Lionsgold Limited - Increase of ownership of Fintech Gold Company

12 July 2017

 

Lionsgold Limited

 

Increase to Majority Ownership of Fintech Gold Company

 

Lionsgold Limited ("Lionsgold", "LION" or the "Company"), the gold-focused exploration company with assets in India and Finland, and significant shareholder of a physical gold holding and trading exchange, is pleased to announce that it has agreed terms to become the majority owner of gold-focused financial technology company, TRAC Technology Ltd ("TRAC").

 

Highlights

 

·      Lionsgold to increase to a 55% majority shareholding in TRAC.

 

·      Lionsgold's CEO, Cameron Parry, to buy a 5% shareholding in TRAC.

 

·      Lionsgold to subscribe £157,525.28 for 649 new shares at £242.72 per share (together with Mr. Parry's subscription, the "Subscription Funds").

 

·      Concurrently TRAC to convert outstanding debts owed to LION (£16,769) and to TRAC's CEO (£4,620) for 69 and 19 new shares respectively.

 

·      Lionsgold's CEO to be appointed to TRAC Board as Non-Executive Chairman.

 

·      Together with the balance of unspent funds available from capitalising the India JV as announced on 3 May 2017, and the new funds now from Lionsgold plus £27,912.80 from Cameron Parry, TRAC shall have approximately £220,000 in working capital.

 

·      TRAC aiming to roll out a suite of alternative-banking gold-based products during H2 2017, including a direct debit card and mobile phone banking-style app, as well as developing a gold-backed cryptocurrency planned for release during 2018.

 

Cameron Parry, Chief Executive Officer of Lionsgold, commented: "We are delighted to report that Lionsgold has acquired a majority shareholding, in the gold-focused financial technology company behind "The Real Asset Company" and "IndexGold" brands, TRAC Technology Ltd.  This transaction sees TRAC become a trading subsidiary under LION's group structure and is an important piece for delivering our vision of a gold exploration, production and application 'mine to market' business model.

 

"TRAC is currently a small business with established banking and regulatory associations that provide the foundation of an exciting opportunity for LION, and whilst a new digital marketing strategy is being developed and following LION's recent placing, the timing was opportune to commit working capital and resources behind the enterprise and achieve a majority shareholder position.

 

"TRAC will retain the services of TRAC's founder, Mr Ralph Hazel, as CEO and I look forward to working with Ralph at board level to progress an ambitious programme of new product development and market penetration.  After trying to increase traction in the UK market, it is the intention for TRAC to leverage off Lionsgold's India network of contacts with a view to delivering certain products to the India market.

 

"Initially the gold-based products planned for development and rollout this year are a pre-paid debit card linked to clients' gold accounts and a mobile banking-equivalent smartphone app.

 

"Additionally, we plan to explore the ability to enable ownership of gold, a traditional store of value, with the utility and immediate settlement and clearing that blockchain technology provides as a new form of cryptocurrency, as part of future products planned."

 

 

Details of the Transaction

 

As announced on 8 June 2017, Lionsgold intended to apply part of the proceeds from its recent placing to advance its strategic plans in relation to its Fintech Gold division.

 

Having acquired initially a 27.3% shareholding in TRAC as announced on 1 November 2016, in conjunction with entering into a joint venture ("JV") targeting the India market, on 3  May 2017, LION announced it had agreed with TRAC that Lionsgold would capitalise its India JV interest and unspent balance of original JV working capital committed, into new shares in TRAC, and thereby increasing its holding to 37.7%.  Lionsgold has now agreed to inject new working capital into TRAC whilst converting some debt owed to equity and seeing LION increase its shareholding to a 55% ownership position.  Concurrently, Lionsgold CEO Cameron Parry has agreed to acquire 5% of TRAC (together a combined 60% holding) and join the board of TRAC as Non-Executive Chairman to lead corporate strategy.

 

The Subscription Funds shall be paid in four equal instalments subject to the following milestones:

Deal completion and new shares being issued,

Completion of phase 2 digital marketing strategy and gold account debit card being released,

Mobile phone 'banking' app being released,

650 active users holding precious metals via the TRAC/IndexGold gold-backed alternative bank account products.

 

TRAC's CEO and Lionsgold Limited will each be issued with 100 management options exercisable at a 50% premium to current funding round with a three-year term.  TRAC's CEO will be issued with an additional 86 management options on the same terms but vesting in year 2 subject to TRAC reaching 1,000 active clients.

