Coinsilium, a blockchain, DeFi, and crypto finance venture operator and one of the earliest publicly listed blockchain companies, announced it has received a GBP330,000 (USD 439,000 equivalent) investment from Gibraltar-based IOV Labs (IOV), the founding company behind RSK, for an increased 13.9% stake in the company. The investment will allow Coinsilium to fund its proposed ventures, activities, and budgeted commitments through to January 2022.
Increased Stake in Coinsilium
Under the new investment agreement, IOV will invest GBP330,000 in Coinsilium by way of a private placement for 11,000,000 new ordinary shares of no-par value (the Subscription Shares) at 3p per share, increasing its shareholding interest in the company to 13.90%, excluding warrants and treasury shares. One warrant will be 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.
Agreement to Expand IOV Labs Asia Globally
Alongside this investment comes an agreement between the two companies to expand the reach of their IOV Labs Asia Joint Venture Company (the JVC) and its offerings under the RSK brand beyond Asia.
Eddy Travia, CEO of Coinsilium commented: “We welcome this timely follow-on investment from IOV Labs. Both IOV Labs and Coinsilium share big ambitions for the Company and its potential to create the next generation of digital asset platforms as a blockchain, DeFi, and crypto finance venture operator. Having a partner and significant shareholder with the size and scale of IOV Labs provides Coinsilium with a solid foundation from which to launch a range of ambitious blockchain and crypto finance ventures, targeting the markets where we have identified the greatest potential. The timing of this follow-on investment and the expansion of the scope of the IOV Labs Asia JV is also particularly favorable, given the burgeoning growth and activity, we are seeing in the sector, largely driven by the resurgent cryptocurrency markets which are now trading at levels surpassing those seen at the end of 2017. We look forward to providing the market with further development updates at this exciting and pivotal time for both the Company and shareholders.”
IOV’s investment in Coinsilium follows a strategic business review of the company’s operations and equity investments, to ensure it is well-positioned to capitalize on new opportunities in the Decentralised Finance (DeFi) and crypto finance sector, particularly in lending, staking, and stable assets. It also comes as Coinsilium’s shares commenced cross-trading on the OTCQB Venture Market in the United States in October 2020, providing access to a wider investor base for future growth.
Diego Gutierrez Zaldivar, CEO of IOV Labs commented: “We are very pleased with the progress the Joint Venture with Coinsilium has made over the course of the year, which comes at a time where we are seeing unprecedented interest in decentralized financial applications on the Bitcoin Network, with its inherent efficiency and security. With the deepening of our strategic relationship, we are now optimally placed to capitalize on the opportunities in front of us to boost adoption in the RSK Blockchain and RSK Infrastructure Framework (RIF) ecosystem in the Asian region and now also, in other key markets globally.”