Ratings CEDEX

Great team. Best of luck guys!

This one seems like it could be a little though. I like the concept but not directly clear to me how it will be executed.

Not sure I really understand the structure and value here. When I see that the founder has sold an option for 90% of the equity for 40,000, I struggle to see the correllation to the hard cap. If the founder values the company in equity terms at around 45,000 its doesnt suggest a significant cashflow or profit being generated by CEDEX. It is therefore key to me to get a better understanding of the business model. If 10m of the sale at hard cap is being used for dev and going to Tech Financial then buying AIM shares maybe the better investment compared to tokens
The interrelatioship between CEDEX. Tech Financial and key stakehodlers needs to be understood here to be able to properly validate the opportunity. Its interesting that the share price of Tech Financials has gone up 300% or so in last four months. I dont understand some of the recent activty wher 40k was paid for a option to acquire 90% equity and then a couple of months later 200k paid for 2%. Maybe that helps get a new MTM valuation of the option in the AIM company accounts. Just appears without more clarity that maybe the focus is more on the AIM company than the token holders



TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today announces it has entered into legally binding heads of terms (the "Heads of Terms") with Saar Levi in respect of a to be incorporated group of companies which will operate under the name CEDEX.com ("CEDEX"). CEDEX will operate what the Company believes will be the first Blockchain based online exchange for diamonds with a long-term vision to turn the traditional diamond industry into a financial tradable asset.

Under the Heads of Terms, TechFinancials will make unsecured loan funding of US$400,000 available to the CEDEX group to develop its technology. The loan bears no interest. TechFinancials can seek repayment of the loan once CEDEX has sufficient funds and the loan therefore has no set maturity date.

In consideration for providing this initial funding, upon incorporation of the CEDEX holding company ("CEDEX HoldCo"), CEDEX HoldCo will grant the Company an option to acquire 90 per cent of CEDEX HoldCo at an exercise price of US$40,000, which may be offset against any amount outstanding under the loan. Exercise of the option is at the sole discretion of TechFinancials and the option can be transferred, sold or disposed of as TechFinancials sees fit. The option period is for three years from the date of grant.

It is envisaged that CEDEX will also utilise the Company's knowledge and expertise. In addition, the Company may provide technical development services on a fee-for-service basis to CEDEX to assist with the development of the trading platform.

The collaboration with CEDEX is a strategic development aligned with the Company's long-term vision of utilizing its expertise and considerable experience in the development of online financial trading solutions and technology systems to further expand into new product areas. It is anticipated that CEDEX will provide a novel way to invest in diamonds, aligned with the Company's vision of simplifying trading instruments.


Under the SPA, TechFinancials will make an equity investment of US$200,000 at a post-money valuation of US$10,000,000, representing 2 per cent of CEDEX’s current capital on a fully diluted basis, taking into account the exercise of the option mentioned below.

December announcement

As at the date of this announcement, TechFinancials holds an option to acquire a further 90 per cent of CEDEX at an exercise price of US$40,000 with an expiry date of three years from the date of grant (i.e. 22 October 2017), giving it a potential maximum holding of 92%.

Also a concren on compliance risk awareness of the team

B.O.TradeFinancials fined by CySEC

TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, announces that its subsidiary, B.O.TradeFinancials, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) has been fined by the Commission for the amount of 138,000 Euros. The fine was disclosed as a contingent liability in the preliminary results for the year ended 31 December 2015, announced on 26 May 2016, and relates to certain regulatory breaches. The Company has implemented measures to ensure these breaches do not recur and expect to have fully implemented any necessary corrective actions by 5 September 2016, as required by CySEC.

The Company does not anticipate that the fine will have a material impact on the results for the current financial year and still expects to meet market expectations


Downgraded team as no response from team or advisors to queries or explanations

If the cost of delivery of a diamond to the depository and the cost of its storage there will be substantially less than the cost of the diamond, I am sure that it will work fine. Especially if you allow users to use you as a pawnshop.

No product prototype or alpha/beta release yet. Doesn't seem to be a commodity type of tradeable asset based on four C's (Carat Weight, Cut, Color, Clarity) and grade of diamonds.

Evaluation has been updated based on the team passing KYC and making suggested changes. I still think that a blockchain based diamond exchange is a challenging proposition, however the fact that they are the only players in the space right now could give them an advantage if they are able to execute properly.

Nice idea and unconventional, it could be implemented with a good development in the new future.

Trying to enter a very niche' field with a not so clear plan of execution

A very well-thought out business proposition. Clever adoption of blockchain technology in the the transaction of diamonds.

No prototype, information is all over the place

From the pure economical standpoint creating an effective secondary market for an artificially priced asset will fix the the gap between the perceived and intrinsic values. That, most likely, shall hurt its professional manufacturers and distributors. I really doubt that it will be the case, but would love to see what CEDEX will really become. At the moment it looks more like an attempt to use ICO hype for the purposes of dragging in more amateur traders into an arguably most overvalued asset of the modern times. It's a double trouble or/and a mother-load in terms of Risk/Reward Ratio.

Both the vision and the product concept don't look much appealing for me, too many diamond market problems and token economics difficulties are either not address or oversimplified in the White Paper (e.g. variety of standards and classifications, gemologists trustworthiness, regional taxation, token classification and reporting etc.).

Are diamonds a girls best friend? How do we avoid blood diamond? These are all questions and challenges that this ICO could help to solve - it is potentially a good example of a use case where blockchain is an ideal partner.

Team looks good - though listing the same advisor twice seems a little over enthusiastic?

Overall will be an interesting one to watch.

Let's see what will come out of it.

Great team and vision! Saar is a leader to watch for and is leading the team with an example.