RFN taps into Californian blockchain platform
Published 19-DEC-2017 12:21 P.M.
|
4 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Sydney-based Software as a Service (SaaS) solutions provider, Reffind Ltd. (ASX:RFN), this morning announced that it has initiated steps to purchase a circa 15 per cent stake in Loyyal, a technology company that has developed a leading loyalty platform within the blockchain space. The deal will see RFN become the largest single shareholder in Loyyal and exercise its right to nominate a Board member to represent RFN on Loyyal’s board.
RFN’s investment in Loyyal is comprised of up to US$2.3 million split into two tranches. The first tranche will consist of a subscription for US$800,000 in 2-year convertible promissory notes, convertible at RFN’s discretion at an enterprise value of US$16.5 million.
From the perspective of functionality, the deal will mean RFN has exclusive access to Loyyal’s technology including its proprietary loyalty platform. RFN intends to leverage Loyyal’s market position and digital market access to over 4.5 billion people, to improve its commercial position and generate revenue in the Asia/Pacific region.
Loyyal’s blockchain-focused platform carries functionality which RFN can potentially leverage in the wider market, alongside the broad-based growth seen in blockchain acceptance and utilisation — especially by small and large businesses seeking to secure and scale their operations efficiently.
Source: Loyyal
It should be noted, however, that this is an early stage tech company and success is no guarantee. Investors should seek professional financial advice before making an investment.
Another key service made possible by Loyyal’s platform, and something RFN plans to implement as a matter of priority, is ‘white-label’ functionality. The platform can be white labelled or offered directly to large enterprises and loyalty program operators, purely as a technology licensing service. As validation of its activities, Loyyal has quickly attained market share and attracted several ‘Fortune 500’ companies as clientele including the likes of Deloitte and Dubai Points.
Understandably, RFN remains tight-lipped about its other client-service deals, although it does admit that a ‘large global airline’ and a ‘large US financial services company’ have been confirmed as clients with details kept under wraps for confidentiality reasons.
In parallel to its flurry of collaborative deals in the blockchain space, RFN is also attempting to bolster its own ranks internally, by recruiting several prominent names from Fintech sector with extensive expertise in blockchain and e-commerce.
Earlier this month, RFN appointed Tim Lea, a blockchain expert as its new CEO who is expected to lead RFN’s newly-found market direction. Additionally, RFN has recruited strategic global blockchain industry advisor Matthew Hamilton and local Aussie blockchain authority David Jackson, to its board.
Anthony Dunlop, RFN Board member said, “We see this as a crucial milestone in our strategic growth plan, which is targeted towards being quickly recognized as the global leader in enterprise rewards, recognition, and loyalty solutions. We have a specific focus on scalable growth and market penetration in the corporate and government agency markets across the fast-growing Asia Pacific region. The significant upside we expect the blockchain technology to provide sees this investment as an ideal means to drive further growth in line with our corporate strategy.”
Matt Hamilton, Director of Strategic Partnerships at Loyyal, said: “We are delighted to have such a quality strategic investor and product partner as RFN. The depth of their knowledge and experience gives us complete confidence in their ability to expand our market penetration and the Loyyal brand. This will particularly be the case in the fast-growth Asia Pacific region where technology is a key factor driving increased global and regional trade.”
RFN and Loyyal’s proposed transaction is expected to be formally completed by 15 January 2018, following a brief due-diligence period.
In other news today, RFN has received a $1 million investment from Chapmans Limited (ASX:CHP).
The investment consisted of a $1 million participation in Reffind’s recent placement at an average price of 2.43 cents per share. Combined with the its existing shares held in RFN, CHP is now the largest shareholder. Chapmans’ 48,129,521 shares from a total of 515,500,000 shares issued represent a 9.33% holding.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
