The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR")
20/02/2024
Valereum
Plc
("Valereum" or
"VLRM" or the "Company")
Valereum
Strategy Update and the Launch of "The Bridge"
Valereum Plc (AQSE: VLRM), the
Gibraltar technology group, is pleased to announce strategic
initiatives and developments for 2024 to 2025. The Company is
planning a full suite of innovative solutions that combine
proprietary technology with external partnerships to support the
lifecycle of tokenised digital assets for all asset classes,
marketplaces and market participants.
In accordance with the upcoming
shareholder meeting on the 22nd of February 2024, VLRM
will outline its key strategic milestones for the coming
medium-term cycle, including but not limited to:
Launch of 'The Bridge' -
Digital Financial Markets Infrastructure
A blockchain-based digital financial
markets infrastructure ("DFMI") is currently 95% complete
and targeted to be completed during 2024
(V1 Phase 1). VLRM, through its recent acquisition of GSX Group, is
partnering with technology vendors, and has designed and developed
'The Bridge' (previously called GATENet Technology) over a number
of years to deliver a full stack solution that supports the
issuance, trading and settlement of digital securities and digital
assets. This bridges the gap between the innovation in financial
technology deploying blockchain, and the legacy structures of the
capital markets - hence its name.
'The Bridge' is planned to be
available as a white label solution, including but not limited
to:
●
Exchanges
●
Marketplace operators
●
Financial institutions (brokers; investment banks
& asset managers)
●
CSDs (digital registry and settlement
systems)
After the launch of Phase 1 of 'The
Bridge' DFMI V1 platform, further development is expected to
continue with Phases 2 to 4, developing on-chain Centralised
Securities Depository (CSD) functionality enabling the 'T Instant'
settlement of digital securities at the point of trade.
Launch of VLRM
Markets
Using VLRM's 'The Bridge'
technology, VLRM Markets will seek to open and operate marketplaces
in both public markets and real world assets to maximise the
tokenisation opportunity:
●
Exchanges
(Public): VLRM Markets will seek to
open and operate a regulated tokenised securities exchange and CSD
to support the issuance and trading of tokenised securities and
digital assets (subject to regulatory approval and in a territory
yet to be determined).
●
Real World Asset
(RWA) Marketplaces: VLRM Markets
will seek to establish and operate RWA marketplaces utilising
readily available technology. This will be supplied by technology
vendors of VLRM Technology to enable the primary issuance and
bulletin-board-based secondary trading of such assets as; Private
Company security tokens; Investment funds; Gold; Art; Luxury goods
& Royalties; Forestry and Carbon Credits (subject to regulatory
permissions where applicable).
●
VLRM
Wallet: VLRM Markets will seek to
launch the 'V Wallet,' a mobile device app providing a unique
portal for VLRM's customers to access VLRM's products and services,
including but not limited to; direct access to VLRM marketplaces;
access to the staking and voting utility of VLRM's own utility
token GATE; e-money vendor connection for fiat-enabling and
card-based payments.
Launch of VLRM
Capital
VLRM will launch VLRM Capital, an
investment vehicle managing both VLRM's own funds and third party
capital, which will include;
●
Principal
Trading (long/short): Highly liquid securities (equities)
and Cryptocurrencies.
●
Yield
Generation: Yield farming,
generating yields within the expansive DeFi landscape
globally, offering the potential to earn above average yields by
staking digital assets within specialised DeFi and CEFI protocols.
This also includes Node Operation, generating returns by running
nodes on third party blockchains.
VLRM Capital is targeting to launch
its first fund during Q2 2024 and is pleased to announce Valereum
Chairman, James Formolli will provide initial seed capital of
£500,000 (non-Valereum capital, to be
invested in the fund).
The Company will initially look to
benefit from exemptions available for Private Funds which are
subject to a limit in the number of investors and it will look to
graduate it into a regulated fund as it grows.
Rule 4.6 Statement - Related Party
Transaction
The Directors (other than James
Formolli) confirm that, having exercised reasonable care, skill and
diligence, the related party transaction is fair and reasonable as
far as the shareholders of the issuer are concerned.
Development of GATE
Token into the VLRM ecosystem
As part of VLRM's acquisition of GSX Group, the
utility token of GATENet's DFMI platform, the GATE Token, has been
absorbed into the VLRM ecosystem. This presents a unique
opportunity to maximise the utility of GATE Token, whilst seeking
to align the interests of both shareholders and token holders,
including but not limited to:
●
Discounted trading fees on VLRM marketplaces
through paying fees in GATE Tokens;
●
GATE Token rewards through staking GATE Tokens on
the GATE Token staking site https://staking.gatenet.io/).
