Coinsilium Group Limited (NEX: COIN), the blockchain venture builder and investor that finances and manages the development of early-stage blockchain technology companies, has acquired a 30 per cent equity stake in StartupToken, a provider of accelerator and advisory services to technology start-ups and companies looking to undertake ICOs.
Under the terms of the Agreement, Coinsilium will:
- Acquire 300 shares representing 30% of the equity in StartupToken Limited, for a total consideration of £360,905.28 at a valuation circa £1.2m to be satisfied by way of a combination of shares and cash payments;
- Pay £276,694.05 to be satisfied through the issue of 3,255,224 Coinsilium shares at 8.5p, representing a 3% premium to the 28-day VWAP, and a further cash payment of £84,211.23;
- The shares are subject to a 12-month lock-in agreement (six months hard and six months soft); and
Coinsilium CEO Eddy Travia to be appointed to the board of StartupToken
Coinsilium has also agreed to provide StartupToken with a six-month convertible loan of US$100,000, with 5 per cent annual interest. If converted, this will equate to a further 6.40% equity at a valuation of circa £1.2 million.
The investment is aligned with Coinsilium’s strategy of leveraging its first-mover advantage in the blockchain technology sector to provide advisory services to companies targeting an ICO. As a result of the acquisition, the two companies are able to provide an expanded range of services to advisory clients including:
- Consulting, marketing & event services
- Token modelling, white paper drafting
- Acceleration services
- Roadshows, media, training
StartupToken Limited is a Gibraltar registered company operating a token sale advisory service and developing a global network of blockchain startup accelerators. It has been actively trading since May 2017 and has generated revenues from consultancy fees and the organization of token sale roadshows of US$226,000 with projected success fees from current clients of between $809,510 and $3,393,005 equiv.
“This important strategic investment strengthens Coinsilium’s foothold in the fast-growing digital token space,” Coinsilium chairman Malcolm Palle said.
“We have already established a good working relationship with StartupToken and have been greatly impressed by the speed at which they have been able to gain a strong presence in the industry. We look forward to working closely with Yacine and his team and using our combined experience to add value and fast-track the scale-up of the business.”
“As founder of StartupToken, I am extremely pleased to have received this vote of confidence from Coinsilium which I consider to be one of the most respected companies within the blockchain investment space,” StartupToken CEP Yacine Terai said. “‘Token sales’ are a new form of funding which is taking the blockchain world by storm and with the support of Coinsilium’s experienced team and its influence, StartupToken is now ideally positioned to become one of the leading accelerators within the global Token Economy.”