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DJ Block Commodities Ltd: Strategic Investor and launch of FarmCoin Venture

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 Block Commodities Ltd (BLOC) 
Block Commodities Ltd: Strategic Investor and launch of FarmCoin Venture 
 
14-May-2018 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
The information communicated within this announcement is deemed to 
constitute inside information as stipulated under the Market Abuse 
Regulations (EU) No. 596/2014. Upon the publication of this announcement, 
this inside information is now considered to be in the public domain. 
 
14 May 2018 
 
      BLOCK COMMODITIES LIMITED 
 
      ("Block Commodities" or the "Company") 
 
      Block Commodities Limited / Epic: BLCC / Sector: Mining 
 
      Strategic Investor and launch of FarmCoin Venture 
 
Block Commodities Limited and Financial & Commodities Ecosystem Limited 
(FinComEco) a subsidiary of GMEX Group Ltd, are pleased to announce a 
strategic alliance with Swarm Fund (Swarm). Swarm is a fully decentralised 
capital marketplace platform built on blockchain technology for private 
equity. Under the alliance, the parties will provide a unique investment 
opportunity via the listing of FarmCoin Venture, an asset-backed investment 
coin, to help develop a pan-African financial and commodities ecosystem. 
 
Under the terms of the agreement, investors will be able to participate in 
the FarmCoin via Swarm's fully regulated marketplace. This investment will 
help supply African farmers with the financing of the infrastructure needed 
to help them raise yields and sell crop surpluses. 
 
The FarmCoin Venture has been created as a Joint Venture between FinComEco 
and Block Commodities (the "Joint Venture") to support the anticipated rapid 
growth of its agriculture-focussed ecosystem and the requirement to deploy a 
hybrid centralised and decentralised commodity exchange platform. This 
includes wireless data communication, farmers' KYC data support, data 
analysis, smart warehousing for fertilizer distribution and crop storage as 
well as transport. 
 
The initial investment ceiling will be US$45 million in value of FarmCoin 
tokens. The investment will be deployed by the Joint Venture parties to 
develop commodity ecosystems on a per-country basis across sub-Saharan 
Africa. This will include commodity finance and micro-lending to farmers for 
fertilizer and seed as well as the development of local and regional 
warehousing linked to commodity exchanges, making it easier for farmers to 
sell surplus agricultural produce. 
 
FarmCoin's primary aim is to provide a fully regulated financial 
infrustracture to Block Commodities and FinComEco's commodity ecosystem. 
This ecosystem intends to provide financial opportunities for those parts of 
African farming community who is either ineligible for loans or are forced 
to take on borrowings via moneylenders at uneconomic rates. FinComEco is 
already in discussions with over twenty countries across Africa with four 
countries already contracted to take up its model. 
 
In the FarmCoin model, farmers will be able to bring surplus crops to a 
warehouse.The surplus crops are aggregated and sold via a 
FinComEco-facilitated commodities exchange. Once the crops are sold, the 
warehouse fees and loan interest are paid and the net profit credited to the 
farmer in FarmCoins. The interest rates on FarmCoins will be at a mutually 
agreed, decentralised interest rate, expected to be up to 50 percent lower 
than prevailing bank lending rates and 75 percent less than the commercial 
rate. 
 
Investors who participate in Swarm's marketplace will purchase FARM tokens, 
representing fractional ownership in the FarmCoin infrastructure, making 
this a true asset-backed token. FARM token holders will benefit from a share 
in the fees and interest paid by the farmers. 
 
Block Commodities Executive Chairman, Chris Cleverly said: "FarmCoin will 
give investors not only a unique investment opportunity in one of the prime 
"unbanked" global markets, but also the chance to lend a helping hand to 
improve the lives and opportunities of Africa's poorest farmers. Support 
from Swarm Fund allows Block Commodities and FinComEco to make real progress 
on these goals, enabled by blockchain technology, " 
 
Chairman of GMEX Group and CEO of FinComEco, Hirander Misra commented: "Our 
primary concern is providing well-needed infrastructure and resources to 
unbanked farmers in sub-Saharan Africa, enabling them to feed their families 
by providing transaction security, eliminating corruption, reducing 
borrowing costs, and ensuring the liquidity for the purchase of inputs by 
guaranteeing the sale of produce," 
 