Rewards are paid by GATENet which allocates a
split of the transaction fees it collects through the licensing of
the GATENet technology (e.g., 40%) as rewards to GATE Token
stakers;
●
GATE Token deflation through token burning by
GATENet, which allocates a split of the transaction fees it
collects through the licensing of the GATENet technology (e.g.,
40%) to buy and burn GATE Token (resulting in a reduced
supply)
●
GATE Token stakers being able to vote on motions
proposed by Valereum to GATE Token holders (e.g., the split of
rewards vs burning ratio)
●
VLRM Capital will allocate some of the gains it
makes on its activities to buy and hold GATE Token as a long term
strategy (on the VLRM balance sheet) and buy and burn GATE Token,
further reducing supply.
VLRM will
also further explore the legal and operational feasibility of the
'investomer' concept - whereby an
individual or legal entity patronises the company in which they are
also a shareholder. An example of the
'investomer' concept is a customer reward
program being paid in utility tokens (instead of points) and those
tokens being redeemable at any time into the shares of the company,
should the customer choose to do so. Taking this concept further,
subject to the relevant approvals, whitelisted customers of
Valereum could utilise their 'V Wallet' to redeem their GATE Tokens
into Valereum shares - a customer becomes an investor.
Although merely an example of the company's aspiration, it opens up
a myriad of possibilities where customers can gain the advantage of
the duality of being both a shareholder and a customer facilitated
by GATE Token and the V Wallet.
The details
of the GATE Token are, as of 19 February 2024, as
follows:
●
Total Supply | 899,999,999 GATE
●
Circulating Supply | 304,700,541 GATE
●
Total Staked | 448,856,870 GATE
●
Reserve | 146,442,588 GATE
A key element to integrating GATE
Token into the VLRM ecosystem is aligning the interests of
VLRM management. As part
of the terms of acquiring the GSX Group, there will be the
following transfers from the GATE Token reserve:
●
18,000,000 will be awarded to the GSX shareholders
that loaned capital to the GSX Group,
in exchange for the waiver of loans provided to the GSX
Group;
●
65,000,000 from the GATE Token reserve to the VLRM
management (allocations subject to Remuneration Committee's
approval).
Valereum will assume responsibility
for the ongoing management of the reserve which has historically
been managed by the GSX Group. It will also seek to deepen the
liquidity in GATE Token by increasing the liquidity pool on
Uniswap; expanding GATE's DeFi market presence and when
appropriate, admitting GATE Token onto a centralised
exchange.
Rule 4.6 Statement - Related Party
Transaction
In relation to the allocation of
65,000,000 from GATE Token reserve to the management team of
Valereum, the non-executive directors confirm that, having
exercised reasonable care, skill and diligence, the related party
transaction is fair and reasonable as far as the shareholders of
the issuer are concerned.
Capital
Raise
Valereum will be seeking additional
capital in order to execute its strategy and vision and is pleased
to announce that it is arranging funding as follows:
●
The Company will be seeking investment of up to £4,000,000 and has
commenced engagement with brokers and investors, with a targeted
completion during Q3 2024. We are also pleased to announce that the
Company has received a firm commitment towards initial funding of
£2,500,000 funding at £0.06 per share from Valereum's Chairman,
James Formolli.
This will consist of 41,666,666
million ordinary shares being issued at £0.06 and 41,666,666
million warrants issued at £0.001 with a lock in period of 12
months.
Rule 4.6 Statement - Related Party
Transaction
In relation to James Formolli's
investment commitment, the directors (other than James Formolli)
confirm that, having exercised reasonable care, skill and
diligence, the related party transaction is fair and reasonable as
far as the shareholders of the issuer are concerned.
Nick Cowan added:
"We have an ambitious vision, which we believe is justified by
the size of the opportunity. The world of tokenisation is rapidly
evolving, both in the development of our technology and in
operating marketplaces in public markets and real world assets. In
short order, Valereum has established the new team, a comprehensive
strategy and implemented a strong governance framework to operate a
robust, transparent control environment, whilst building confidence
with investors".
James Formolli added:
"I
am fully onboard and committed to financially supporting Valereum
and have strong belief in my team and our technology. Our
collective vision and desire is to unlock capital and create value
in tokenised digital markets as a leading provider of technology
solutions, and as an exchange and marketplace
operator."
VLRM will outline further detail on
its objectives, along with the wider VLRM vision,
timelines,
strategy and investment at the
online shareholder meeting on the 22nd of February 2024
between the times of 1pm-3pm UK time -
link and registration details
below:
When: Feb 22, 2024 01:00 PM Greenwich
Mean Time
Topic: VLRM Shareholder
Meeting
Register in advance for this
webinar:
https://us06web.zoom.us/webinar/register/WN_GE1q7QwQRVqSZRFgr4VVIQ
After registering, you will receive a
confirmation email containing information about joining the
webinar.
The Directors of the Company accept
responsibility for the contents of this announcement.
For more information, please visit
the Company's website at Valereum.gi
Enquiries:
Valereum Plc
James Formolli,
Chairman
Tel: +971 4584
6284
AQSE Corporate
Adviser
First Sentinel Corporate
Finance
Brian
Stockbridge
Tel: +44 20 3855
5551