 

 

About TRAC

 

TRAC was founded in 2010 in the UK and developed a gold and silver trading platform, allowing users to easily track and trade physical gold and silver.

 

TRAC currently generates revenues through transaction and storage fees.  When purchasing gold or silver through TRAC's platform, clients take direct ownership of the physical gold/silver in their own name with TRAC acting as custodian storing the asset at vaults across London, Singapore, Geneva and Hong Kong.  As at today's date TRAC stores on behalf of its clients approximately 120 kilograms of gold and circa 4,400 kilograms of silver.

 

As at 31 March 2016, TRAC had an unconsolidated net asset value of £4,051 and reported an unconsolidated loss before tax for the year then ended of £18,488.  As at 31 March 2016, The Real Asset Co. Limited, TRAC's wholly owned subsidiary, had an unconsolidated net asset deficit of £51,417 and reported an unconsolidated loss before tax for the year then ended of £21,437.

 

Following the new shares being issued, TRAC shall become a majority controlled subsidiary of Lionsgold. 

 

 

For further information, please contact:

 

Lionsgold Limited

Cameron Parry (Chief Executive Officer)

Luke Cairns (Executive Director)

 

Tel: +44 (0) 20 7397 2880

 

WH Ireland Limited (Nominated Adviser)

Tim Feather

Ed Allsopp

 

Tel: +44 (0) 113 394 6600

 

Smaller Company Capital Limited (Joint Broker)

Rupert Williams

Jeremy Woodgate

 

Beaufort Securities Limited (Joint Broker)

Elliot Hance

 

Tel: +44 (0) 20 3651 2911

 

 

 

Tel: +44 (0) 20 7382 8300

Tavistock (Financial PR)

Tel: +44 (0) 20 7920 3150

Emily Fenton


Edward Lee


 

 

About LIONSGOLD

 

Lionsgold is a London Stock Exchange AIM market quoted, gold-focused exploration company, with gold assets in India and Finland and a significant shareholding in a physical gold and silver online vaulting and trading platform.

 

Lionsgold's three core focuses are:

·      Strategic partnership with leading India gold exploration and mine development company, Geomysore, in which Lionsgold owns 20.5%;

·      Physical gold holding and trading financial technology platform for the UK, India and other jurisdictions; and

·      Gold exploration and production in Finland.

