Dispersion Holdings - Dispersion - First Capital Investment

Press Release

25 May 2021 

Dispersion Holdings PLC

("Dispersion" or "The Company")

First Capital Investment Made

Dispersion (AQSE: DEFI), an investment company specialising in decentralised finance ("DeFi"), is pleased to announce a maiden equity investment of €250,000 into SportsX SAS ("SportsX"), a technology and services platform for amateur sports clubs around the world.

The investment is being made as part of a €985,000 private equity fund-raising by SportsX, which is incorporated in France, and will give Dispersion a 25% interest in the business.  

The SportsX platform is designed to improve the revenues and profitability of amateur sports clubs through digital and traditional marketing, media and the creation and management of club-branded Ethereum-based social tokens. Such tokens - decentralised digital assets secured by blockchain, through which communities can monetise their work - have potential to be a particularly strong value creation tool, with a total global market value of $81.2 million in December 2020 (source: Forefront).

From conservation charities to musicians and e-sports players, a growing number of community organisations and individuals are turning to social tokens to generate value. On SportsX's platform, each sports club's token is used to incentivise social media marketing, to purchase club merchandise and to allow access to premium content, with the value of a token derived from the growth of the community.

SportsX derives an 18% share of gross merchandising revenues and a small annual membership fee from clubs that join its network. In addition, it maintains a 10-20 per cent ownership position in each club's token and as the club's community grows over the time, the Company expects these tokens to gain real monetary value and to list on an Ethereum-based exchange such as Uniswap. SportsX expects to derive significant profit from its ownership position in each token.

SportsX's target market consists of serious amateur and semi-pro sports clubs around the world with an initial focus on rugby and football/soccer. For example, there are over 18,000 rugby clubs globally, including approximately 5,900 clubs in the EU and the UK and over 2,800 clubs in the US and Canada (source: International Rugby Board).

Michael Edwards, Chief Executive of Dispersion Holdings, said: "Following our successful IPO, we are delighted to kick off with an investment in SportsX, a company with great growth potential. It is part of our strategy to diversify investments across businesses in the DeFi sector, and SportsX is operating in an exciting area that should see significant opportunities as interest in amateur sports rebounds after the pandemic. Social tokens have a chance to become the next major development and value creator in the burgeoning digital asset industry, and we are excited to support this evolution."

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About Dispersion Holdings PLC:

Dispersion Holdings is an investment company specialising in opportunities in decentralised finance (DeFi), a disruptive technology using blockchain and cryptocurrencies to remove financial intermediaries from transactions, creating a cheaper, more efficient and more secure way of providing financial services. Listed on the Aquis Exchange in London, we apply our expertise to the business operations and strategic plans of FinTech companies in the UK, USA and Canada, and act as an accelerator for start-ups and early-stage companies.