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Coinsilium Group Limited: JV Agreement with IOV Labs and Strategic Business Review

Coinsilium Group Limited (COIN)
Coinsilium Group Limited: JV Agreement with IOV Labs and Strategic Business Review

08-Jul-2020 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


("Coinsilium" or the "Company")


Coinsilium: Joint Venture Update


Execution of Joint Venture Agreement with IOV Labs and Strategic Business Review


London, UK, 8 July 2020 - Further to its announcement of 28 January 2020, Coinsilium Group Limited (AQSE:COIN) is pleased to provide an update regarding its Joint Venture Agreement (JVA) with IOV Labs Limited (IOV) to establish a Joint Venture Company (JVC) in Singapore and notification of a Strategic Business Review of the Company's operations and investments.


IOV is a Gibraltar registered company and parent to RSK, the developers of the first smart contract platform secured by the Bitcoin network in which Coinsilium holds a vesting interest of 1,951,846 RIF tokens. IOV is a global Blockchain Protocol company with more than one hundred employees and contractors worldwide, focused on developing various implementations of the RSK Smart Contract Network, RIFOS and Taringa! platforms. As announced on 30 September 2019, Taringa! was acquired by IOV and is one of the largest Spanish language social media apps with a 30 million strong social network and over 1,000 active online communities.




      IOV Labs Limited and Coinsilium Group Limited have executed a Joint Venture Agreement to form a Joint Venture Company in Singapore.

  • Southeast Asia is one of the world's fastest growing internet economies and on track to reach $300 billion gross merchandise value by 2025

      Each shareholder will hold 50% of the total shares of the JVC at incorporation.  

  • JVC will be financed by IOV by way of a loan which is to be repaid from the future revenues of the JVC

      Eddy Travia, Coinsilium's CEO, to represent Coinsilium as a Director of the JVC.

      The business of the JVC will be to promote and commercialise IOV's products, services and technologies, principally in the Asian markets.


Coinsilium CEO Eddy Travia commented: "This is the start of an exciting new journey of collaboration for Coinsilium with one of the world's leading blockchain networks. The management of both Coinsilium and IOV share the common vision that blockchain technology can change society for the better and we are already starting to see numerous beneficial blockchain applications manifesting in the real economy, especially in Southeast Asia's fast- growing economies where our JVC will operate.


We look forward to playing our part in the adoption process and supporting the large-scale implementation of the RSK blockchain and RIF solutions in core industries such as energy, transportation, natural resources, finance, health care and commerce. This joint venture represents a major step in Coinsilium's development and is set to be one of the key drivers of value creation for Coinsilium's shareholders in the years to come. We look forward to providing the market with regular updates as the joint venture takes shape and progresses."


Diego Gutierrez Zaldivar, CEO of IOV, commented: "We are very excited about our joint venture with Coinsilium in Asia. Asia has always been a key market for us, as the immense innovation in the region will be integral to realising blockchain's full potential. Our strategic partnership with Coinsilium will enable our platforms to boost their ecosystem, accelerating progress toward our shared goal of increased adoption of blockchain technology in the region. Working together with Coinsilium, IOV will establish an important footprint in the region, forge new relationships with key partners and solidify the long-term success and development of the RSK blockchain which in turn will help to generate RSK blockchain mass adoption."


Execution of Joint Venture Agreement with IOV


The Company announced on 28 January 2020 that it had completed a Strategic Investment Agreement with IOV to invest GBP250,001 in Coinsilium by way of a private placement in the Company at 2.65p per share. IOV now holds an interest of 6.94% in Coinsilium. In tandem with the Strategic Investment Agreement, IOV and Coinsilium executed a Memorandum of Understanding ('MOU') to establish a JVC in Singapore to promote and commercialise IOV's products, services and technologies principally in the Asian markets to corporations, entrepreneurs, governments and NGOs. Another key objective of the JVC is to promote the adoption in the region of the RIF token which powers the ecosystem of solutions developed by IOV and its partners and developers around the world. The MOU further specified that Eddy Travia, CEO of Coinsilium, is to be appointed as director of the JVC and as part of his role in the JVC, he will provide services to IOV which include acting as IOV's Regional Director for Asia-Pacific.


