Binary options technology and brokerage company TechFinancials Inc (LON:TECH) has announced that it has cancelled the planned sale of its Binary Options holdings, after the buyers were unable to secure the necessary regulatory approvals for the deal by a self-imposed deadline of January 31, 2018.
As we reported in late November, TechFinancials came to an agreement to sell its CySEC licensed subsidiary B.O. TradeFinancials Limited, which operates the OptionFair binary options brokerage brand, as well as another related subsidiary MarketFinancials Limited, to a Cyprus incorporated company called S. Win Holdings Limited, which is held by Roy Shagan, Roy Winzelberg and Daniel Winzelberg.
As the company being sold is a regulated company, holding a CIF license issued by CySEC in Cyprus, the regulator had to approve the new owners.
The total consideration for the sale was just to be USD $400,000, so it doesn’t really come as a large financial shock to TechFinancials. However a new Israeli law bans all operation of Binary Options brokerage activities, so TechFinancials – which will presumably continue to oversee and run OptionFair, at least in the near term – will need to be careful that none of those activities are performed out of he company’s Israeli headquarters.
TechFinancials stated that it is now “re-considering its options” with regard to OptionFair and MarketFinancials, which provides binary options market making services.
TechFinancials has shifted its focus lately away from Binary Options, and into applying its technology to Blockchain development. While TechFinancials continues to hold a 51% stake in China-focused binary options broker DragonFinancials – which continues to yield healthy dividends – the company’s main project to date is Blockchain based online diamond exchange Cedex.com. Cedex recently delayed its planned ICO to March. Since jettisoning Binary Options (or at least stating its intention to) and focusing on Cedex.com and Blockchain, TechFinancials’ shares have soared by about 3x, although they have fallen back by about 40% over the past two weeks as cryptocurrency prices have plunged.
The full text of the announcement made this morning by TechFinancials reads as follows:
06 February 2018
TechFinancials, Inc.
Non-core asset disposal: Update
Further to its announcement of 24 November 2017, TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today announces that it has decided not to progress with the proposed sale of the Company’s shareholdings in its non-core subsidiaries, B.O. TradeFinancials Limited (“BOT”) and MarketFinancials Limited (“MF”), to S. Win Holdings (“the Buyer”).
As of 31 January 2018, the Buyer had not secured the relevant regulatory consents for the acquisition of either BOT or MF and, under the terms of the share purchase agreement, the Company has elected not to proceed with the sale of BOT and MF.
TechFinancials is currently re-considering its options with regard to its shareholdings in BOT and MF and will make a further announcement in due course. In the meantime, TechFinancials will continue to focus its attention on developing its Forex and CFD and other innovative solutions including solutions for the rapidly growing blockchain-based products and technologies market.