TechFinancials Agrees Option Deal For Diamond Exchange CEDEX.Com

LONDON (Alliance News) - TechFinancials Inc said it has entered into heads of terms for a deal ...

Alliance News 23 October, 2017 | 10:26AM
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LONDON (Alliance News) - TechFinancials Inc said it has entered into heads of terms for a deal to acquire a stake in a soon-to-be-incorporated online diamond exchange CEDEX.com, which uses block chain technology.

Under the agreement, it will make loan funding of USD400,000 available to CEDEX to develop its technology. This loan bears no interest, and TechFinancials said it can seek repayment of the loan once CEDEX has sufficient funds.

In consideration for this initial funding, CEDEX will, upon incorporation, supply TechFinancials with an option to buy a 90% stake in the firm at an exercise price of USD40,000, which may be offset against any amount outstanding under the loan. This option is exercisable for three years from the date of granted at the discretion of TechFinancials.

CEDEX is envisaged to be a blockchain online exchange for diamonds, providing a "novel way" to invest in diamonds, aligned with TechFinancials' "vision of simplifying trading instruments".

Shares in TechFinancials were down 14% at 4.50 pence.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Security Name Price Change (%) Morningstar
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TechFinancials Inc 5.50 GBX 0.00 -
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