TIDMTECH
RNS Number : 6468J
TechFinancials Inc.
06 December 2018
6 December 2018
TechFinancials, Inc.
Footies Binding Agreement signed - developing a blockchain based
ticketing venture for the sports industry
TechFinancials (AIM: TECH) (the "Company" or the "Group"), a
fintech software provider of financial solutions including
blockchain-based digital assets and traditional financial trading
solutions for retail clients, is pleased to announce that it has
signed a binding agreement ("Agreement") with Footies Tech Ltd
("Footies"), a Blockchain based ticketing venture for sports venues
and teams, to establish a new company subsidiary ("NewCo"). On 30
October 2018, the Company announced that it had entered into
non-binding heads of terms with Footies in relation to the
venture.
Highlights:
-- The venture will develop and market a blockchain based
ticketing solutions and event economics management system for
sports venues and teams
-- Initially, NewCo will focus on enabling sports organizations
to take full control over their ticket path once issued, including
secondary market trading configuration and enforcement
-- NewCo's vision is to fully digitise sport's match day
experience to economically benefit both fans and football clubs
-- Ex-CEO of Liverpool Football Club Ian Ayre to be Chairman of NewCo
-- TechFinancials will license its technological blockchain infrastructure to NewCo
Combining Footies' IP and data with TechFinancials' proprietary
technology, NewCo will develop and market a blockchain based
ticketing solution and event economics management for sports venues
and teams. The initial phase of the product will focus on enabling
sports organizations to take full control over their ticket path
once issued including secondary market trading configuration and
enforcement (via smart contracts), resolving one of the biggest
business challenges football clubs are facing today. NewCo's vision
is to fully digitize sport's match day experience in a way that is
mutually beneficial for fans and clubs alike.
Market & Strategy
Attendance at sporting events has rapidly increased in
popularity over the past decade. This is believed to be directly
linked to increased TV and online access to watching top tier
league matches, which fuels fast-growing fan bases worldwide. For
instance, football, the world's most popular sports game, boasts an
estimated 4.2 billion fans and is worth circa $35 billion per
annum. Notably, these figures are only the official estimates and
do not account for lost revenue on the secondary ticket market.
NewCo's initial product offering will be its Secondary Market
Control Module (SMCM) which addresses the largest cause of revenue
loss for clubs. SMCM is the first phases of NewCo's Event Economics
Management System for sports venues and teams rollout.
Details of the Venture Agreement
TechFinancials will hold 75 per cent of the shares of NewCo, and
Footies will hold the remaining 25 per cent of the shares. NewCo
will establish an option plan for founders and employees that will
be 20% of NewCo's issued share capital. NewCo will be registered in
the United Kingdom and will be chaired by Ian Ayre, currently
Chairman and Founder of Footies, and Chief Executive Officer of
Nashville's Major League Soccer club. He was previously Chief
Executive Officer of Liverpool Football Club.
Under the Agreement, TechFinancials will commit to support the
financial needs of the NewCo with a cost cap of US$500,000 for the
development of a proof of concept by NewCo for a European football
club ("POC"), employees' and consultants' salaries, administration
costs and business development and other expenses to be agreed by
the Parties. All costs borne by TechFinancials and/or monies paid
to NewCo shall be deemed to be a shareholder loan by TechFinancials
that will bear no interest.
In addition to the costs described above, TechFinancials will
license its technological blockchain infrastructure wherever
suitable, free-of-charge to NewCo in order for it to build a solid
software infrastructure and shorten development timescales.
TechFinancials' commitment is subject to execution by NewCo of
at least one agreement to develop a POC within three months of the
Parties signing the Agreement.
Asaf Lahav, CEO of TechFinancials said:
"We are delighted to announce our second blockchain venture,
which comes on the back of our diamond exchange project, CEDEX,
which went live on November 27 2018. TechFinancials uses blockchain
technology, tokenization and smart contracts to make trading and
exchanging "real assets" easier, cheaper and more accessible. With
the Footies platform built on the Company's pioneering proprietary
blockchain infrastructure, we aim to disrupt the broken market of
sports ticketing and bring the power back to venues, clubs and
fans.
"We look forward to working with the Footies team and believe
that with their deep knowledge of the football industry combined
with our technological and business expertise, we will deliver an
excellent product to the market."
Ian Ayre, Chairman of the NewCo stated:
"I am delighted to be involved in the establishment of such an
exciting and innovative company in partnership with TechFinancials.
There is huge demand for the secondary ticketing market in the
sporting industry to be revolutionised in order to make it fully
transparent and to make sure that a fairer deal is ensured for both
the venues and the customers. For years, both of these parties have
suffered at the hands of ticket touting, and we aim to solve this
by making it a more secure and stable market.
"Supported by TechFinancials', I look forward to developing and
growing the business to transform the way organisations handle
their events more effectively, for the benefit of all involved in
the ticketing process."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information:
TechFinancials, Inc. Tel: +972 54 5233
943
Asaf Lahav, Group Chief Executive Officer
Yuval Tovias, Chief Financial Officer
Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383
5100
Colin Aaronson / Samantha Harrison / Seamus
Fricker
Northland Capital Partners Limited (Broker) Tel: +44 (0) 20 3861
6625
David Hignell / Rob Rees
NEX Corporate Adviser and Joint Broker Tel: +44 (0) 20 7469
Peterhouse Corporate Finance 0930
Fungai Ndoro / Eran Zucker
Media enquiries:
Yellow Jersey PR Limited (Media Relations) Tel: +44 (0) 7748 843
871
Charles Goodwin / Felicity Winkles
About Footies
Footies is a Blockchain based ticketing platform for sports
venues and teams. Using Footies, issuers can finally take full
control over their event economics. Using its solution, issuers can
determine and track all aspects of their ticketing, from time of
issue until time of event, including all secondary market
functionality.
In today's market, the vast majority of ticket issuers can only
truly control the initial sale of a ticket. Once the ticket enters
the market, the issuers have no information regarding the number of
resales, the monetary value attached to these resales, and the
identity of the person who will occupy the seat in the issuer's
venue.
Using Footies' ticketing solution, issuers can determine the
full ticket path, from issue to use at event.
About TechFinancials
TechFinancials, Inc (AIM: TECH) is a fintech software provider
of financial trading solutions, including blockchain-based digital
assets and traditional financial trading solutions for retail
clients. The Group operates a B2B division licensing white label
trading platform solutions to online brokers. In addition, the
Company operates a B2C division operating trading platform
incorporating a strategic joint venture focusing on solutions for
traders in the Asia Pacific region.
The Company currently holds a 2 % interest and an option to
acquire a further 90 % in CEDEX, a blockchain-based on-line
exchange for diamonds, which would give TechFinancials up to 92 %
of CEDEX or 87.4 % on a fully diluted basis.
Further information can be found at
http://techfinancials.com.
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END
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