TechFinancials shifts deadline for selling MarketFinancials to end-October

TechFinancials Inc (LON:TECH) has earlier today provided an update on its plans to sell its loss-making business MarketFinancials Limited.

Let’s recall that, in June this year, TechFinancials said it had agreed to extend the completion date of the conditional Share Purchase Agreement to sell its entire holdings in MF for €100,000 to August 31, 2019. In August, the company said the deadline is shifted to September 30, 2019.

Today, TechFinancials explains that it has agreed to extend the completion date of the conditional Share Purchase Agreement to sell its entire holdings in MF to October 31, 2019.

Back in June, the company said the Seychelles Financial Services Authority had given its approval in principle to M&N Equity Research Ltd, a Cypriot entity, to acquire MF. The original Share Purchase Agreement with Proverial Ltd has also been assigned to M&N. TechFinancials said M&N wishes to proceed with the transaction and has paid the full purchase price to the company. Completion of the acquisition remains subject to, inter alia, the full Seychelles Financial Services Authority consent and registration of the share transfer.

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.