TechFinancials updates on sale of loss-making MarketFinancials
The company has agreed to extend the completion date of the agreement to sell its entire holdings in MF for €100,000 to August 31, 2019.
TechFinancials Inc (LON:TECH) has provided an update on the planned sale of its non-core loss-making asset MarketFinancials Limited.
As FinanceFeeds has reported, the sale remains conditional on the consent of the Seychelles Financial Services Authority. This approval was initially required under the sale purchase agreement by June 30, 2019.
In an announcement on Friday, June 28, 2019, 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.
The Seychelles Financial Services Authority has 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 says 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. To this end, the Company and M&N have signed an amendment to the agreement which include provisions for M&N to pay additional expenses to TechFinancials if the transaction, either completes after June 30, 2019, or does not complete due to M&N not receiving final consent from the Seychelles Financial Services Authority. Consequently, in the event the transaction does not complete, TechFinancials will refund the consideration to M&N, less any costs incurred.
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.