TORONTO, ONTARIO–(Marketwired – May 23, 2017) – Goldmoney Inc. (TSX:XAU) (“Goldmoney”), a precious metal financial service and technology company, today announced an investment in and partnership with Isle of Man-based investment company LBT Holdings Ltd. (“LBTH”), parent company of Lend & Borrow Trust Company Ltd. (“LBT”), a U.K.-based online platform offering auction-rate peer-to-peer lending and borrowing collateralized by precious metals.
Unique to the U.K.’s fast-growing fintech industry, LBT is the first regulated peer-to-peer offering of its kind. Lenders are fully secured by borrowers’ investment-grade bullion, pledged as security, while borrowers can monetize and borrow against their own precious metal holdings.
The private investment gives Goldmoney the right to nominate a board member and the right to provide precious metal dealing and storage solutions to LBT clients. Goldmoney may also elect to implement facilities with LBT whereby eligible clients with a Goldmoney Holding – U.K. residents and businesses initially, with other countries added over time – can access LBT auction rates and earn interest income from loans fully secured by precious metal collateral.
LBT is authorized and regulated by the U.K.’s Financial Conduct Authority to operate an electronic system in relation to lending. The investment in LBTH includes common shareholders, including Eric Sprott as well as Lead Director and LBT Chairman James Turk.
“Goldmoney was founded on a mission to provide clients with unparalleled access to precious metals ownership with minimized counterparty risk. LBT has a similar goal of providing clients with an alternative for their national currency savings,” said Roy Sebag, CEO of Goldmoney. “LBT allows anyone to make a fiat currency deposit and earn a rate of interest backed by precious metal held as collateral, rather than a bank deposit that can be repeatedly fractionalized. LBT currency deposits have no banking counterparty risk, a revolutionary idea and one I believe many clients seek in the prevailing artificially-low interest rate environment known as return-free risk. We are delighted to invest in this early stage – and potentially revolutionary – peer-to-peer lending model and provide our precious metal infrastructure to LBT clients.”
“After three years of development, we are pleased to announce the regulatory approval and launch of LBT, and thrilled to have Goldmoney, which has always been a leader in innovating gold with technology, as an investor and partner in this venture,” said James Turk. “We have built an online platform that enables lenders to reduce counterparty risk through fully-collateralized lending and earn interest income determined via live auctions. Borrowers can monetize their precious metal holdings in their choice of five national currencies with LBT’s innovative non-bank lending and borrowing offering. With the forthcoming integration of LBT services, the Goldmoney Holding will be an ideal savings alternative for individual clients, small-to-medium enterprises, institutions, and international businesses – including gold mining companies.”
To learn more about Lend & Borrow Trust Company Ltd., visit lendborrowtrust.com.
About Goldmoney Inc.
Goldmoney Inc., a financial service company traded on the Toronto Stock Exchange (TSX:XAU), is a global leader in precious metal investment services and the world’s largest precious metals payment network. Safeguarding $1.9 billion in assets for clients located in more than 150 countries, Goldmoney is focused on a singular mission to democratize access to gold through innovative technology. Powered by Goldmoney’s patented technology, the Goldmoney Holding® is an online account that enables clients to invest, earn, or spend gold, silver, platinum, and palladium that is securely stored in insured vaults in seven countries. All bullion assets are fully allocated and physically redeemable property. Goldmoney is regulated by the Jersey Financial Services Commission (JFSC) as a Money Services Business, and registers with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Financial Crimes Enforcement Network (FinCEN) in the U.S. For more information about Goldmoney, visit goldmoney.com.
This news release contains or refers to certain forward-looking information. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “may”, “potential” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All information other than information regarding historical fact, which addresses activities, events or developments that the Goldmoney Inc. (the “Company”) believes, expects or anticipates will or may occur in the future, is forward-looking information. Forward-looking information does not constitute historical fact but reflects the current expectations the Company regarding future results or events based on information that is currently available. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Such forward-looking information in this release speak only as of the date hereof.
Forward-looking information in this release includes, but is not limited to, statements with respect to: service times for transactions on the Goldmoney network; growth of the Company’s business, expected results of operations, and the market for the Company’s products and services and competitive conditions. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the Company’s limited operating history; history of operating losses; future capital needs and uncertainty of additional financing; fluctuations in the market price of the Company’s common shares; the effect of government regulation and compliance on the Company and the industry; legal and regulatory change and uncertainty; jurisdictional factors associated with international operations; foreign restrictions on the Company’s operations; product development and rapid technological change; dependence on technical infrastructure; protection of intellectual property; use and storage of personal information and compliance with privacy laws; network security risks; risk of system failure or inadequacy; the Company’s ability to manage rapid growth; competition; effectiveness of the Company’s risk management and internal controls; use of the Company’s services for improper or illegal purposes; uninsured and underinsured losses; theft & risk of physical harm to personnel; precious metal trading risks; and volatility of precious metals prices & public interest in precious metals investment; and those risks set out in the Company’s most recently filed annual information form, available on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except as required by law.