The binary options platform provider TechFinancials continues its expansion in the Asia Pacific region by setting up another joint venture with a Hong Kong-based company.
According to the announcement TechFinancials filed with the London Stock Exchange, it is establishing a joint venture with the Hong Kong registered IBID Holdings Limited, which specializes in online marketing systems and high growth online oriented companies.
This would be its second significant undertaking in the region, after in January TechFinancials announced the completion of a joint venture with the Hong Kong-based Optifortune Trade.
TechFinancials will hold 51% of the new business. It will integrate its branded trading system into IBID Holding’s online marketing systems and will transfer to the joint venture all intangible assets, related to the brand. The integration period is three months, but no later than May 1, 2016.
On its part, IBID Holding would have 49% in the joint venture and will make an initial investment of $300 000. It will also make the equity investments necessary for the satisfaction of the joint venture’s working capital until the profit milestone of a $100 000 profit for three consecutive months is reached. The deadline for reaching the milestone is July 31, 2017.
If the profit milestone is not reached within this period, the parties agree to negotiate in good faith new terms on their cooperation, taking into consideration the actual performance of the joint venture.
According to the agreement, all additional investments made by IBID Holding would be considered a premium and TechFinancials will retain its 51% share in the joint venture.
“The Company is very pleased to be forming this Joint Venture with IBID”, said Asaf Lahav, Group CEO of TechFinancials, quoted in the press release. “The Board believes the joint venture will prove highly beneficial to the Group, providing sales and marketing expertise and additional working capital to grow the brand. In addition, we believe that the combination of mutual strengths of the Company and the Partner will substantially strengthen operating performance. The collaboration continues our stated strategy at IPO which is to further expand our business through partnership with key players in the online B2C space. The Board believes the joint venture will improve the long-term sustainability and consistency of our growth prospects while generating extra cash flow.”
TechFinancials is in the top of the leading providers of platforms for binary options, along with SpotOption, Tradologic, MarketPulse and TradeSmarter.
TechFinancials was established in 2009 with the goal to create a simple solution for online brokers who want to provide to their retail customers a platform for binary options trading. The company software has a proprietary pricing engine for binary options and exotic options. In 2014 around 18% of all deposits for binary options trade were processed through TechFinancials’ software. Since 2014 the company began to focus on the Asian markets.
Among the brokers, running the TechFinancials’ software are OptionsClick, Binary International, 24option.com, Optionfair Partners, Planet Option, Optionsxo, Vantage FX, Exbino, 33option.com, YesOption, etc.