Binary options platform and broker turned Blockchain company TechFinancials Inc (LON:TECH) has announced that it has applied for admission of its entire issued share capital of 84,980,979 fully paid ordinary shares to trading on the NEX Exchange Growth Market. Admission is expected to take place on or around August 8, 2018.
The company said that it sees its plan to dual list its shares on the NEX as being entirely complimentary to its current London Stock Exchange-AIM listing – and, that it plans to remain trading on AIM following its admission to NEX. The Directors of TechFinancials believe that a dual listing on NEX will increase the visibility of the company in the market; may potentially enhance liquidity for the company’s shares; and create a solid platform on which the Directors can continue to promote the company’s growth.
There doesn’t really seem to be any good reason for a company like TechFinancials, with a total market cap of under £10 million, to list its shares on two exchanges, and frankly we would expect that at some point after the NEX listing occurs that the company will delist from the AIM. The move to NEX will help the company – which saw a 37% Revenue decline in 2017 and forecast further declines for 2018 – save money, and will give management and the directors more flexibility to make moves such as potentially take the company private, or recapitalize the company. Another example of a recent similar move to the NEX – and an eventual delisting from AIM, followed by a recap of the company – was completed earlier this year by FX and CFDs broker London Capital Group.
TechFinancials’ main source of income is its joint-venture stake in the DragonFinancials Asia-focused binary options brokerage, while it is building up its Blockchain technologies and solutions business, including its effective 90% stake in the recently-launched Cedex.com blockchain-based diamond exchange.
Asaf Lahav
Asaf Lahav, Group Chief Executive Officer of TechFinancials:
In conjunction with trading on AIM, we are very pleased to be joining NEX which marks a significant milestone in the Company’s growth. We believe that it will create an important opportunity for the Company to access additional sources of finance as well as raising our profile to become a leader in the market in which we operate.
With a revised focus on blockchain trading technologies and solutions, the Company is now well positioned to attract further capital investment as we seek to deliver on our new strategy. We look forward to updating our investors and the market on the progress made over the coming months.