Investment in Factom

RNS Number : 1997C

Kuala Innovations Limited

14 October 2015

 



14 October 2015

Kuala Innovations Limited

("Kuala" or the "Company")

Acquisition of 3.64% of blockchain data company Factom

The Board of Kuala Innovations Limited ("Kuala" or the "Company") is pleased to announce that it has subscribed for 3.64 per cent. of the issued shares of Delaware incorporated private company Factom, Inc. (trading as "Factom"), a data company working with multi-national companies to integrate blockchain technology for data storage, management and security across industries  ("Factom").

The Company has subscribed for 400,000 Seed Series Shares of Factom ("Factom Shares") at a price of US$1.00 per Factom Share (the "Factom Subscription"), for total cash consideration of US$400,000 (the "Consideration").  At the price paid by the Company, Factom has an aggregate pre-money value of approximately US$11 million. 

Commenting on the Factom Subscription, Kuala Co-Chairman Mr Jim Mellon noted:

"Factom has the potential to revolutionise the way industries handle, process and store "big data", applying the huge advances of blockchain technology to real commercial issues and improving existing practices in terms of cost, time and effectiveness.  With growing sales, a wide developer network integrating additional applications, and a pipeline of large client wins expected over the next 12 months, the Board believes this seed round investment by Kuala comes ahead of a significant value shift for Factom when it completes its anticipated Series A funding in the first half of 2016."

Factom

Factom's software allows companies to maintain a permanent, time-stamped record of their data tied to blockchains, reducing the cost and complexity of conducting audits, managing records, and complying with government regulations.

In the financial services industry, Factom tools let customers build transparent accountability systems for the financial industry, helping clients build immutable records that can be synced and shared among multiple parties. The validation and verification tools let the client audit these transactions in real time or run more sophisticated business process analysis of systems in the future. 

These same transparent audit tools can be used to build more transparent and accountable claims processing systems for the insurance industry and create more valuable models of risk analysis and customer profiling. Factom is working on proof of concept projects with some key insurance providers and learning how to integrate with existing claims systems.

Significant potential also exists for Factom technology to enhance the security of data and records within the healthcare and pharmaceutical industries, the telecoms industry, mobile banking, and for online real estate transactions.

Factom has sold US$1.2 million of its "Factoid" software licenses. Factom has over 1,500 software purchasers and has established an active developer network building interesting tools to integrate with Factom technology.

Factom is currently negotiating terms of engagement with a number of large US companies including those in the banking, insurance and healthcare industries.

With a heavy focus initially on development of their platform technology, the company nevertheless has demonstrated early revenues.  For the 9 months ended 30 September 2015 Factom had gross sales of US$628,337 (resulting in a trading loss of US$358,142 for the period).  As at 30 September 2015 Factom had total net assets of US$55,727.  Factom continues to focus on revenue growth alongside ongoing development of the Factom technology.

Further details regarding Factom are available at its website http://factom.org 

For further information please visit www.kualainnovations.com or contact:

Kuala Innovations Limited Elysium Fund Management Limited	Tel:   Tel: [phone]
Beaumont Cornish Limited (Nomad) James Biddle / Michael Cornish	Tel:  [phone]
Peterhouse Corporate Finance Limited (Broker) Guy Miller / Lucy Williams	Tel:   [phone]

CAUTIONARY STATEMENT

The AIM Market of London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding potential values, the future plans and objectives of Kuala Innovations Limited. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.

Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Kuala Innovations Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

 

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