Coinsilium Group Limited - Final Results & Notice of AGM PR Newswire

31 May 2017

COINSILIUM GROUP LIMITED


(“Coinsilium”, the “Group” or the “Company”)

Final audited results for the year ended 31 December 2016 and Notice of Annual General Meeting

STATEMENT OF THE BOARD OF DIRECTORS

It gives us great pleasure to present the annual report and financial statements for the year ended 31 December 2016.

Review of the Year

2016 was a transitional year for Coinsilium with some challenges along the way. There were several management and board level changes. However, despite the challenges, the Group pursued its main activities of accelerating and financing early-stage blockchain technology companies.

In 2016, Coinsilium Group increased its stake in three portfolio companies (Fuzo, Factom and SatoshiPay), divested of its stake in TRAC (“The Real Asset Company”) and invested in a new company, RSK Labs. RSK Labs is developing a smart contract platform secured by the Bitcoin network.

From February 2016 to the end of April 2016 Coinsilium’s wholly owned accelerator, Block Chain Space, conducted its first blockchain startup acceleration programme on the campus of ESADE Creapolis, near Barcelona. Four startups were accepted into the programme, each targeting different sectors of blockchain applications (payments, trade finance, data storage and peer-to-peer insurance). The Block Chain Space acceleration programme enables Coinsilium to acquire equity stakes in early-stage startups at entry-level valuations.

In April 2016, the Group also successfully ran the Blockchain Tech Lab, a unique one-week blockchain tech educational programme which gathered blockchain experts from around the world including several CTOs of Coinsilium’s investees. The programme was followed by a 2-day “blockchain hackathon” attended by teams of talented blockchain developers.

The Group recorded a loss after tax for the year of £738,065..This included the loss in relation to the divestment of TRAC of £316,800, together with the write down of investments in Fidelia Solutions Limited (CoinSimple) of £24,440 and in Exchange of the Americas (MeXBT) of £386,688.

The value of the investment portfolio at 31 December 2016 was £1,069,176.

At the year end, the Group had £99,641 in cash and cash equivalents.

Post Year End

At the beginning of 2017, Coinsilium Group’s co-founder Malcolm Palle joined the Board as a Non-Executive Director. Since the end of 2016 costs have been significantly reduced to a more appropriate level for a growth business of Coinsilium’s size. The Group has also taken several key strategic decisions to build a strong foundation in readiness for the many opportunities we see in the emerging Blockchain Technology sector.

We are now refocused on our core objectives and the Group has been repositioned to reflect the original ethos of why we originally launched Coinsilium: to identify the early winners in the blockchain revolution and leverage some of the vast array of related opportunities.

There has been evidence of our progress since the beginning of 2017 with exciting news from three companies in our portfolio; Factom, SatoshiPay and RSK Labs:

·      Factom added Peeli Ventures, Harvest Equity, and a number of Austin-based investors to its stellar lineup of investors including Tim Draper, Plug and Play and Medici Ventures to reach a series A round of US$8m.

·      SatoshiPay closed a €1.1m round of investment at a price of Eur340 per share raising the implied value of Coinsilium's shareholding in SatoshiPay to €725,220, representing an increase in value of 362.61% since Coinsilium's investment.

·      RSK Labs participated to the second batch of the 'Dubai Future Accelerator' where they have been working with the Dubai government on large scale blockchain applications. RSK Labs raised $3.5m in a pre-series A round and recently opened their latest software version ‘Ginger’ for public testing.

In the first half of 2017 the Group also raised a total of £305,985 in two successive share subscriptions, supported in the main by existing shareholders and all Board Directors in both instances and we are most grateful to our shareholders for their continued support. 

In addition to our investments, over the course of 2017 Coinsilium will be taking a more proactive stance in terms of its commercial activities and we are currently evaluating some exciting opportunities with the objective of expanding the business in an innovative, yet cost effective manner.

To this intent, in April 2017, the Group announced that it has entered into a Strategic Alliance with Oraclize, the London-based company providing infrastructure layers for Smart Contracts, to jointly develop and build a Smart Contract System for the next generation of blockchain-powered applications.

It is anticipated that more players will be joining The Alliance in the near term, leveraging each parties’ complementary skill sets in order to jointly develop and build a Smart Contract System (“SCS”) for the next generation of blockchain-powered applications, now being referred to as ‘Blockchain 2.0’. The objective is to provide an Enterprise Standard foundational layer to enable commercial scale development of market specific SCS managing Token issuance and implementation of governance protocols for many vertical markets.

Shareholders should expect further news in this regard over the coming weeks and months as the Strategic Alliance initiative begins to take form.

Outlook

We recognise that we are living in exceptional times when, at this early stage of development, blockchain, a technology now qualified as foundational by Harvard Business Review, offers numerous opportunities with the potential to generate asymmetric returns to our shareholders.