The Company is pleased to announce that the Joint Venture Agreement ('JVA') with IOV has now been finalised and executed and the company formation process in Singapore is currently underway. Further documentation including a Loan Agreement and Services Agreement with the JVC are in the final review process and subject to execution, at which point the Company will provide a further update to the market.  


Asia Region Blockchain Market


Southeast Asia is one of the world's fastest growing internet economies. Citing Google & Temasek / Bain, e-Conomy SEA 2019,  there were more than 360 million internet users in Southeast Asia as of 2019. The Southeast Asia internet economy has hit $100 billion gross merchandise value and is on track to reach $300 billion by 2025. E-commerce, logistics and financial companies need to adapt to this fast growth of digital services and payments - digital payments reached $600 billion gross transaction value in 2019 and on track to exceed $1 trillion by 2025 (1). This makes Southeast Asia a particularly fertile market for the provision of the RIF Enterprise and RIF Open Finance solutions developed by IOV.


(1)   Source: Google & Temasek / Bain, e-Conomy SEA 2019 https://www.bain.com/insights/e-conomy-sea-2019/


Strategic Business Review


This announcement today represents a transformational event for Coinsilium and presents a unique commercial opportunity to create meaningful value for shareholders. It is also recognised that Coinsilium's commitment to the JVC will require a commensurate rebalancing and shift in focus in terms of the Company's existing scale, operational capacity and resources.


In order to address these challenges, the Company will shortly announce the commencement of a Strategic Business Review process to cover Coinsilium's operations and investments.

The ultimate objective will be to see the Company best positioned to maximise its potential, both from within the scope of its joint venture with IOV and also from Coinsilium's operational base in Gibraltar, which is fast becoming a pre-eminent global regulatory jurisdiction for innovative financial technology, including cryptocurrencies. The timing of this review is also particularly pertinent, given the accelerating pace of growth within the Decentralised Finance (DeFi) and Crypto Finance sectors.


A comprehensive overview of the Strategic Business Review process will be provided to the market within the next 7 days.


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


For further information, please contact:


Coinsilium Group Limited

Malcolm Palle, Executive Chairman

Eddy Travia, Chief Executive

+44 (0) 7785 381 089




Peterhouse Capital Limited

Guy Miller / Mark Anwyl

(AQSE Growth Market Corporate Adviser)

+44 (0) 207 469 0930



SI Capital Limited

Nick Emerson


+44 (0) 1483 413 500



Notes to Editor


About Coinsilium


Coinsilium is a focused Blockchain, DeFi and Crypto Finance venture operator. As the first ever IPO of a blockchain company in 2015, Coinsilium has harnessed its experience and wide-ranging network to invest in leading blockchain projects such as RSK/IOV Labs, Indorse and Blox.


In July 2020 Coinsilium executed a Joint Venture Agreement with global  blockchain protocol company IOV, to establish a 50/50 Joint Venture Company in Singapore to promote and commercialise IOV's products, services and technologies, principally in the Asian markets and to promote the adoption in the region of the RIF token which powers the ecosystem of solutions developed by IOV, and its partners and developers around the world.


Coinsilium shares are traded on the AQSE Growth Market, the primary market for unlisted securities operated by Aquis Stock Exchange, a Recognised Investment Exchange under the Financial Services and Markets Act 2000.


For further information please visit www.coinsilium.com or follow @CoinsiliumGroup on Twitter


About IOV Labs Limited

IOV is focused on developing the platforms needed for a new blockchain-based financial system that will enable worldwide financial inclusion and bridge the gap between these nascent technologies and mass adoption.

The organization is currently developing various implementations of the RSK Smart Contract Network, RIF and Taringa's platforms. The RSK Network is the most secure Smart Contract platform in the world, as it relies on Bitcoin's hash power. RIF is a suite of open and decentralized infrastructure protocols that enable faster, easier and scalable development of distributed applications (dApps) within a unified environment to enable mass adoption of Bitcoin and RSK and Taringa!  - Latin America's largest Spanish speaking social network with 30 million users and 1,000 active online communities - through the integration with Bitcoin, RSK and RIF will help shape the Internet of the Future, which intends to confer on individuals full control of their information and value.

For further information please visit: www.iovlabs.org ,www.rsk.co , www.rifos.org www.taringa.net


ISIN: VGG225641015
Category Code: MSCM
Sequence No.: 74343
EQS News ID: 1088627

End of Announcement EQS News Service


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Market: AQSE
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