By admin 0 comment
STOCKHOLM IT VENTURES ANNOUNCES TOKENIZATION DEAL AND €200 MILLION CAPITAL INCREASE WITH NETOIL INC.
STOCKHOLM, SWEDEN (October 24th, 2018) – Stockholm IT Ventures AB (Frankfurt Stock Exchange: SVAB – ISIN SE 0006027546) today announced it has agreed to terms with international giant Netoil Inc. on a capital injection of €200 million along with a tokenization deal for its oil delivery network starting in the middle east.
“Needless to say, this is a very exciting day for Stockholm IT Ventures AB” said Anthony Norman – CEO of Stockholm IT Ventures AB. “This is something we have been working towards for a very long time and the hard work has finally come to fruition. We are happy to be driving the technology behind the first oil tokenization project of its kind and to apply the benefits of the blockchain technology in order to disrupt a traditional business such as oil.”
Through the terms of the deal, Stockholm IT Ventures AB will be tokenizing a corporate bond with a face value of €300 million, secured by its existing oil and gas production business. The tokenized bond is made to effectively create a settlement layer for payment between various countries in the middle east where Netoil operates. This will allow companies in various countries to be able to settle payment and delivery issues in minutes as opposed to days, while at the same time creating a common token that will represent the oil for trade and settlement.
Stockholm IT Ventures AB has developed a method to create hybrid bonds in where the bond may be listed on a traditional exchange, but also be tradable as a token. The Company will as part of its BytemineX launch also introduce a simplified bonds trading facility, in where it will offer its members the possibility to trade the bonds just as any exchange listed token.
“We’ve been looking at blockchain technology to solve some of the business challenges we face at Netoil Inc. since I’ve joined the board of Stockholm IT Ventures” said Roger Tamraz – Chairman of Stockholm IT Ventures AB and Founder of Netoil Inc. “We feel this is a great first step towards disrupting the oil business and bringing the kind of positive change that is much needed in this marketplace. We are happy to cooperate with Stockholm IT Ventures AB in this project and view it as the first step of many to digitize the Netoil Inc. business and bring the company to the blockchain technology era.”
Stockholm IT Ventures AB will receive a fee of 0.2% (€600,000) for the successful issuance of the bond.
In addition to the tokenization deal, Stockholm IT Ventures AB will also receive a capital injection of €200 million from Netoil Inc. by subscription of new shares at a share price of €0.2899/share. The capital injection is provided in order to create sufficient strength to execute a series of acquisitions and expansions in the operations of Stockholm IT Ventures AB. Stockholm IT Ventures AB will also use part of the bond to offset shares issued in 2018 as part of debt settlement as the Company has been settling commitments stemming from its former business, hence dramatically increase the asset value per share and consolidating the Company’s capital structure. Fully diluted post all planned transactions, the company is expected to have issued 1,718,000,000 shares with an asset value of €0.123 per share. Stockholm IT Ventures AB initiated the process for the admission of additional shares to the trading at the Frankfurt Stock Exchange (Regulated Market).
Tokenization of assets has been a hot topic in business recently because of its ability to significantly reduce and nearly eliminate administrative costs via smart contracts, increase transparency and liquidity (and therefore asset values), as well as open markets for new investment via the roughly 1.7 billion unbanked adults worldwide. The technology of tokenization is seen amongst industry experts as one of the “killer apps” of the blockchain as a whole with an expected €1 Trillion of assets to be tokenized in the next 12-18 months.
About Stockholm IT Ventures AB
Stockholm IT Ventures AB is a Swedish public company listed on the Frankfurt Stock Exchange since 2014 under the ticker symbol SVAB. The Company specialises in clean and efficient low-cost energy cryptocurrency mining, production and related FinTech and Blockchain technologies. For more information visit www.stockholmit.co. You can also find the Company on Facebook, Twitter and LinkedIn. Details on the Company’s Bytemine (BYTM) token and White Paper can be found at www.bytemine.io.
Stockholm IT Ventures AB, Anthony Norman, firstname.lastname@example.org