We would also like to sincerely thank our shareholders for their continued support over the last year and we look forward to updating the market with news of Coinsilium’s progress and that of our investee companies over the course of the year.

With a restructured Board and a new commercial strategy in place, we believe that Coinsilium is well positioned to take advantage of our first-mover advantage in this exciting technology space, and we look to the future with confidence and enthusiasm.

Eddy Travia

Executive Director

31 May 2017

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of shareholders of Coinsilium Group Limited (the “Company”) will be held at the offices of Peterhouse Corporate Finance Limited, New Liverpool House, 15 Eldon Street, London, EC2M 7LD at 15.00 BST on 6 July 2017.

Notice of the Annual General Meeting and audited accounts will shortly be available on the Company’s website at https://www.coinsilium.com/

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

For further information, please contact:

Eddy Travia, CEO    +44 (0) 207 099 0740
Coinsilium Group Limited
www.coinsilium.com

Malcolm Palle, Non-executive Director   +44 (0) 7785 381089
Coinsilium Group Limited

Harry Chathli / Ana Ribeiro / Alexis Gore    +44 (0) 207 618 9100
Luther Pendragon Ltd
(Media Relations)

Guy Miller / Mark Anwyl    +44 (0) 207 469 0930 
Peterhouse Corporate Finance Limited 
(NEX Exchange Corporate Adviser)

Nick Emerson / Andy Thacker    +44 (0) 1483 413 500
SI Capital Limited
(Broker)
 

COINSILIUM GROUP LIMITED                          
GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016


                                                               2016        2015
                                                                 GBP         GBP

Continuing Operations

Revenue                                                      208,627      11,870

Cost of sales                                               (38,769)     (7,985)

Gross Profit                                                 169,858       3,885

Administration expenses                                    (430,835) (1,026,361)

Impairments                                                (160,365) (1,312,059)

Loss on disposal of available for sale financial assets    (316,800)           -

Share based payments                                               -    (81,275)

Operating Loss                                             (738,142) (2,415,810)

Finance income                                                    77          65

Finance costs                                                      -         (1)

Loss before Taxation                                       (738,065) (2,415,746)

Income tax                                                         -           -

Loss for the year/period                                   (738,065) (2,415,746)

Other Comprehensive Income:

Items that may be subsequently reclassified to profit
or loss

Change in fair value on available-for-sale financial         118,195     287,905
assets

Fair value of impaired available-for-sale financial        (276,682)           -
assets recycled through profit or loss

Total Comprehensive Income attributable to owners of       (896,552) (2,127,841)
the Parent

Earnings per share (pence) from continuing operations         (0.01)      (0.04)
attributable to owners of the Parent – Basic & Diluted



COINSILIUM GROUP LIMITED                                                
STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016


                             Group                       Company

                    31 December 31 December 31 December 2016 31 December 2015
                          2016        2015               GBP              GBP
                            GBP         GBP

Non-Current Assets

Intangible assets             -           -                -                -

Property, plant           1,083         508                -                -
and equipment

Available-for-sale    1,069,176   1,452,035                -                -
financial assets

Investment in                 -           -        3,011,984        2,652,406
subsidiaries

Other financial         334,456     164,335                -                -
assets

                      1,404,715   1,616,878        3,011,984        2,652,406

Current Assets

Trade and other           6,274      59,058            1,979           33,384
receivables

Cash and cash            99,641     984,023                -          248,397
equivalents

                        105,915   1,043,081            1,979          281,781

Total Assets          1,510,630   2,659,959        3,013,963        2,934,187

Equity
attributable to
owners of the
Parent

Share capital                 -           -                -                -

Share premium         4,377,396   4,377,396        4,377,396        4,377,396

Share option             81,275      81,275           81,275           81,275
reserve

Available-              129,418     287,905                -                -
for-sale reserve

Retained losses     (3,153,811) (2,415,746)      (2,164,378)      (1,806,478)

Total equity          1,434,278   2,330,830        2,294,293        2,652,193
attributable to
owners of the
Parent

Current
Liabilities

Trade and other          76,352     329,129          719,670          281,994
payables

Total Liabilities        76,352     329,129          719,670          281,994

Total Equity and      1,510,630   2,659,959        3,013,963        2,934,187
Liabilities



The Financial Statements were approved and authorised for issue by the Board of Directors on 31 May 2017 and were signed on its behalf by:

Eddy Travia

Executive Director

COINSILIUM GROUP LIMITED                                                  
STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2016


GROUP                          Attributable to Equity Shareholders

                                       Share Available-
                     Share     Share  option   for-sale    Retained
                   capital   premium reserve    reserve      losses       Total
                       GBP       GBP     GBP        GBP         GBP         GBP

At incorporation        -*         -       -          -           -           -

Loss for the             -         -       -          - (2,415,746) (2,415,746)
period

