COINSILIUM GROUP LIMITED
(“Coinsilium” or the “Company”)
UNAUDITED INTERIM RESULTS
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED
Coinsilium, the blockchain venture builder and investor that finances and manages the development of early-stage blockchain technology companies, is pleased to announce its unaudited consolidated interim financial statements for the six months ended
-- Total Comprehensive Income* of £290,210 (H1 2016: loss of £258,533) -- Loss for the period from continuing operations reduced by 24% to £205,378, (H1 2016: loss of £269,756) -- Loss per share of £0.02 (H1 2016: loss per share of £0.04) -- Available for sale financial assets amounted to £1.6m at
30 June 2017( 31 December 2016: £1.1m) -- Successful fundraising totalling £555,985 in three tranches between March and June 2017-- As at 30 June 2017, cash and cash equivalents amounted to £343,908 (31 December 2016: £99,641)
* Total Comprehensive Income includes fair value gain on available for sale financial assets
-- Post-period, sold entire shareholding in
SatoshiPay Ltd(“SatoshiPay”) to Blue Star Capital Plc (“Blue Star”) for a total consideration of €725,220 in cash, representing an increase of 362.6% compared to the price paid for the shares in 2015 -- Additionally, Coinsilium has received 85 million warrants over new Ordinary Shares of Blue Star, of which 42.5 million are exercisable at a price of 0.6 penceper Ordinary Share and 42.5 million are exercisable at a price of 0.8 penceper share over a 3-year period from completion of the acquisition
During the period, the Company made its first investments in the emerging Digital Token space.
-- Investment of
USD$75,000in Coin-Dash Ltd("Coindash"), a company developing the world's first social trading platform for cryptocurrency investors, through a Convertible Loan Agreement
-- Investment of SG$100,000 (circa £56,100) in
Indorse Pte. Ltd.(“Indorse”) through a convertible loan agreement. Indorse is a Singapore-based company developing a blockchain-powered decentralised professional network -- Post-period, the Company was granted an option to subscribe for an additional 7% of the fully diluted share capital of Indorse with a value of SG$350,000. If exercised, it also grants Coinsilium a seat on the Board of Directors of the Company
Significant Developments in Investee Companies
-- Factom added
Medici Ventures(Overstock’s venture arm) to its stellar line up of investors including Tim Draper, adding to a series A round
RSK Labsjoined the second batch of the ‘Dubai Future Accelerator’ to work with the Dubaigovernment on large scale blockchain applications -- RSK Labsraised US$3.5min a pre-series A round from a consortium of well-known blockchain companies and investors. Coinsilium has the rights to an equity stake circa 1% through a convertible instrument in RSK
“The first six months of 2017 have seen the most significant developments for Coinsilium where we made our first investments in the emerging Digital Token Space through Coindash and Indorse. The subsequent launch of Terrastream, to develop a token-based alternative funding solution operating in
The Directors of Coinsilium Group Limited take responsibility for this announcement.
For further information, please contact:
Coinsilium Group Limited
Coinsilium Group Limited
Harry Chathli /
(NEX Exchange Corporate Adviser)
Nick Emerson +44 (0) 1483 413 500
The near term strategic objectives of the Company can be defined as follows:
-- To reposition Coinsilium’s focus and market profile from an
Investing Companyto that of a Venture Builder, Accelerator and Strategic Investor -- To build a focused capability in the emerging Digital Token economy in line with the forthcoming regulatory framework in Gibraltarand other supportive jurisdictions -- To ensure greater market awareness and recognition of the Company by leveraging management’s key connections and communications skills
-- Memorandum of Understanding signed with leading Blockchain Smart Contract developer, Oraclize, to jointly develop and build an Enterprise scale Smart Contract System (“SCS”) for the next generation of blockchain-powered applications -- Memorandum of Understanding signed with
HyperChain Capital(“HyperChain”), one of the world’s first multi-million-dollar hedge funds investing in Blockchain companies, to collaborate and finance co-investment opportunities in blockchain companies -- In January 2017, Hakim Mamoni, Executive Director, stepped down from the Board and left the Company to pursue other business interests -- Post-period, Non-Executive Director Malcolm Pallewas appointed as Executive Chairman of the Company and the Company's registered and operational office changed to 32 Threadneedle Street, London, EC2R 8AY.
