TIDMLION
RNS Number : 3822F
Lionsgold Limited
20 February 2018
Lionsgold Limited
("Lionsgold", "LION" or the "Company")
Banking Platform Ownership and Gold Exclusive Secured
Lionsgold (LON: LION), the AIM quoted company focused on the
exploration, production and retail application of physical gold,
including the development of the Goldbloc digital currency,
announces that it has completed its due diligence and will proceed
with its planned investment into global banking and compliance
platform provider, Railsbank Technology Limited ("Railsbank").
Highlights:
-- Lionsgold confirms investment amount of GBP1.271 million from
existing funds to acquire 12.5% of Railsbank, on a fully diluted
basis, on completion of Railsbank's current pre-Series A funding
round.
-- Demonstrating management's belief in the viability and
potential value of Railsbank and its underlying technology,
concurrently with Lionsgold's investment, LION CEO Cameron Parry
and TRAC Technology CEO Ralph Hazell to co-invest GBP125,000 and
GBP50,000 respectively in Railsbank on the same terms as
Lionsgold.
-- By proceeding with the 12.5% equity investment, Lionsgold (or
its subsidiary nominee) has gained exclusive access to Railsbank's
banking platform in relation to deposits, currencies, tokens and
any other products connected with physical gold or gold
derivatives, for a period of three years.
-- Lionsgold CEO, Cameron Parry to be appointed to the board of
Railsbank as a Non-Executive Director.
-- Since the announcement of Binding Heads of Agreement ("BHA")
on 18 January 2018, Railsbank has announced it has entered into an
agreement with business to business card issuer, Cornercard UK, to
see Mastercard debit cards issued in connection with bank accounts
provided through the Railsbank platform.
Lionsgold Chief Executive Officer, Cameron Parry, commented:
"Lionsgold is delighted to confirm that the Company has completed
its due diligence process and is proceeding with its investment,
funded from exisiting cash resources, to acquire 12.5% of Railsbank
and secure the exclusive use of their banking and compliance
platform for physical gold and gold derivatives to be held within
bank accounts.
"This transaction is fundamentally important for LION and was a
key strategy and priority to complete in the lead up to the release
of its digital gold currency Goldbloc; scheduled for launch during
next quarter with a mobile phone banking app and attaching
Mastercard debit card.
"We look forward to providing further updates over the coming
weeks."
Terms of Equity Investment and Exclusivity for Gold
Lionsgold and Railsbank entered into a binding heads of terms on
18 January 2018. Under the BHA Lionsgold was to invest GBP1.25
million for 128,640 new ordinary shares in Railsbank, representing
a 12.5% equity stake on a fully diluted basis on completion of
Railsbank's current funding round.
Lionsgold had an exclusive 30 day due diligence period and
having completed its due diligence, LION is completing the
subscription with payment being made over the next five business
days.
Due to oversubscriptions to enable additional strategic
investment in the round, Lionsgold has agreed to invest a total of
GBP1,270,996.68 for 130,800 ordinary shares in Railsbank to hold a
12.5% equity interest on a fully diluted basis upon the closing of
this pre-Series A funding round.
Upon deal completion, Cameron Parry, Lionsgold CEO, will be
appointed to the board of Railsbank as a Non-Executive
Director.
As part of its cornerstone investment, Lionsgold (or its
subsidiary nominee) has secured the exclusive rights to access
Railsbank's banking platform in relation to deposits, currencies,
tokens and products connected with physical gold or gold
derivatives, for a period of three years from date of subscription
completion.
Lionsgold shall be entitled to pre-emption rights in relation to
any new issue of shares by Railsbank. for such time as LION is
interested in 10% or more of Railsbank's shares. Railsbank reported
a loss before tax of GBP440,454 for the financial year ended 31
March 2017.
Concurrently with Lionsgold completing its investment, LION CEO
Cameron Parry, Global Strategy Consultant, Alan Davies and TRAC
Technology CEO, Ralph Hazell plan to co-invest GBP125,000,
GBP125,000 and GBP50,000 respectively in Railsbank, for equity
stakes of 1.23%, 1.23% and 0.49% respectively, on the same terms as
the Company.
About Railsbank
Railsbank is a banking and compliance platform which connects a
global network of partner banks with companies who want API
(Application Programmer Interface) access to global banking.
Railsbank simplifies on-boarding companies to its banking
partners, then gives access via the Railsbank API to banking
services such as creating digital ledgers, connecting digital
ledgers to real bank accounts, issuing IBANs for ledgers, receiving
money, sending money, converting money (FX), collecting money
(direct debit), issuing cards, and managing credit.
www.railsbank.com
About Goldbloc
Goldbloc is the culmination of ongoing work by Lionsgold and its
majority owned fintech subsidiary, The Real Asset Company ("TRAC")
evolving the original TRAC product offering available via
www.therealasset.co.uk. The Real Asset Company enables individuals
to buy gold and silver bullion securely and efficiently. The
user-friendly platform sits on top of global vaulting
infrastructure, providing an online account for buying gold and
silver and holding precious metals.
Goldbloc, provides the safety and tangibile value of gold to be
utilised with the certainty and convenience of everyday banking.
Goldbloc's unique proposition and competitive advantage is the
ability to provide a bank account and debit card linked to an
individual's physical gold.
Goldbloc is a breakthrough digital currencty that enables
physical gold (each Goldbloc being 1/1,000(th) of a gram of gold)
to be transferred and received via the global banking system.
www.goldbloc.com
Enquiries:
Lionsgold Limited Tel: +44 (0)20 3778 0578
Cameron Parry (Chief Executive Officer)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0)113 394 6600
Tim Feather/Ed Allsopp
Smaller Company Capital Limited (Joint Broker) Tel: +44 (0)20 3651 2911
Rupert Williams / Jeremy Woodgate
Beaufort Securities Limited (Joint Broker) Tel: +44 (0)20 7382 8300
Elliot Hance
Tavistock (Financial PR) Tel: +44 (0) 20 7920 3150
Edward Lee
About LIONSGOLD Limited (LON: LION)
Lionsgold is a London Stock Exchange AIM market quoted,
gold-focused company involved in the exploration, production and
retail application of physical gold, with gold assets in India and
Finland and a majority owned financial technology company
developing the digital gold currency, Goldbloc.
Lionsgold's three core focuses are:
-- Strategic partnership with leading India gold exploration and
mine development company, Geomysore, in which Lionsgold holds
21.15%;
-- Majority ownership of a financial technology platform
providing online accounts for people to hold and utilise physical
gold (www.goldbloc.com / www.indexgold.com /
www.therealasset.co.uk); and
-- Gold exploration and production in Central Eastern Finland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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