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TORONTO, ON / ACCESSWIRE / November 12, 2020 / GreenBank Capital Inc. (CSE:GBC)(OTCMKTS:GRNBF)(FRA:2TL) ("GreenBank" or ".the Company") is pleased to announce that its 19% owned portfolio company Staminier Limited ("Staminier"), a United Kingdom-based Merchant Banking firm, has purchased 400,000,000 Freeway Tokens as a first step in a planned collaboration with AuBit (www.aubit.io). AuBit is the pioneering asset management platform being created by AuBiT International to help to service the needs of institutional, professional and retail investors in the multi-trillion dollar global asset management industry.
Freeway Tokens are traded on crypto currency platforms Bithumb Global (www.bithumb.pro) and Uniswap (uniswap.org) and have a strictly limited maximum supply of only 10bn. Based on the midmarket price at 8 am GMT on 12 November 2020 reported on CoinGecko (https://www.coingecko.com/en/coins/freeway-token), Staminier's holding of Freeway Tokens had a market value of approximately US$3.2m.
AuBit intends to use disruptive financial technology to harness the power of network effects to generate increased returns for its user base by distributing up to 80% of traditional commissions and product costs (e.g. fees, margins, spreads and rebates paid to brokers and other intermediaries) as rewards to its user base instead. In this way, when an AuBit-networked product is traded, up to 80% of product-related transaction revenues are automatically redistributed back to every product holder. As an example, a user's holding in an AuBit-networked gold bullion product, would increase every time anyone, anywhere in the world, trades that AuBit-networked gold bullion product.
In traditional asset management, the gold volume in a holder's account would remain unchanged. With the AuBit network-enhanced model, an AuBit holder's gold would instead grow in volume over time as a result of ongoing redistributions of gold-trading revenues, bringing greater risk-adjusted total returns. This powerful network effect grows exponentially as more and more users join and trade on the platform. Network effects have been identified by some as a key factor in the stunning success of the so-called "tech unicorns" in the last 23 years and have been said to be responsible for 70% of the value in big tech today.
AuBit's management team and advisors have worked at some of the largest financial, legal and technology companies in the world including Goldman Sachs, HSBC, Fidelity, Credit Suisse, Morgan Stanley, IBM, Google, McGuireWoods and The Prudential.
Staminier's holding of Freeway Tokens is subject to certain lock-in provisions which mean that it cannot dispose of any part of its holding until April 2021 (when 60m tokens become saleable), with subsequent tranches becoming available for disposal on a quarterly basis and the final tranche of 50m tokens becomes freely saleable in January 2023.
As previously announced, GreenBank owns a 19% interest in Staminier, and has obtained GreenBank shareholder approval, solely at GreenBank Management's discretion, to exercise its existing Call Option ("Call Option") to acquire the remaining 81% of Staminier on or before February 14, 2021. GreenBank's ability to exercise the Call Option to acquire the remaining 81% of Staminier is strictly conditional on any and all necessary regulatory requirements having been fulfilled or otherwise accounted for.
Commenting on the transaction, David Lonsdale CEO of GreenBank said "As one of the first public companies to recognise the importance of blockchain technology in relation to financial transactions, GreenBank Capital is hugely excited about the prospects for Staminier's long term Freeway Token investment. The multi-trillion-dollar global asset management industry continues to grow each year, but has barely changed in decades and is ideally suited for AuBit's new technology that could change asset management forever by building a true bridge from the traditional world of capital markets to the new world of digital and decentralized finance and make mass global adoption a reality. We intend to help AuBit in that quest by pursuing with them projects to list special purpose vehicles on internationally-recognised stock exchanges as a way of allowing a wider audience of investors to gain exposure to AuBit's revolutionary products.Here at Greenbank, one of our declared objectives (and the objectives of the investment companies in our portfolio) is to invest in and work with companies that can scale globally and have a valuation potential of at least $1b. We believe AuBit fits those criteria very well indeed".
GreenBank is a merchant banking business listed on the Canadian Securities Exchange (trading symbols CSE: GBC and OTCMKTS: GRNBF and FRA: 2TL). GreenBank's 100% subsidiary GreenBank Financial Inc. is a merchant bank. GreenBank has a multi-sector, multi-stage investment thesis with a global remit. GreenBank's investment approach is to identify companies with the capacity for rapid growth with a strong management team, that can be scaled and prepared for a public listing over a period of 6-24 months. GreenBank's portfolio companies comprise equity investments in 11 small cap businesses, namely; 19% of Staminier Limited, a United Kingdom Merchant Banking firm; 59.5% of Kabaddi Games Inc, developers of a mobile application game based on the sport of Kabaddi; 52.5% of Blockchain Evolution Inc, owners of the world's first identification based blockchain, 22.3% of Ubique Minerals Limited, a zinc exploration company in Newfoundland, Canada; 47.5% of GBC Grand Exploration Inc, a gold exploration company in Newfoundland, Canada; 19% of Inside Bay Street Corporation, a financial news communications company; 34.8% of Gander Exploration Inc, a minerals exploration company; 10% of Reliable Stock Transfer Inc, a Canadian small cap transfer agency; 25.2% of Buchans Wileys Exploration Inc, a minerals exploration company; 10% of The Lonsdale Group LLC, a USA based private equity company focused on small cap investments; and 8.3% of Minfocus Exploration Corp (TSXV: MFX), a mineral exploration company.
Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business and trading in the common stock of GreenBank Capital Inc., the raising of additional capital and the future development of the businesses comprising GreenBank's investment portfolio. The forward-looking information is based on certain key expectations and assumptions made by the company's management. Although the company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because GreenBank can give no assurance that they will prove to be correct. These forward-looking statements are made as of the date of this press release and GreenBank disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: GreenBank Capital Inc.
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