Post-period, the Company formed
Gibraltar Finance released a consultation document as part of its process towards establishing this regulatory framework and is set to become the first jurisdiction globally to provide a regulatory framework specifically designed for firms engaging in activities that use DLT for the transmission or storage of value belonging to others (DLT Framework), also covering Blockchain Technologies.
The board believes that the implementation of an effective regulatory framework by
The build and development of the Terrastream platform is expected to be funded from the Company’s existing reserves and the proceeds of a proposed non-dilutive Token Generating Event, further details of which will be announced in due course.
The period covered by this report was one of accelerated change and significant activity following the board restructure announced early in the half year. With costs now significantly reduced to a more appropriate level for a growth business of Coinsilium’s size, the board is now refocused on its core objectives and the Company has been repositioned to reflect its original ethos of identifying the early winners in the blockchain revolution and leverage some of the vast array of related opportunities in the sector. The Company has also taken several key strategic decisions regarding its growth and future direction and is now building a strong foundation with recent appointment of a full time Business Development Lead and other key appointments expected to follow.
The Digital Token space has grown rapidly since 2016 with over
Despite the current wave of speculation, the board believes that the Digital Token economy holds significant promise and we expect it to become a central focus of Coinsilium’s activities going forward.
The board, in particular CEO
To summarise, this has been a transitional period of positive change for Coinsilium. The management believes that blockchain technology and the array of potential applications will transform day to day life in the future. The Company’s early mover advantage into the blockchain space has provided it with invaluable insight, connections and investment opportunities to be leveraged for the benefit of all shareholders.
CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
Note 6 months to 30 June 6 months to 2017 30 June Unaudited 2016 Unaudited £ £ Revenue 97,895 196,211 Cost of sales (50,465) (36,200) Gross Profit 47,429 160,011 Administrative expenses (252,476) (309,277) Impairment - (120,490) Loss before Income Tax (205,047) (269,756) Financial Income 5 - Financial Expenses (337) - Loss for the Period from Continuing (205,378) (269,756) Operations Attributable to Owners of the Parent ___________ ___________ Other Comprehensive Income Change in fair value on available for sale 504,706 - financial assets Change in fair value on other financial (9,118) 11,223 assets Total Comprehensive Income for the Period, 290,210 (258,533) Attributable to Owners of the Parent Earnings per Share Basic and diluted earnings per share 4 (0.002) (0.004) attributable to equity holders of the Parent
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note As at As at As at 30 June 2017 30 June 2016 December 2016 Unaudited Unaudited Audited £ £ £ Assets Non-Current Assets Property, plant and equipment 695 1,215 1,083 Available for sale financial 5 1,610,003 1,668,824 1,069,176 assets Other financial assets 386,149 258,889 334,456 1,996,847 1,928,928 1,404,715 Current Assets Other receivables 19,470 35,653 6,274 Cash and cash equivalents 343,908 163,562 99,641 363,378 199,215 105,915 Total Assets 2,360,225 2,128,143 1,510,630 Equity Attributable to Owners of the Parent Called up share capital - - - Share premium 4,989,130 4,377,396 4,377,396 Share option reserve 81,275 81,275 81,275 Available for sale reserve 625,006 299,128 129,418 Retained losses (3,359,188) (2,685,502) (3,153,811) Total Equity Attributable to 2,336,223 2,072,297 1,434,278 Owners of the Parent Current Liabilities Trade and other payables 24,002 55,846 76,352 Total Equity and Liabilities 2,360,225 2,128,143 1,510,630
CONSOLDIATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity shareholders
Share Share Share Option Available for Retained Total Capital Premium Reserve Sale Reserve losses £ £ £ £ £ £ Balance as at - 4,377,396 81,275 287,905 (2,415,746) 2,330,830 1 January 2016 Loss for the - - - - (269,756) (269,756) period Fair value - - - 11,223 - 11,223 gain on other financial assets Total - - - 11,223 (269,756) (258,533) comprehensive income Balance as at - 4,377,396 81,275 299,128 (2,685,502) 2,072,297 30 June 2016 Balance as at - 4,377,396 81,275 129,418 (3,153,811) 1,434,278 1 January 2017 Loss for the - - - - (205,378) (205,378) period Change in - - - 504,706 - 504,706 fair value of available for sale financial assets Change in - - - (9,118) - (9,118) fair value of other financial assets Total - - - 495,588 (205,378) 290,210 comprehensive income Transaction with owners Shares issued - 611,734 - - - 611,734 Total - 611,734 - - - 611,734 transactions with owners Balance as at - 4,989,130 81,275 625,006 (3,359,188) 2,336,223 30 June 2017
