Coinsilium Group Limited: IOV Labs Asia Joint Venture Update (1472949)

Coinsilium Group Limited (COIN) Coinsilium Group Limited: IOV Labs Asia Joint Venture Update 26-Oct-2022 / 17:20 GMT/BST Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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COINSILIUM GROUP LIMITED

("Coinsilium" or the "Company")

Coinsilium Group Limited: IOV Labs Asia Joint Venture Update

London UK, 26 October 2022, Coinsilium Group Limited (AQSE: COIN) (OTCQB: CINGF), the Web3 investor, advisor, and venture builder hereby provides an update on the status of IOV Labs Asia PTE. Ltd ("IOV Labs Asia"), the Singapore-based Company's 50/50 joint venture company ("JVC") with IOV Labs Ltd ("IOV Labs").

Background

On 28 January 2020, the Company announced that it had completed a Strategic Investment Agreement with IOV Labs to invest GBP250,001 in Coinsilium by way of a private placement in the Company at 2.65p per share. In tandem with the Strategic Investment Agreement, IOV and Coinsilium executed a Memorandum of Understanding ("MOU") to establish the 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, was to be appointed as director of the JVC and as part of his role in the JVC, to provide services to IOV which include acting as IOV's Regional Director for Asia-Pacific.

On 8 July 2020, the Company announced the execution of a Joint Venture Agreement ("JVA") between IOV Labs and Coinsilium to form the JVC in Singapore. However, the Covid19-induced strict and broad travel restrictions imposed in Asia, and more particularly in Singapore, over the past two and a half years have contributed to prevent the JVC from becoming fully operational as initially planned. In the interim, both parties have continued to collaborate, however, in recognition that the market has evolved significantly since the original scope of the JVC was envisaged, and as reported in Coinsilium's annual report and more recently in its Interim Financial statements, the parties have been involved in discussions for the purpose of re-evaluating the original scope of the JVC.

The operations of the JVC are currently funded through a loan agreement between IOV Labs and the JVC with repayment terms coming into effect from February 2023. Coinsilium is not a party to the loan agreement and there are no obligations upon Coinsilium for repayment of the loan made to the JVC.

Whilst IOV Labs contribution to the JVC comes by way of a loan and the supply of products, services and technologies, Coinsilium's contribution has been met by making a considerable proportion of its CEO, Eddy Travia's time available to the JVC, as Regional Director for IOV Labs in Asia and his relocation to Singapore to provide in situ advisory, support, and management services. Mr Travia is recognised as the key individual in the provision of Coinsilium's services under the Service Agreement between the JVC and Coinsilium.

IOV Labs Asia Status Update

IOV has recently advised the Company that it has been re-structuring its goals, targets and strategy and has proposed that Coinsilium considers terms under which the Company would be prepared for the current JVA to be replaced with an alternative business model.

The Company has therefore advised IOV Labs that it would be willing to review the objectives of the JVA with a view to commencing negotiations towards a mutually agreeable outcome which may or may not include an alternative business model. The Company is hopeful that an expedient resolution to this matter may be achieved, on terms that are fair and reasonable to both parties, given the shared history that exists between Coinsilium and IOV Labs, however there is no certainty that this will be the case. The Company will also ensure that shareholders are kept updated on the progress of discussions between the parties in a timely fashion through regulatory market updates.

Outside of the JVC, as stated in the Company's Interim Financial Statements reported on 30 September 2022, the Company's commercial focus remains firmly on its value generative investment and advisory activities where steady growth is expected to continue over the remainder of this year and well into 2023, particularly in the NFT (Non Fungible Token), metaverse and Web3 space. The Company will also be looking to selectively add to its portfolio of investments, in the light of current market conditions, when favourable terms present themselves.

Disclosure

IOV Labs currently holds 25,934,000 shares in Coinsilium representing 14.84% of its outstanding shares. This update follows the update provided in the Company's Interim Financial statements released on 30 September 2022.

Coinsilium Chairman Malcolm Palle and non-executive director Wayne Almeida are also non-executive directors of IOV Labs.

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

Coinsilium Group Limited                [phone] 
Malcolm Palle, Executive Chairman       [phone] 
Eddy Travia, Chief Executive            www.coinsilium.com 
 
Peterhouse Capital Limited 
Guy Miller / Mark Anwyl                 [phone] 
(AQSE Growth Market Corporate Adviser) 
 
SI Capital Limited 
Nick Emerson                            [phone] 
(Broker) 

Notes to Editor

About Coinsilium

Coinsilium is a focused Web3 Investor, Advisor and Venture Builder based in Gibraltar, a pre-eminent global regulatory jurisdiction and a leading hub for innovative financial technology. In 2015, Coinsilium became the first blockchain company to IPO. The Company has evolved to develop revenue-generating strategic advisory services and is a highly regarded innovator with proven technological and commercial expertise and development capabilities in the NFT arena and also within Open Finance.

Coinsilium has developed an array of commercial partnerships and joint ventures around the world to support its development capabilities, giving it access to best-in-class tech experts, a strong network, and asserting its profound industry profile. It has a 50:50 venture with IOV Labs in Singapore, enabling the promotion and commercialisation of RSK's products, services and technologies in global markets; and has partnered with blockchain technology experts Indorse to create Nifty Labs, a Non-Fungible Token ('NFT') technology development studio in Gibraltar.

Coinsilium shares are traded on the AQSE Growth Market in London, under the ticker symbol "COIN", and on the OTCQB Venture Market in the United States under the ticker symbol "CINGF".

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ISIN:           VGG225641015 
Category Code:  MSCM 
TIDM:           COIN 
Sequence No.:   197095 
EQS News ID:    1472949 
 
End of Announcement  EQS News Service 
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October 26, 2022 12:20 ET (16:20 GMT)