Binary options platform and brokerage group TechFinancials Inc (LON:TECH) has announced that it is partnering with private banking expert Saar Levi to start a new venture called CEDEX.com.
According to TechFinancials, CEDEX will operate a Blockchain based online exchange for diamonds, with a long-term vision to turn the traditional diamond industry into a financial tradable asset. The plan is for CEDEX to revolutionize the way diamonds are traded. By adding transparency and using a blockchain based exchange, CEDEX will enable people to easily invest and trade in diamonds, based on their real market value, and turning diamonds into a new financial asset class. CEDEX focuses on bridging the gap between the traditional diamond industry and the innovative financial markets.
TechFinancials is providing initial funding of $400,000 in the form of an unsecured no-interest loan so that CEDEX can develop its technology.
TechFinancials will own 90% of the venture, via an exercisable option.
TechFinancials also plans to provide technical development services on a fee-for-service basis to CEDEX to assist with the development of the trading platform.
Saar Levi, CEDEX
Saar Levi is a former Israeli Naval officer, who has worked in banking with Lehman Brother (now Barclays Capital) and Banca IMI Securities Corp. For the past few years he has been representing a number of international private banks in distributing their funds to Israeli institutions, corporations and HNW individuals.
The company called the collaboration with CEDEX a “strategic development,” aligned with its long-term vision of utilizing its expertise and considerable experience in the development of online financial trading solutions and technology systems to further expand into new product areas. It is anticipated that CEDEX will provide a novel way to invest in diamonds, aligned with the Company’s vision of simplifying trading instruments.
CEDEX.com’s website shows a “Coming Soon” sign, with a countdown timer indicating some sort of launch in about two and a half days from now.
TechFinancials has had some problems in its core business lately, with its latest (1H-2017) financials showing a large decline in Revenues following the loss of TechFinancials’ largest customer, 24option.
The complete text of the announcement made by TechFinancials reads as follows:
23 October 2017
TechFinancials, Inc. (“TechFinancials, the “Company” or the “Group”)
Binding Heads of Terms for a Loan and Option Agreement with the shareholder of CEDEX
TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today announces it has entered into legally binding heads of terms (the “Heads of Terms”) with Saar Levi in respect of a to be incorporated group of companies which will operate under the name CEDEX.com (“CEDEX”). CEDEX will operate what the Company believes will be the first Blockchain based online exchange for diamonds with a long-term vision to turn the traditional diamond industry into a financial tradable asset.
Under the Heads of Terms, TechFinancials will make unsecured loan funding of US$400,000 available to the CEDEX group to develop its technology. The loan bears no interest. TechFinancials can seek repayment of the loan once CEDEX has sufficient funds and the loan therefore has no set maturity date.
In consideration for providing this initial funding, upon incorporation of the CEDEX holding company (“CEDEX HoldCo”), CEDEX HoldCo will grant the Company an option to acquire 90 per cent of CEDEX HoldCo at an exercise price of US$40,000, which may be offset against any amount outstanding under the loan. Exercise of the option is at the sole discretion of TechFinancials and the option can be transferred, sold or disposed of as TechFinancials sees fit. The option period is for three years from the date of grant.
It is envisaged that CEDEX will also utilise the Company’s knowledge and expertise. In addition, the Company may provide technical development services on a fee-for-service basis to CEDEX to assist with the development of the trading platform.
The collaboration with CEDEX is a strategic development aligned with the Company’s long-term vision of utilizing its expertise and considerable experience in the development of online financial trading solutions and technology systems to further expand into new product areas. It is anticipated that CEDEX will provide a novel way to invest in diamonds, aligned with the Company’s vision of simplifying trading instruments.
Further information about CEDEX is set out below and will be available on its website www.cedex.com that will accessible by the public in early November 2017.
The information contained 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.