TechFinancials keeps waiting for Seychelles regulator to approve MarketFinancials sale
The consent of the Seychelles Financial Services Authority is required under the sale purchase agreement by June 30, 2019.
TechFinancials Inc (LON:TECH) hasn’t yet closed the sale of subsidiary MarketFinancials Limited as the deal still needs to get regulatory approvals. This becomes clear from an LSE filing made today by the company.
The sale of the company’s subsidiary MarketFinancials Limited for a consideration of €100,000 was initially announced in January 2019. Until February 28, 2018, MarketFinancials was the provider of market maker services and risk management to B.O. Tradefinancials (BOT), a binary options business. MarketFinancials’ only source of income in 2018 was derived from the provision of market maker and risk management services to BOT and, as a consequence of the cessation of BOT’s activities, MF has not traded since the end of February 2018.
As at end-June 2018, MarketFinancials had net assets of approximately US$88,600 and was held on the balance sheet of the Group at nil carrying cost. For the year to December 31, 2017, it made a net profit of approximately US$45,600.
In today’s update, TechFinancials says the sale of MarketFinancials is progressing but remains conditional on the consent of the Seychelles Financial Services Authority. This approval is yet to be received and is required under the sale purchase agreement by June 30, 2019.
Also today, TechFinancials said trading in its historical business remains challenging, mainly due to tightening regulation. The company will be reporting revenues of approximately US$7.6 million for the year, on which it will report an operating loss.