Hamilton, Bermuda, Aug. 07, 2019 (GLOBE NEWSWIRE) -- ANNOUNCED TODAY BY THE BOARD OF DIRECTORS OF ARBITRADE LTD. (“Arbitrade”).
Arbitrade Ltd. confirms that in connection with the purchase of Cryptobontix (“Cryptobontix”) by SION Trading FZE (“SION”) from Troy Hogg, Arbitrade have also terminated their gold trading agreements with SION and divested themselves of all interests in the gold, which was provided to them by SION under such agreements, so that the gold can be instead utilised by SION to back Cryptobontix’s digital asset tokens, the best known of which is Dignity.
Cryptobontix, an Ontario registered company, originally issued a family of digital asset tokens which were designed to be backed by precious metals - called Dignity, Namaste, Orectic and Honor (the “Ingot Tokens”). It was intended that once Arbitrade had been set up in Bermuda Cryptobontix, which was in majority common ownership with Arbitrade, would be brought into the Arbitrade group and as part of this the Ingot Tokens would also transfer. In preparation for this Arbitrade contracted with SION to provide gold in order to back the Ingot Tokens.
Arbitrade’s agreement to acquire Cryptobontix was conditional with the major condition being adequate proceeds from an Initial Coin Offering (“ICO”). Following a number of regulatory challenges and approval delays, generally being faced in the Fintech Market in Bermuda, along with market conditions affecting the ICO market, the proposed ICO was not undertaken, the acquisition of Cryptobontix did not proceed and consequently the Ingot Tokens remained squarely with Cryptobontix. As a result, Arbitrade has never owned Cryptobontix nor assumed any liabilities for the Ingot Tokens: Dignity (DIG), Namaste (NAM), Honor (HNR) and Orectic (ORE) which were issued by Cryptobontix.
With Arbitrade having no requirement for gold in relation to any exchange, mining or other business activities that it might undertake, negotiations for SION to move all contractual obligations in relation to the gold to Cryptobontix were aligned when SION identified a business opportunity in the Ingot Tokens and indicated their desire to acquire the shares in Cryptobontix. As a result, Arbitrade’s business and contractual relationships with SION have now been assumed by Cryptobontix.
The SION acquisition of Cryptobontix is positive news, in particular for the Dignity holders, with announcements already starting to be made by SION in relation to the level of gold backing and redemption opportunities with other announcements scheduled to be made by SION soon.
Trott & Duncan provided legal advice on the transaction.
Trott & Duncan Limited
Trott & Duncan Building 17A Brunswick St., Hamilton HM10, Bermuda
Tel: (441) 295-7444 Fax: (441) 295-6600
Submitted to wire services through Agency of Record:
Creative Management Partners LLC
433 North Camden Dr. 6th Floor
Beverly Hills, Ca. 90210
Telephone for Inquiries: (786) 460-2642