights 
 
? IOV Labs Limited and Coinsilium Group Limited have executed a Joint 
Venture Agreement to form a Joint Venture Company in Singapore. 
 
  ? Southeast Asia is one of the world's fastest growing internet economies 
  and on track to reach $300 billion gross merchandise value by 2025 
 
? Each shareholder will hold 50% of the total shares of the JVC at 
incorporation. 
 
  ? JVC will be financed by IOV by way of a loan which is to be repaid from 
  the future revenues of the JVC 
 
? Eddy Travia, Coinsilium's CEO, to represent Coinsilium as a Director of 
the JVC. 
 
? The business of the JVC will be to promote and commercialise IOV's 
products, services and technologies, principally in the Asian markets. 
 
Coinsilium CEO Eddy Travia commented: "This is the start of an exciting new 
journey of collaboration for Coinsilium with one of the world's leading 
blockchain networks. The management of both Coinsilium and IOV share the 
common vision that blockchain technology can change society for the better 
and we are already starting to see numerous beneficial blockchain 
applications manifesting in the real economy, especially in Southeast Asia's 
fast- growing economies where our JVC will operate. 
 
We look forward to playing our part in the adoption process and supporting 
the large-scale implementation of the RSK blockchain and RIF solutions in 
core industries such as energy, transportation, natural resources, finance, 
health care and commerce. This joint venture represents a major step in 
Coinsilium's development and is set to be one of the key drivers of value 
creation for Coinsilium's shareholders in the years to come. We look forward 
to providing the market with regular updates as the joint venture takes 
shape and progresses." 
 
Diego Gutierrez Zaldivar, CEO of IOV, commented: "We are very excited about 
our joint venture with Coinsilium in Asia. Asia has always been a key market 
for us, as the immense innovation in the region will be integral to 
realising blockchain's full potential. Our strategic partnership with 
Coinsilium will enable our platforms to boost their ecosystem, accelerating 
progress toward our shared goal of increased adoption of blockchain 
technology in the region. Working together with Coinsilium, IOV will 
establish an important footprint in the region, forge new relationships with 
key partners and solidify the long-term success and development of the RSK 
blockchain which in turn will help to generate RSK blockchain mass 
adoption." 
 
Execution of Joint Venture Agreement with IOV 
 
The Company announced on 28 January 2020 that it had completed a Strategic 
Investment Agreement with IOV to invest GBP250,001 in Coinsilium by way of a 
private placement in the Company at 2.65p per share. IOV now holds an 
interest of 6.94% in Coinsilium. In tandem with the Strategic Investment 
Agreement, IOV and Coinsilium executed a Memorandum of Understanding ('MOU') 
to establish a JVC in Singapore to promote and commercialise IOV's products, 
services and technologies principally in the Asian markets to corporations, 
entrepreneurs, governments and NGOs. Another key objective of the JVC is to 
promote the adoption in the region of the RIF token which powers the 
ecosystem of solutions developed by IOV and its partners and developers 
around the world. The MOU further specified that Eddy Travia, CEO of 
Coinsilium, is to be appointed as director of the JVC and as part of his 
role in the JVC, he will provide services to IOV which include acting as 
IOV's Regional Director for Asia-Pacific. 
 
The Company is pleased to announce that the Joint Venture Agreement ('JVA') 
with IOV has now been finalised and executed and the company formation 
process in Singapore is currently underway. Further documentation including 
a Loan Agreement and Services Agreement with the JVC are in the final review 
process and subject to execution, at which point the Company will provide a 
further update to the market. 
 
Asia Region Blockchain Market 
 
Southeast Asia is one of the world's fastest growing internet economies. 
Citing Google & Temasek / Bain, e-Conomy SEA 2019 [1], there were more than 
360 million internet users in Southeast Asia as of 2019. The Southeast Asia 
internet economy has hit $100 billion gross merchandise value and is on 
track to reach $300 billion by 2025. E-commerce, logistics and financial 
companies need to adapt to this fast growth of digital services and payments 
- digital payments reached $600 billion gross transaction value in 2019 and 
on track to exceed $1 trillion by 2025 (1). This makes Southeast Asia a 
particularly fertile market for the provision of the RIF Enterprise and RIF 
Open Finance solutions developed by IOV. 
 
(1) Source: Google & Temasek / Bain, e-Conomy SEA 2019 
https://www.bain.com/insights/e-conomy-sea-2019/ 
 
Strategic Business Review 
 
This announcement today represents a transformational event for Coinsilium 
and presents a unique commercial opportunity to create meaningful value for 
shareholders. It is also recognised that Coinsilium's commitment to the JVC 
will require a commensurate rebalancing and shift in focus in terms of the 
Company's existing scale, operational capacity and resources. 
 
