Valereum PLC (AQSE:VLRM, FRA:6TJ, OTCQB:VLRMF), the Aquis-listed digital markets infrastructure company, has launched a regulated tokenised gold product and entered an exclusivity agreement with its largest shareholder, Quorium Global Photonics (QGP), as the two companies work towards a full strategic integration within 30 days.
The new product, VGOLD, is described as an institutional-grade, asset-backed and yield-bearing digital token supported by gold assets, subject to final verification and regulatory approvals.
Its underlying instrument, VGOLD-CORE, is a QGP token backed by what the company describes as billions of dollars of production-ready, in-ground gold reserves and gold bullion, which will be verified by an independent expert as part of a forthcoming definitive agreement.
Separately, Valereum has agreed the first coupon payment under a share subscription agreement with QGP relating to $200 million in medium-term notes issued to the company in January.
The $3.9 million coupon will be paid partly in cash, due within five business days, and partly in VGOLD-CORE tokens upon signing of the definitive agreement.
As security, QGP has pledged all its ordinary shares and warrants in Valereum until the tokens are delivered and the agreement is concluded.
The proposed integration would combine Valereum's digital market infrastructure with QGP's asset tokenisation capabilities, with the two companies also looking to align revenue models and profit-sharing arrangements.
The transaction is classified as a related party transaction under Aquis Growth Market rules because two directors, Pieter Scholtz and Gerhard Kotzee, sit on the boards of both companies, with QGP holding a 49.8% stake in Valereum.
Executive chair James Bannon said the company's next major milestone was securing a US listing, adding that it was "working at pace" with counterparties to achieve this.