DJ Coinsilium Group Limited: Final Results for the year ended 31 December 2020
Coinsilium Group Limited (COIN)
Coinsilium Group Limited: Final Results for the year ended 31 December 2020
01-Jul-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(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")
1 July 2021
Final Results for the year ended 31 December 2020
STATEMENT OF THE BOARD OF DIRECTORS
Coinsilium Group Limited ("Coinsilium", the "Group" or the "Company"), is pleased to announce its Final Results for the
year ended 31 December 2020.
Financial summary
- The net fair value gain on financial assets in 2020 was GBP565,713 compared to a gain of GBP572,805 in 2019
- Total Comprehensive Gain of GBP661,139 compared to a loss of GBP106,378 in 2019
- Gain for the period from continuing operations GBP309,590 compared to a loss of GBP258,943 in 2019
- Gain per share of 0.218 pence compared to a loss of 0.195 pence in 2019
- Financial assets at fair value through profit or loss amounted to GBP2.29m at 31 December 2020 (31 December 2019:
financial assets at fair value through profit or loss of GBP1.78m)
- As at 31 December 2020 cash and cash equivalents amounted to GBP173,298 (31 December 2019: GBP235,079)
* Gain for the period includes gain in value of tokens over the period of GBP241,473.
The Directors present their report, together with the Group Financial Statements and Auditor's Report, for the year
ended 31 December 2020. The comparative period is the year ended 31 December 2019.
The Directors do not recommend the payment of a dividend for the year ended 31 December 2020.
Operational summary
- Strategic review launched and concluded with Open Finance and NFT market segments identified as focus of Group
strategic direction moving forward.
- Joint venture established with IOV in Singapore to commercialise IOV's products, services and technologies.
- Join venture initially limited to Asia, but remit latterly broadened to worldwide.
- Further partnership agreements executed with RedFOX Labs, to develop and facilitate the trading of Non-Fungible
Tokens (NFTs) across various prospective market sectors, and the Gibraltar Philatelic Bureau for creation of a
commemorative limited edition Cryptocurrency Postage Stamp tied to blockchain based NFT.
- Trading on the OTCQB Venture Market in the US commenced in October 2020, providing Coinsilium with access to a new
and materially larger pool of prospective investors.
The Directors present their report, together with the Group Financial Statements and Auditor's Report, for the year
ended 31 December 2020. The comparative period is the year ended 31 December 2019.
Review of the Year
Coinsilium has now completed its sixth year of operations as a listed company. In July 2020, we launched a strategic
review with the ultimate objective to best position Coinsilium to maximise its potential. This strategic review
concluded in December 2020, identifying the Open Finance and NFT market segments as emerging blockchain technology
opportunities with significant growth and revenue generating potential. The Open Finance and NFT sectors were also
recognised to be sectors where Coinsilium is well-positioned to play to its strengths, given its strong industry
profile, relationships and global partnership network. Although the findings of the strategic review were announced
towards the end of the year, much progress was made in 2020 which has enhanced the Company's prospects and ensured that
it entered 2021 in a very strong position. This progress included various agreements and partnerships to ensure that
Coinsilium is well positioned to take advantage of the very sizable opportunities that are now open to it.
Partnerships and Agreements: strengthening our geographic footprint and enhancing our technology offering
IOV Labs ("IOV") - In January 2020, Coinsilium entered into a Strategic Investment Agreement and signed a Memorandum of
Understanding with IOV Labs, a Gibraltar registered company and parent to RSK, the developers of the first smart
contract platform secured by the Bitcoin network. IOV completed an investment of GBP250,001 by way of a private
placement in the Company, subscribing for 9,434,000 new ordinary shares of no-par value ("Ordinary Shares") at 2.65p
per share. In July 2020, Coinsilium announced an update regarding this Joint Venture Agreement (JVA) with IOV Labs to
establish a Joint Venture Company (JVC) in Singapore. Under this agreement, each shareholder holds 50% of the total
shares of the JVC at incorporation with the JVC financed by IOV by way of a loan which is to be repaid from the future
revenues of the JVC.
In December 2020, Coinsilium announced it completed a follow-on investment agreement with IOV Labs Ltd and an expansion
of the geographical scope of the IOV Labs Asia Joint Venture Company from regional to worldwide. IOV invested
GBP330,000 in Coinsilium by way of a private placement, subscribing for 11,000,000 new ordinary shares of no-par value
(the "Subscription Shares") at 3p per share. One warrant was subsequently issued for every two shares subscribed for,
with an exercise price of 4.5p per new ordinary share, and a life to expiry period of two years from the admission of
the Subscription Shares.