In order to address these challenges, the Company will shortly announce the 
commencement of a Strategic Business Review process to cover Coinsilium's 
operations and investments. 
 
The ultimate objective will be to see the Company best positioned to 
maximise its potential, both from within the scope of its joint venture with 
IOV and also from Coinsilium's operational base in Gibraltar, which is fast 
becoming a pre-eminent global regulatory jurisdiction for innovative 
financial technology, including cryptocurrencies. The timing of this review 
is also particularly pertinent, given the accelerating pace of growth within 
the Decentralised Finance (DeFi) and Crypto Finance sectors. 
 
A comprehensive overview of the Strategic Business Review process will be 
provided to the market within the next 7 days. 
 
The Directors of Coinsilium Group Limited take responsibility for this 
announcement. 
 
For further information, please contact: 
 
Coinsilium Group Limited               +44 (0) 7785 381 089 
 
Malcolm Palle, Executive Chairman      www.coinsilium.com 
 
Eddy Travia, Chief Executive 
 
Peterhouse Capital Limited             +44 (0) 207 469 0930 
 
Guy Miller / Mark Anwyl 
 
(AQSE Growth Market Corporate Adviser) 
 
SI Capital Limited                     +44 (0) 1483 413 500 
 
Nick Emerson 
 
(Broker) 
 
Notes to Editor 
 
About Coinsilium 
 
Coinsilium is a focused Blockchain, DeFi and Crypto Finance venture 
operator. As the first ever IPO of a blockchain company in 2015, Coinsilium 
has harnessed its experience and wide-ranging network to invest in leading 
blockchain projects such as RSK/IOV Labs, Indorse and Blox. 
 
In July 2020 Coinsilium executed a Joint Venture Agreement with global 
blockchain protocol company IOV, to establish a 50/50 Joint Venture Company 
in Singapore to promote and commercialise IOV's products, services and 
technologies, principally in the Asian markets and to promote the adoption 
in the region of the RIF token which powers the ecosystem of solutions 
developed by IOV, and its partners and developers around the world. 
 
Coinsilium shares are traded on the AQSE Growth Market, the primary market 
for unlisted securities operated by Aquis Stock Exchange, a Recognised 
Investment Exchange under the Financial Services and Markets Act 2000. 
 
For further information please visit [2]www.coinsilium.com [2] or follow 
@CoinsiliumGroup on Twitter 
 
About IOV Labs Limited 
 
IOV [3] is focused on developing the platforms needed for a new 
blockchain-based financial system that will enable worldwide financial 
inclusion and bridge the gap between these nascent technologies and mass 
adoption. 
 
The organization is currently developing various implementations of the RSK 
Smart Contract Network [4], RIF [5] and Taringa [6]'s platforms. The RSK 
Network is the most secure Smart Contract platform in the world, as it 
relies on Bitcoin's hash power. RIF is a suite of open and decentralized 
infrastructure protocols that enable faster, easier and scalable development 
of distributed applications (dApps) within a unified environment to enable 
mass adoption of Bitcoin and RSK and Taringa! - Latin America's largest 
Spanish speaking social network with 30 million users and 1,000 active 

(MORE TO FOLLOW) Dow Jones Newswires

July 08, 2020 02:00 ET (06:00 GMT)

DJ Coinsilium Group Limited: JV Agreement with IOV -2-

online communities - through the integration with Bitcoin, RSK and RIF will 
help shape the Internet of the Future, which intends to confer on 
individuals full control of their information and value. 
 
For further information please visit: www.iovlabs.org [7] ,www.rsk.co [8] , 
www.rifos.org [9] www.taringa.net 
 
ISIN:          VGG225641015 
Category Code: MSCM 
TIDM:          COIN 
Sequence No.:  74343 
EQS News ID:   1088627 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=fa7f318f565f97901fc8616522cabbfb&application_id=1088627&site_id=vwd&application_name=news 
2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=e82019f83af6462d0ad455a3201afcc3&application_id=1088627&site_id=vwd&application_name=news 
3: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=568febe9c17eab1e370863ca4c1cee27&application_id=1088627&site_id=vwd&application_name=news 
4: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=9d066fbaf494aedccc32b2c180585897&application_id=1088627&site_id=vwd&application_name=news 
5: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=c245ef806baafeb745c0fef12cada989&application_id=1088627&site_id=vwd&application_name=news 
6: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=787e317344f592e9c7fd1950250f2cc6&application_id=1088627&site_id=vwd&application_name=news 
7: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=466c44732bfdb2895945d9e84857d0a1&application_id=1088627&site_id=vwd&application_name=news 
8: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=98f6600ab484fed25e11eda1541a40dc&application_id=1088627&site_id=vwd&application_name=news 
9: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=4bd9c323e527d2decdc5c7f066c25b51&application_id=1088627&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

July 08, 2020 02:00 ET (06:00 GMT)