CONSOLIDATED STATEMENT OF CASH FLOWS
6 months to 30 June 6 months to 30 June Year to 31 December 2017 2016 2016 Unaudited Unaudited Audited £ £ £ Cash flows from operating activities Loss before (205,378) (269,756) (738,065) taxation Adjustments for: Depreciation 388 333 466 Finance income - (64) (77) Investments settled - (150,438) - in shares Impairment of - 120,490 160,365 available for sale financial assets Loss on disposal of - - 316,800 available-for-sale financial assets Non-cash revenue - - (129,278) Share based payment 65,040 - - (Increase)/decrease (13,196) 23,405 52,784 in trade and other receivables (Decrease)/increase (52,350) (273,284) (252,777) in trade and other payables Net cash used in operating (205,495) (549,314) (589,782) activities Cash flows from investing activities Interest received - 64 77 Purchase of (96,932) (186,841) (165,115) available for sale financial assets Purchase of other - (83,331) (170,121) financial assets Purchase of - (1,039) (1,041) property, plant and equipment Proceeds from disposal of - - 41,600 available-for-sale financial assets Net cash used in investing (96,932) (271,147) (294,600) activities Cash flows from financing activities Net cash proceeds 546,694 - - from issue of shares Net cash generated from financing activities 546,694 - - Net increase/ 244,267 (820,461) (884,382) (decrease) in cash and cash equivalents Cash and cash 99,641 984,023 984,023 equivalents at the beginning of the period/year Cash and Cash Equivalents at end 343,908 163,562 99,641 of Period/Year
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of Preparation
The consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended
2. Financial Information
The consolidated interim financial statements do not constitute statutory accounts. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing the Financial Statements.
Risks and uncertainties
The key risks that could affect the Group’s short and medium term performance, and the factors that mitigate those risks have not substantially changed from those set out in the Group’s 2016 Annual Report and Financial Statements, a copy of which is available on the Company’s website: www.coinsilium.com. The Group’s key financial risks are liquidity, equity securities price risk and foreign exchange movements.
The preparation of consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group’s 2016 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period. The consolidated interim financial statements have been prepared on the historical cost basis, except for the measurement to fair value of certain financial instruments.
Changes in accounting policies and disclosures
There are no new and amended IFRS standards that are effective for the first time for the financial year commencing
The consolidated interim financial statements for the 6 months ended
3. Directors Remuneration
Directors of the Company received total remuneration of £72,842 for the 6 months ended
4. Earnings Per Share
Basic earnings per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares outstanding during the period.
Weighted As at 30 June 2017 As at 30 June 2016 average Loss per Share Loss per Share number of Shares £ No. £ £ Basic LPS Loss attributable (205,378) 92,525,457 (0.002) (0.004) to shareholders _______ __________ _____ _____
The Company had no dilutive potential shares during any period.
5. Available For Sale Financial Assets
Total £ At
1 January 20161,452,035 Additions 336,270 Impairment (120,490) Fair value movement 1,009 At 30 June 20161,668,824 Additions 3,385 Disposal (400,000) Impairment (320,219) Fair value movement 117,186 At 31 December 20161,069,176 Additions 86,171 Disposal (50,050) Fair value movement 504,706 At 30 June 20171,610,003
Fuzo Limited, a company incorporated in Hong Kong; -- Coins.sx Limited, a company incorporated in the United Kingdom, trading under the name of ‘Magnr’; -- SatoshiPay Limited, a company incorporated in the United Kingdom; -- Factom Inc., a company incorporated in the United States; -- Neuroware.io Inc., a company incorporated in the United States; -- Consentio Blockchain S.L., a company incorporated in Spain; -- Helperbit S.R.L., a company incorporated in Italy; -- BitcoinForMe S.L., a company incorporated in Spain; -- RSK LABS LTD, a company incorporated in British Virgin Islands.
6. Approval of Interim Financial Statements
The interim financial statements were approved by the Board of Directors on