CEO and Co-Founder of Swarm, Philipp Pieper commented: "This puts Swarm in 
one of the most exciting places for crypto: ground zero for much of the 
world's unbanked. Our strategy is based on using our unique ecosystem to 
create real value for hundreds of millions of people, enabling them to trade 
responsibly with an objective of increasing income for farmers, to deliver 
economic security across Africa. By 2030, the population of Africa will have 
doubled to 2.5 billion, creating a profound need for a supportive and 
educational ecosystem that gives farmers a route towards improve their 
situations, lifting their families out of repetitive cycles of poverty, 
starvation and dependency. Blockchain and smart contract investments like 
FarmCoin enable market inefficiencies such as corruption, market access and 
perception-based debt costs to be removed," 
 
The Directors of the Company accept responsibility for the content of this 
announcement. 
 
For further information, please contact: 
 
Block Commodities Limited 
Chris Cleverly            +44 (0) 20 7408 9200 
 
NEX Exchange Corporate 
Adviser: 
Alexander David 
Securities Limited 
David Scott - Corporate   +44 (0) 20 7448 9820 
Finance 
James Dewhurst -          +44 (0) 20 7448 9820 
Corporate Broking 
 
Public and Investor 
Relations: 
Cassiopeia Services -     stefania@cassiopeia-ltd.com 
Stefania Barbaglio 
 
FinComEco 
 
                          melanie.budden@therealizationgroup.com 
The Realization Group- 
Melanie Budden 
 
                          swarm@transformgroup.com 
 
Swarm Fund 
 
About Block Commodities 
 
Block Commodities' strategy is to maximise the value of African agricultural 
and other commodities through the deployment of blockchain technology. The 
resources will be linked through the vertical integration of primary 
industries down to consumers via blockchain platforms. Using blockchain's 
ability to dynamically incorporate all market participants into an efficient 
ecosystem, Block Commodities aims to facilitate the commercial operation of 
such ecosystems in the context of the agricultural production cycle. 
 
In reclaiming the value lost in African agricultural and extractive 
industries through inefficient supply and distribution systems, Block 
Commodities will help African farmers raise productivity and secure better 
returns for produce. This is an important step in establishing African 
communities as significant future global agricultural producers. 
 
About FincomEco 
 
FinComEco, a fully integrated Financial & Commodities Ecosystem, is a 
corporate venture to provide an ecosystem of services, financing, capacity 
building and enablement solutions underpinned by technology, to drive an 
improvement in food security and economic diversity through socially 
responsible commercial means (as opposed to charity), to foster financial 
inclusion. 
 
For more information visit www.FinComEco.com [1] 
 
FinComEco is a subsidiary of GMEX Group, an innovative provider of exchange 
and post-trade business services and technology. For more information visit 
www.gmex-group.com [2] FinComEco Block Commodities' joint venture partner in 
developing and operating a range of platforms/projects and initiatives in 
the agricultural commodity markets sector in sub-Saharan Africa. 
 
About Swarm Fund 
 
Swarm Fund is the blockchain for private equity. A fully decentralised 
capital marketplace, it democratises investing by using the power of 
blockchain to open up high-return, alternative investment classes to smaller 
investors through asset-backed funds using cryptocurrency tokens. It makes 
traditionally exclusive investment opportunities - such as private equity 
funds - inclusive for Swarm, and provides fund managers access to an 
untapped capital stack. With a structure similar to a co-operative, Swarm 
Fund is owned by its members, who also determine, through a liquid democracy 
governance system, the administrative and philosophical direction of Swarm 
Fund. By leveraging the efficiencies of intelligent, blockchain 3.0 
technologies, Swarm provides an entire platform from which businesses can 
create and run new, crypto-centric enterprises, with a wellspring of funding 
built in. 
 
ISIN:          GG00B4QYTJ50 
Category Code: ALL 
TIDM:          BLOC 
Sequence No.:  5532 
EQS News ID:   685169 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

May 14, 2018 02:01 ET (06:01 GMT)