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Coinsilium Group Limited (COIN)


Friday 04 December, 2020

Coinsilium Group Limited

Strategic Investment and IOV Labs Asia Update

Coinsilium Group Limited (COIN)
Coinsilium Group Limited: Strategic Investment and IOV Labs Asia Update

04-Dec-2020 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


("Coinsilium" or the "Company")


Coinsilium: Strategic Investment and IOV Labs Asia Update


IOV Labs to Increase Stake in Coinsilium with Worldwide Joint Venture Agreement


London, UK, 4 December 2020 - Coinsilium Group Limited ("Coinsilium" or "The Company") (AQSE: COIN) (OTCQB: CINGF), the Blockchain, DeFi and Crypto Finance venture operator, is pleased to announce that it has completed a follow-on investment agreement with IOV Labs Ltd ("IOV"), a Gibraltar registered company and parent to RSK, the first smart contract platform secured by the Bitcoin network and RSK Infrastructure Framework (RIF).


In tandem with the new investment agreement, the parties have agreed to expand the geographical scope of the IOV Labs Asia Joint Venture Company (the "JVC") from regional to worldwide.




 IOV to invest GBP330,000, (USD439,000 equiv.), in Coinsilium by way of a private placement, subscribing for 11,000,000 new ordinary shares of no-par value (the "Subscription Shares") at 3p per share. 

 One warrant to be issued for every two shares subscribed for, with an exercise price of 4.5p per new ordinary share, and a life to expiry period of two years from the admission of the Subscription Shares.

 IOV Labs will have the right to appoint one Director to the Board of Coinsilium.

 IOV Labs holding in Coinsilium increases from 9,434,000 to 20,434,000 ordinary shares representing an interest of 13.90% of the Company's outstanding shares, excluding warrants and treasury shares.

 Scope of IOV Labs Asia JVC to be expanded from Asia region to Worldwide.

 Funds to be used towards joint initiatives between Coinsilium and IOV and to further the growth and development of the Company. 

 Coinsilium is now fully funded for all its proposed ventures, activities and budgeted commitments through to at least January 2022. 


Disclosure: Coinsilium holds a vesting interest of 1,951,846 RIF (RSK Infrastructure Framework) tokens. Coinsilium Chairman Malcolm Palle is a director of IOV Labs Ltd.


Eddy Travia, Chief Executive of Coinsilium commented: "We welcome this timely follow-on investment from IOV Labs. Both IOV Labs and Coinsilium share big ambitions for the Company and its potential to create the next generation of digital asset platforms as a Blockchain, DeFi and Crypto Finance venture operator. Since IOV Labs' original investment in January this year, both parties have been working ever closer to ensure the alignment of our mutual interests ahead of Coinsilium's forthcoming relaunch as a focused Blockchain, DeFi and Crypto Finance venture operator. 


"Having a partner and significant shareholder with the size and scale of IOV Labs provides Coinsilium with a solid foundation from which to launch a range of ambitious blockchain and crypto finance ventures, targeting the markets where we have identified the greatest potential. We also believe that the removal of territorial constraints with regards to our joint venture activities is a significant development and will open the way to even greater opportunities for our common endeavours.


"The timing of this follow-on investment and the expansion of the scope of the IOV Labs Asia JV is also particularly favourable, given the burgeoning growth and activity we are seeing in the sector, largely driven by the resurgent cryptocurrency markets which are now trading at levels surpassing those seen at the end of 2017. 


"We look forward to providing the market with further development updates at this exciting and pivotal time for both the Company and shareholders."


Diego Gutierrez Zaldivar, Chief Executive of IOV Labs commented: "We are very pleased with the progress the Joint Venture with Coinsilium has made over the course of the year, which comes at a time where we are seeing unprecedented interest in decentralised financial applications on the Bitcoin Network, with its inherent efficiency and security.


With the deepening of our strategic relationship, we are now optimally placed to capitalise on the opportunities in front of us to boost adoption in the RSK Blockchain and RSK Infrastructure Framework (RIF) ecosystem in the Asian region and now also, in other key markets globally".



Background to Strategic Investment and Progression of IOV Labs Asia Joint Venture 


On 28 January 2020, IOV completed an initial investment in Coinsilium of GBP250,001, subscribing for 9,434,000 shares at 2.65p per share. In tandem with this Investment, IOV and Coinsilium executed a Memorandum of Understanding ('MOU') to establish a Joint Venture company ('JV Company') in Singapore in order to promote and commercialise RSK's products, services and technologies in the Asian markets to corporations, entrepreneurs, governments and NGOs.


