COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
London, UK, 1 July 2019 - Coinsilium Group Limited (NEX:COIN), the blockchain venture builder, advisor and investor that finances and manages the development of early-stage blockchain technology companies announces that at its Annual General Meeting, which is to be held at 9:30am today, Malcolm Palle, Chairman, will make the following statement:
"In 2018 the Company recorded its highest revenues on record of £1.68m for the period, though the depreciation of the value of cryptocurrencies and tokens globally affected the value of Coinsilium's token holdings, preventing the Company showing a profit in the period.
"Since the end of 2018 we have seen a marked improvement in investor sentiment in the blockchain technology sector as the wider cryptocurrency markets continue to recover and gain strength.
"It is not always easy for investors to appreciate the scale of the opportunity that blockchain technology presents; given that the markets are usually focused on the day to day price movements of cryptocurrencies as a determining factor of value. However, we continue to believe the rapidly growing blockchain sector offers an opportunity for companies such as Coinsilium that is at least on par with or possibly even greater than the early days of the internet which spawned the dot.com boom in the 1990's.
"The surprisingly rapid pace of development of some of the companies within our investment portfolio also leads us to believe that we may start to see some material valuation uplifts, sooner than would otherwise have been expected. One example of this rapid growth cycle can be seen with Indorse's journey from concept to revenue generation, through to agreements from major corporate clients in just two years. Coinsilium owns a 10% equity stake in the Singapore-based blockchain powered skills verification platform, having invested SG$450,000 at the seed stage in 2017/18. As announced on 19 June 2019, Indorse has now secured an inward investment deal of up to US$6.5m from Brand Capital, the strategic investment arm of India's largest media house, The Times Group. This includes an initial investment of US$2m as a convertible note, with a valuation of US$15 million and an option of a further tranche of US$4.5m. The implied value of Coinsilium's 10% shareholding in Indorse is now US$1.5m, representing a 350% uplift in the two years since Coinsilium's initial investment. The significance of this investment round should not be understated as it sets Indorse on a fast-track pathway to material revenue generation and growth.
"Likewise, IOV Labs (formerly RIF Labs), following its token for equity swap and private token sale as announced on 19 November 2018, is now rolling out its global business based on the RSK technology and infrastructure at an accelerated pace. Another Coinsilium portfolio company making significant progress is Blox (formerly Coindash), a crypto tracking, management and accounting platform which has signed up a long list of established crypto companies as paying clients of its software-as-a-service solutions. Blox helps crypto exchanges, crypto miners, SMEs and corporates with cryptocurrency transactions and balances to alleviate the complexities of crypto accounting and bookkeeping.
"The recovery in the cryptocurrency markets, in addition to the major announcement made in June 2019 by Facebook to deploy its own cryptocurrency 'Libra' with the support of an impressive line-up of major corporations such as Mastercard, Visa, Paypal, Uber, Stripe and Vodafone, has created significant awareness and mainstream recognition of cryptocurrencies and the underlying blockchain technology.
"We believe that this trend of increased awareness, mainstream recognition and growing institutional interest is now set to accelerate and the activity we are seeing within our own investment and advisory pipeline gives us confidence that the Company is now entering a highly productive period.
"On 13 March 2019 we announced the incorporation of Coinsilium (Gibraltar) Limited ("CGL") as a wholly owned Gibraltar registered subsidiary of the Company. Going forward we expect our newly established operations in Gibraltar to be pivotal to our activities in the advisory space. On 4 June 2019, we announced our first Initial Exchange Offer ('IEO') advisory client OASISBloc and we now have a growing pipeline of new clients that we are currently working to on-board. Gibraltar provides us with a conducive regulatory framework in which to operate which in turn provides us with confidence for our own business continuity.
"We are also closely following global industry trends and expect a healthy pipeline for our advisory work to emanate from East Asia, as a region, particularly with regard to IEOs. We also anticipate significant synergies with CGL's activities and those of StartupToken, a global start-up hyper-accelerator in which Coinsilium holds a 30% equity position. StartupToken has successfully organised roadshows for its accelerator and advisory clients in East Asia and has now established a base in Singapore, one of the world's most active blockchain hubs. In view of the levels of activity in the region Coinsilium's Chief Executive Eddy Travia will now be spending more time in South East Asia and we will be making further announcements in this regard in due course. As previously announced, Coinsilium's Executive Chairman Malcolm Palle has now fully relocated to Gibraltar and is overseeing Coinsilium's operations in the jurisdiction.
"In Summary, with growing mainstream awareness and the positive industry trends we are witnessing, coupled with the increasing levels of activity within our own investment portfolio and advisory client pipeline, it gives us confidence that material uplifts in valuation can be achieved. In the previous bull cycle we saw our share price run from lows of 1p to over 20p reflecting the cyclical and volatile nature of these markets.
"Coinsilium's shares are currently trading on the NEX Exchange at around 3.75p which implies a market capitalisation for the Company of circa £4m. Whilst this price is higher than the recent market lows, in management's view it still materially undervalues the Company, given the existing value and potential we see within our advisory business and the quality of some of the high growth investments in our portfolio. This disparity becomes even more pronounced when one considers some of the valuations we are witnessing in the deal space, predominantly with unlisted blockchain companies.
"Coinsilium was established in 2014 and listed on the NEX Exchange in December 2015 as the first blockchain focused Initial Public Offering ('IPO') globally, with the objective of providing investors with exposure to high quality investment opportunities in the then emerging blockchain technology sector.
"In light of this, the board is determined to ensure that a more realistic market valuation for Coinsilium is established, enabling us to take full advantage of our leading market position and fulfil our ambition and stated objective of delivering asymmetric returns to our shareholders.
"With the performance of our investments and our advisory services division to date, we have continued to demonstrate our prowess in identifying winners and secure meaningful commercial advisory deals with some of the biggest names in the industry. Now, with the sector recovery in full swing, we look to the future with renewed confidence and look forward to releasing news to the market which, like the recently announced deal with Indorse, we believe will clearly demonstrate the real value and potential we see within the advisory business and our investment portfolio.
"We would like to take this opportunity to thank our shareholders for their continued support and engagement at this exciting time for the Company."
The Directors of Coinsilium Group Limited take responsibility for this announcement.
For further information, please contact:
Malcolm Palle, Executive Chairman +44 (0) 7785 381089
Coinsilium Group Limited
Eddy Travia, CEO +44 (0) 20 3889 4312
Coinsilium Group Limited
Guy Miller / Mark Anwyl +44 (0) 207 469 0930
Peterhouse Capital Limited
(NEX Exchange Corporate Adviser)
Nick Emerson +44 (0) 1483 413 500
SI Capital Limited
Notes to Editor
Coinsilium is a venture builder, investor and advisor, supporting early-stage blockchain technology companies and the digital token economy. As the first ever IPO of a blockchain company in 2015, Coinsilium harnesses its experience and wide-ranging network to invest in some of the world's leading blockchain projects such as RSK/IOV Labs, Factom and Indorse .
Coinsilium shares are traded on NEX Exchange Growth Market, the primary market for unlisted securities operated by NEX Exchange, a Recognised Investment Exchange under the Financial Services and Markets Act 2000.
For further information about Coinsilium please visit: www.coinsilium.com