TechFinancials (LON:TECH), a UK-listed trading technology provider, today announced it has extended the deadline for completing the sale of its full stake in MarketFinancials Limited by over a month to September 30.
The AIM-traded firm revealed in January it had agreed to sell its holdings in subsidiary MarketFinancials to a Cyprus-based company called Proverial for €100,000 ($110,000).
At the time, TechFinancials flagged that it intended to sell the business because its operations are no longer core to its future business strategy following the decision to step away from B2C operations in Europe. The deal completion, however, was conditional on the consent of the Seychelles regulators, which was expected to be received no later than 30 June.
But today, the company extended the deadline though it didn’t reveal why the entire deal was being deferred to next month or if it has taken a fresh mandate from shareholders.
MarketFinancials is regulated by the Seychelles Financial Services Authority (SFSA). Since January 2015 and until February 2018, MarketFinancials operated as a liquidity provider, providing binary options and forex market maker services as well as risk management to the group.
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The company was also part of TechFinancials’ plans to sell its Cyprus-based business, B.O. Tradefinancials (BOT), as the company moved away from the binary options industry, ceased its operation and returned its license to CySEC.
At the time, the financial cost of the deal was reported at $400,000.
Survival attempts have all been for naught
The move came a few weeks after the CySEC refused to approve the sale of its OptionFair brand to another Cyprus based company called S Win Holdings Ltd, which is held by a group of private investors.
TechFinancials has been retooling over the last two years, parting ways with key executives, restructuring the company, and reassigning and laying off workers, but it seems to have all been for naught.
The firm has been also downsizing in Asia and Israel as part of its restructuring process. It also moved some positions to Ukraine where employment costs are lower. Additionally, all board and senior management team members took a 20% salary reduction.
Despite woes, TechFinancials managed to mitigate its losses in the first half of 2019 to $1.07 million from $1.11 million a year earlier. The company’s revenues, however, fell to $2.07 million from $3.78 million in 2018.