Another key objective of the JV Company is to promote the adoption in the region of the RIF token which powers the ecosystem of solutions developed by RSK, their partners and independent developers around the world.  The MOU further specified that Eddy Travia, Chief Executive of Coinsilium, is to be appointed as Director of the JV Company and, as part of his role in the JV, he will provide services to IOV which include acting as IOV's Regional Director for Asia-Pacific. Notwithstanding this new appointment, Eddy continues to maintain his existing functions and responsibilities as Chief Executive of Coinsilium. 


On 8 July 2020 the Company reported both the finalisation of a Joint Venture Agreement with IOV Labs, in line with the terms of the MOU, and the formation of IOV Labs Asia Pte Ltd in Singapore, as a 50/50 Joint Venture Company ("JVC") between Coinsilium and IOV Labs.


A further announcement was made on 13 July 2020 reporting that a Strategic Business Review (the "Review") of the Company's operations and equity investments was underway, the objective of the Review being to align the Company in readiness for its participation within the JV Company and to ensure that the Company is optimally positioned and resourced to capitalise on new opportunities in the burgeoning Decentralised Finance (DeFi) and Crypto Finance sector, including the development of products, solutions and services in Crypto Lending, Crypto Staking and Stable Assets, both from within the scope of the JV Company and also from Coinsilium's operational base in Gibraltar, which is fast becoming a pre-eminent global regulatory jurisdiction for innovative financial technology, including cryptocurrencies.


Expansion of Scope of JV Company


The Company reports that IOV and Coinsilium have now agreed to broaden the scope of IOV Labs Asia to include the pursuit of commercial opportunities globally, rather than being limited to the Asian markets alone. This will enable IOV Labs Asia to make the best use of Coinsilium's worldwide network of relationships and contacts.


IOV Labs Asia is expected to be operational during Q1 2021 and, subject to COVID travel restrictions, Regional Director Eddy Travia is expected to relocate to Singapore in advance in order to oversee the setting up of operations.


Coinsilium Funding Position


Following this strategic investment by IOV Labs, based on minimum projected revenue assumptions, it is now fully funded for all its proposed ventures, activities and budgeted commitments through to at least January 2022. 


Coinsilium Relaunch 


The Company reported on 4 November that details of its new strategy, operating model and strategic partnerships will be announced to the market, together with the renewed corporate branding and website relaunch during the current quarter. Investors may wish to review the Company's August 2020 presentation in order to re-familiarise themselves with the relaunch roadmap and timeline.


The Company also announced on 19 October 2020 that Coinsilium's shares commenced cross-trading on the OTCQB Venture Market in the United States. By joining OTCQB ahead of its relaunch, Coinsilium now has an effective platform from which to reach a significantly larger US investor audience. 


The Directors of Coinsilium Group Limited take responsibility for this announcement.


For further information, please contact:


Coinsilium Group Limited

Malcolm Palle, Executive Chairman

Eddy Travia, Chief Executive

+44 (0) 7785 381 089



Peterhouse Capital Limited

Guy Miller / Mark Anwyl

(AQSE Growth Market Corporate Adviser)

+44 (0) 207 469 0930



SI Capital Limited

Nick Emerson


+44 (0) 1483 413 500






Notes to Editor


About Coinsilium


Coinsilium is a focused Blockchain, DeFi and Crypto Finance venture operator. As the first ever IPO of a blockchain company in 2015, Coinsilium has harnessed its experience and wide-ranging network to invest in leading blockchain projects such as RSK/IOV Labs, Indorse and Blox.


In July 2020, Coinsilium executed an agreement with top 100 blockchain protocol company IOV Labs, to establish a 50/50 Joint Venture Company in Singapore to promote and commercialise RSK's products, services and technologies in the Asian markets and to promote the adoption in the region of the RIF token which powers the ecosystem of solutions developed by RSK, their partners and developers around the world.


Coinsilium shares are traded on the London-based AQSE Growth Market, the primary market for unlisted securities operated by Aquis Stock Exchange, a Recognised Investment Exchange under the Financial Services and Markets Act 2000 under the ticker symbol "COIN", and on OTCQB Venture Market ("OTCQB") in the United States under the ticker symbol "CINGF".


For further information please visit or follow @CoinsiliumGroup on Twitter


About IOV Labs 


IOV Labs is a Gibraltar registered company and the parent to RSK. The RSK network is one of the most secure smart contract platforms in the world, designed to leverage Bitcoin's unparalleled hash power via merge-mining while extending its capabilities. It is complemented by RSK Infrastructure Framework (RIF) a suite of open and decentralized infrastructure protocols that enable faster, easier and scalable development of distributed applications (dApps) within a unified environment.


For further information please visit or follow @RSKsmart on Twitter


ISIN: VGG225641015
Category Code: MSCM
Sequence No.: 89046
EQS News ID: 1152746

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