Indorse Pte. Ltd. ('Indorse'). In August 2020 Coinsilium announced its appointment as an advisor to Indorse in respect
to its forthcoming initiative to revive the token economics of its IND token through a new DeFi based model.
RedFOX Labs Joint Stock Company ("RedFOX"). In December 2020, Coinsilium was pleased to report that, in line with the
Company's new business development strategy, its wholly owned subsidiary Coinsilium (Gibraltar) Limited concluded a
Technical Development and Support Agreement with Vietnam-based RedFOX Labs Joint Stock Company ("RedFOX"), to support
the creation of a range of Virtual Asset and Digital Collectible marketplaces and to facilitate the trading of
Non-Fungible Tokens (NFTs) across various prospective market sectors.
The Gibraltar Philatelic Bureau Ltd. In December 2020, Coinsilium announced that it had concluded an agreement with The
Gibraltar Philatelic Bureau Ltd for the creation of a commemorative limited edition Cryptocurrency Postage Stamp to be
released in Q2 2021. The Crypto Postage Stamp is to be tied to the release of a blockchain based Digital Collectible,
or non-fungible token ('NFT') counterpart, to be exclusively produced by Coinsilium in collaboration with Vietnam-based
RedFOX Labs Joint Stock Company.
Other developments
In October 2020, Coinsilium's ordinary shares began cross-trading publicly on the OTCQB Venture Market ("OTCQB") in the
United States under the ticker symbol "CINGF". Coinsilium's shares had previously been quoted on Pink Open Markets
(also known as 'Pink Sheets'), which provided some measure of limited and restricted US trading. By upgrading the
listing of its shares to the OTCQB, these limits and restrictions have been removed, providing access to a new and
materially larger pool of prospective US investors.
On 29 December 2020, Coinsilium announced that it had agreed to sell 1,450,000 of its 6,130,000 ordinary shares that
are held in treasury, at 4.5 pence per share for gross proceeds of GBP65,250.
For the Group's and Company's 31 December 2020 financial statements, the COVID-19 outbreak and the related impacts are
considered non-adjusting events. There has been no significant disruption to the Group's and Company's activities to
date from COVID-19, although the Board continues to monitor any risk.
Post year end
Since the period end, significant progress has been made to consolidate Coinsilium's position within the NFT and Open
Finance spaces.
Nifty Labs Limited
In March 2021, the Group's wholly owned Gibraltar subsidiary, Terrastream Limited ('TerraStream'), entered into a
Memorandum of Understanding ('MoU') with Indorse Pte. Ltd. ('Indorse'), a Singapore company in which Coinsilium holds a
10% equity interest, to form a Partnership or Joint Venture in order to launch a Non-Fungible Token ('NFT') technology
development studio in Gibraltar. The partnership, to be based in Gibraltar and conducted through TerraStream, was
renamed 'Nifty Labs Limited' and trades under the commercial name 'Nifty Labs'. Additionally in March 2021, Coinsilium
announced that Nifty Labs and Indorse continue to advance discussions towards a formal agreement while the Company
agreed to provide Nifty Labs with an initial working capital and development facility of up to GBP250k. Whilst
discussions regarding the partnership remain ongoing, it has been agreed that, in the event that any commercial
agreements relating to in-house projects or prospective third-party clients are concluded ahead of the completion of
the Partnership Agreement, as an interim solution, such commercial agreements shall be undertaken with a provision for
a revenue share agreement between Nifty Labs and Indorse, the terms of which shall be established in each case.
In May 2021, Nifty Labs commenced development work on a new Non-Fungible Token ("NFT") project to create an 'NFT on
Bitcoin' marketplace platform powered by the RSK blockchain, the smart contract platform secured by the Bitcoin
network. Development work on an NFT marketplace platform has commenced and is expected to take 6 months to complete.
The initial focus of the marketplace will be on NFT use-cases such as digital art, music, sports, gaming and metaverse
assets. RSK is prioritising a token bridge build enabling the transfer and movement of RSK blockchain standard NFTs to
other blockchain standard NFTs, including Ethereum ERC721.
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