Other
comprehensive
income

Change in value on       -         -       -    287,905           -     287,905
available-for-sale
financial assets

Total                    -         -       -    287,905 (2,415,746) (2,127,841)
comprehensive
income for the
period

Transactions with
owners

Issue of ordinary        - 4,652,870       -          -           -   4,652,870
shares

Issue costs              - (275,474)       -          -           -   (275,474)

Share based              -         -  81,275          -           -      81,275
payments

Total transactions       - 4,377,396  81,275          -           -   4,458,671
with owners

As at 31 December        - 4,377,396  81,275    287,905 (2,415,746)   2,330,830
2015

Loss for the year        -         -       -          -   (738,065)   (738,065)

Other
comprehensive
income

Change in value on       -         -       -    118,195           -     118,195
available-for-sale
financial assets

Fair value of            -         -       -  (276,682)           -   (276,682)
impaired
available-
for-sale assets
recycled through
profit or loss

Total                    -         -       -  (158,487)   (738,065)   (896,552)
comprehensive
income for the
year

As at 31 December        - 4,377,396  81,275    129,418 (3,153,811)   1,434,278
2016



* One share issued on incorporation at £Nil par value.

COINSILIUM GROUP LIMITED                                                  
STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2016


PARENT COMPANY               Attributable to Equity Shareholders

                                           Share option
               Share capital Share premium      reserve    Retained
                         GBP           GBP          GBP      losses       Total
                                                                GBP         GBP

At                        -*             -            -           -           -
incorporation

Loss for the               -             -            - (1,806,478) (1,806,478)
period

Total                      -             -            - (1,806,478) (1,806,478)
comprehensive
income for the
period

Transactions
with owners

Issue of                   -     4,652,870            -           -   4,652,870
ordinary
shares

Issue costs                -     (275,474)            -           -   (275,474)

Share based                -             -       81,275           -      81,275
payments

Total                      -     4,377,396       81,275           -   4,458,671
transactions
with owners

As at 31                   -     4,377,396       81,275 (1,806,478)   2,652,193
December 2015

Loss for the               -             -            -   (357,900)   (357,900)
year

Total                      -             -            -   (357,900)   (357,900)
comprehensive
income for the
year

As at 31                   -     4,377,396       81,275 (2,164,378)   2,294,293
December 2016



* One share issued on incorporation at £Nil par value.

COINSILIUM GROUP LIMITED                                                               
STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2016


                                             Group                Company

                                          2016        2015      2016        2015
                                           GBP         GBP       GBP         GBP

Cash flows from operating
activities

Loss before taxation                 (738,065) (2,415,746) (357,900) (1,806,478)

Adjustments for:

Finance income                            (77)        (65)         -           -

Depreciation                               466         132         -           -

Amortisation                                 -         600         -           -

Impairment of intangible assets              -   1,110,722         -         600

Non-cash revenues                    (129,278)           -         -           -

Impairment of available-for-sale                   200,737         -           -
financial assets                       160,365

Impairment of investment in                  -           -         -     937,767
subsidiaries

Loss on disposal of                    316,800           -         -           -
available-for-sale financial assets

Share based payment                          -      81,275         -      81,275

Directors fees paid in shares                -     140,000         -     140,000

Creditors balances settled in                -      33,513         -      33,513
shares

Decrease/(Increase) in trade and        52,784    (59,058)    31,405    (33,384)
other receivables

Increase in trade and other          (252,777)     329,130 (269,902)     281,994
payables

Net cash used in operating           (589,782)   (578,760) (596,187)   (364,713)
activities

Cash flows from investing
activities

Interest received                           77          65         -           -

Purchase of intangible assets                -       (600)         -       (600)

Purchase of property, plant &          (1,041)       (640)         -           -
equipment

Purchase of financial assets         (170,121)   (164,335)         -           -

Proceeds from disposal of               41,600           -         -           -
available-for-sale financial assets

Purchase of available-for-sale       (165,115)   (435,590)         -           -
financial assets

Investment in subsidiary                     -           -         -     (4,333)
undertakings

Decrease/(increase) in loans to              -           -   347,790 (1,545,840)
subsidiary undertakings

Net cash (used in)/generated from    (294,600)   (601,100)   347,790 (1,550,773)
investing activities

Cash flows from financing
activities

Proceeds from issue of shares                -   2,439,357         -   2,439,357
Cost of share issue                          -   (275,474)         -   (275,474)

Net cash generated from financing            -   2,163,883         -   2,163,883
activities

Net (decrease)/increase in cash and  (884,382)     984,023 (248,397)     248,397
cash equivalents

Cash and cash equivalents at           984,023           -   248,397           -
beginning of year/period

Cash and cash equivalents at end of     99,641     984,023         -     248,397
year/period