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DATE HEADLINE
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2011-12-08 17:24:46 Kolar Gold Limited - Result of AGM
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2013-03-25 07:13:28 Kolar Gold Limited - Half Yearly Report
2013-01-28 07:00:06 Kolar Gold Limited - Trading Update
2013-01-04 10:10:02 Kolar Gold Limited - Admission of Ordinary Shares
2014-12-22 16:02:58 Kolar Gold Limited - Result of AGM
2014-11-28 07:00:23 Kolar Gold Limited - Notice of AGM
2014-11-27 07:53:24 Kolar Gold Limited - Final Results
2014-11-27 07:00:11 Kolar Gold Limited - GMSI Investment and Jonnagiri Update
2014-07-24 10:11:06 Kolar Gold Limited - Director/PDMR Shareholding
2014-07-15 07:00:16 Kolar Gold Limited - Company Update
2014-03-31 11:39:42 Kolar Gold Limited - Half Yearly Report
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2014-02-11 09:26:51 Kolar Gold Limited - Holding(s) in Company
2015-12-31 12:02:55 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) Kolar Gold
2015-12-31 10:40:22 Kolar Gold Limited - Result of AGM
2015-12-22 18:34:11 John George Rodway - Form 8.3 - Kolar Gold Limited
2015-12-22 11:54:12 Kolar Gold Limited - FORM 8 PUBLIC OPENING POSITION DISCLOSURE
2015-12-18 10:26:37 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2015-12-17 10:46:09 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI)- Kolar Gold
2015-12-15 09:01:54 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2015-12-14 11:35:13 Kolar Gold Limited - Notice of AGM
2015-12-10 11:48:13 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2015-12-09 10:24:28 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2015-12-08 07:00:07 Kolar Gold Limited - Final Results, Board Changes & Offer Period
2015-11-16 07:00:04 Kolar Gold Limited - Replacement: Change of Registered Office
2015-11-11 07:00:10 Kolar Gold Limited - Change of Registered Office
2015-09-16 09:55:20 Kolar Gold Limited - Holding(s) in Company
2015-09-15 17:55:38 Kolar Gold Limited - Statement re. Press Comment
2015-03-30 11:34:09 Kolar Gold Limited - Half Yearly Report
2015-02-03 14:44:37 Kolar Gold Limited - Holding(s) in Company
2016-12-28 11:50:30 Result of AGM
2016-12-09 07:00:08 Kolar Gold Limited - Final Results
2016-11-23 07:00:08 Kolar Gold Limited - Appointment of New Director
2016-11-01 07:00:06 Kolar Gold Limited - Gold Trading Platform JV and Strategic Investment
2016-10-21 07:00:07 Kolar Gold Limited - Indian Resource Size Increase
2016-10-13 07:00:08 Kolar Gold Limited - Finland Gold Joint Venture MOU Signed
2016-09-30 17:10:02 Kolar Gold Limited - Directorate Change
2016-09-19 14:52:48 Kolar Gold Limited - Holding(s) in Company
2016-09-15 14:01:17 Kolar Gold Limited - Operational Review and Strategic Update
2016-08-22 07:25:32 Kolar Gold Limited - Holding(s) in Company
2016-08-03 11:26:37 Kolar Gold Limited - Holding(s) in Company
2016-08-02 09:36:38 Kolar Gold Limited - Holding(s) in Company
2016-08-01 11:13:47 Kolar Gold Limited - Holding(s) in Company
2016-07-29 15:10:42 Kolar Gold Limited - Holding(s) in Company
2016-07-29 08:23:30 Kolar Gold Limited - Change of Website Address
2016-07-27 14:04:50 Kolar Gold Limited - Result of General Meeting and Director's Dealing
2016-07-12 09:59:30 Kolar Gold Limited - Change of Adviser
2016-07-12 07:00:07 Kolar Gold Limited - Change of Adviser
2016-07-12 07:00:07 Kolar Gold Limited - Placing, Board Changes and General Meeting
2016-07-07 13:40:29 Kolar Gold Limited - Funding Approved at GMSI EGM
2016-07-06 07:00:07 Kolar Gold Limited - Update on GMSI - Drilling and Study
2016-06-10 16:36:19 Kolar Gold Limited - Director Notification
2016-06-10 16:35:03 Kolar Gold Limited - Director Notification
2016-06-07 17:07:27 Kolar Gold Limited - Stmnt re Share Price Movement
2016-04-19 09:55:52 Kolar Gold Limited - Change of Adviser
2016-04-01 08:56:57 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-03-31 11:08:18 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) -Kolar Gold Ltd
2016-03-30 13:45:07 Kolar Gold Limited - Half Yearly Report & Strategic Review Update
2016-03-30 11:50:41 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-03-29 09:12:49 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
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2016-03-23 11:24:47 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Plc
2016-03-22 10:36:53 Neil Greetham - Form 8.3 - Kolar Gold Limited
2016-03-22 10:31:58 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Plc
2016-03-21 11:43:00 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Plc
2016-03-18 12:23:44 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-18 10:22:09 Grant Stevens - Form 8.3 - Kolar Gold Limited
2016-03-17 10:39:12 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-16 11:14:47 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-15 11:49:18 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-14 18:00:00 Paul Johnson - Form 8.3 - Kolar Gold
2016-03-14 11:24:37 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-11 08:51:10 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-10 11:26:44 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-09 10:51:15 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-08 11:44:06 Kolar Gold Limited - Statement Re: Share Price Movement
2016-03-08 09:30:27 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-07 15:03:48 Andrew Neal - Form 8.3 - KOLAR GOLD
2016-03-07 12:07:06 Grant Stevens - Form 8.3 - Kolar Gold
2016-03-07 11:03:41 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-04 11:18:03 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-29 10:35:18 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
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2016-02-12 10:05:13 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-09 11:04:28 Kolar Gold Limited - Form 8.3 - Kolar Gold
2016-02-09 10:40:15 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-08 11:58:00 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-04 14:08:01 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-03 11:57:00 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
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2016-01-29 11:51:10 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
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2016-01-27 15:22:57 Kolar Gold Limited - Replacement - Form 8.3 - Kolar Gold
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2016-01-20 16:58:48 Kolar Gold Limited - Form 8.3 - Kolar Gold
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