TechFinancials Inc today posted a rather gloomy trading update which is hardly surprising given earlier announcements about the company considering feasibility of continuing its “remaining businesses”.
In line with the company’s announcement of May 4, 2020, TechFinancials’s brokerage services relating to B2B will terminate under its six month notice termination period. It is anticipated that all activities pertaining to this investment will be terminated by November 1, 2020.
TechFinancials has also decided to close its investment in Footies. TechFinancials signed a separation agreement, referred to in the May 2020 announcement, and under the separation agreement, the Company owns 100% of Footies intellectual property. Covid-19 has severely impacted the events market, TechFinancials explains, with the sales of tickets to events severely disrupted, and anticipated to be severely disrupted well into 2021.TechFinancials will halt the development and marketing of the Footies solution.
Finally, given the Group’s current financial status and the current atmosphere in the diamond and financial industries, TechFinancials does not believe it will be able to realise Cedex’s vision to issue the first Diamond ETF on its own. Therefore, the company has decided to halt this activity.
The company seeks to streamline its trading structure through the closure of all its subsidiary companies which is set to assist in driving running costs down. To further reduce running costs, all employment agreements will be terminated.
Eitan Yanuv will continue to act as the Company’s Non-Executive Chairman, and Asaf Lahav’s role will immediately change from being the Company Chief Executive Officer, to Executive Director.