- Chapmans has made its first strategic investment in blockchain technology
- Blockchain is the technology that underpins cryptocurrencies such as Bitcoin
- The investment comes through a $1 million participation in Reffind's (ASX:RFN) recent placement
- Chapmans is now Reffind's largest shareholder, with a total holding of 9.33% of shares issued
- Reffind has agreed to invest in Loyyal Corporation, a blockchain-based global leader in loyalty and rewards with exclusive performance based territorial licensing rights to its blockchain platform
- Chapmans is currently reviewing a number of direct investments in additional compelling global blockchain companies
The investment consisted of a $1 million participation in Reffind's recent placement at an average price of $0.0243 per share. Combined with the Company's existing shares held in Reffind, Chapmans is now the largest shareholder. Chapmans' 48,129,521 shares from a total of 515,500,000 shares issued represent a 9.33% holding.
The strategic investment in Reffind is Chapmans' first investment in blockchain technology. It was made following the Company's internal assessment of the substantial potential in the emergence of blockchain across numerous global enterprise use cases and markets. Chapmans is currently reviewing a number of direct investments in additional compelling global blockchain companies in line with it's high conviction investment approach to the blockchain industry.
Blockchain is a digitized, decentralised ledger of all cryptocurrency transactions. Some of blockchain's core intrinsic properties are its ability for trusted and immutable exchanges of data such as customer data or units of value such as cryptocurrencies, which are transparent to all parties with public or privately certified access. It is the technology that underpins cryptocurrencies such as Bitcoin, Litecoin and Ethereum which have all surged in value in recent months. The price of Bitcoin has risen approximately 1,600% in the last year and this month Bitcoin futures began trading on Wall Street.
Chapmans' blockchain investment strategy includes but is not limited to investing in proven and compelling large-scale corporate and government adoption and take up of blockchain technology companies with experienced boards and executive teams and post-revenue status with low entry point pricing, well protected intellectual property and significant capital growth upside.
Chapmans participated in Reffind's placement on December 7 following which Reffind issued 82.5 million ordinary shares to sophisticated investors using its existing capacity under section 7.1 and 7.1A of the Corporations Act (Commonwealth 2001).
Reffind's exposure to blockchain comes through a strategic investment it has agreed to make in Loyyal Corporation ("Loyyal"), a blockchain-based global leader in the loyalty and rewards industry. The investment will provide Reffind with exclusive rights to Loyyal's technology platform and product offering in agreed countries across the Asia Pacific region with certain performance based terms. The investment positions Reffind for significant growth through a technology-led expansion to its existing rewards and recognition platform WooBoard.
With Deloitte and number of other Fortune 500 customer use cases already contracted and using Loyyal's platform, the Loyyal investment and product offering contains the key strategic investment attributes of Chapmans' blockchain investment strategy outlined above.
Chapmans' Executive Chairman Peter Dykes: "We are very pleased to have made our first investment in blockchain and become Reffind's largest shareholder following their recent placement. The strategic investment in Reffind meets all our criteria and gives us exposure to the exciting and rapidly growing blockchain sector."
Reffind's Non-Executive Chairman David Jackson: "Reffind is a software company focused on growth and we welcome this investment from Chapmans. We are also delighted with our recent investment in blockchain and look forward to further developing our product offering with this cutting-edge technology."
About Reffind Limited
Reffind Limited is a Software as a Service (SaaS) solutions provider with a product focus on enterprise to employee solutions including rewards, loyalty and recognition, employee communication and engagement. Based in Sydney, Australia the Company is listed on the Australian Securities Exchange (ASX:RFN). The Company has built its growth to date through both organic growth and acquisition.
About Chapmans Limited
Chapmans Limited (ASX:CHP) is an ASX listed diversified investment company engaged in special situation investments across a diverse range of industries, with a focus and expertise in the mobile and advanced industrial technology sectors. It seeks to be an active strategic investor in high growth areas of the market, and to identify and work with emerging high growth companies.
The Company's investment philosophy and approach are based on a unique mix of high conviction and special situation features, characterised by advisory and equity investments structured around specific events and assets for both public and large private corporates.