TIDMBLU
RNS Number : 9906Q
Blue Star Capital plc
02 November 2021
2 November 2021
Blue Star Capital plc
("Blue Star" or the "Company")
Pendulum raises $5 million
Blue Star Capital plc (AIM: BLU), the investing company with a
focus on esports, payments, technology and its applications within
media and gaming, notes the announcement by SatoshiPay, one of its
investee companies, earlier today.
SatoshiPay has announced that Pendulum, its smart contract
network dedicated to connecting fiat payment networks to
decentralised finance (DeFi) networks, has raised $5 million in an
oversubscribed private sale round of its upcoming PEN token from
strategic partners. The funds raised will be used to continue the
development of Pendulum.
Background to the private presale of Pendulum's PEN token
Pendulum is an open-source blockchain built on the stable and
existing Substrate framework that aims to establish the missing
link between fiat and the DeFi ecosystems through a sophisticated
smart contract network. It is intended that Pendulum will connect
DeFi to the foreign exchange market, building automated market
makers (AMMs) to introduce scalable liquidity pools for fiat
currencies, and create yield earning opportunities for fiat token
holders.
SatoshiPay started the development of Pendulum in April 2021 and
later, in May 2021, received an R&D grant from the Stellar
Development Foundation to advance its development. The first
prototype of Pendulum, which features a bridge to Stellar and AMM,
similar to that found in Uniswap, is now available on SatoshiPay's
internal Pendulum testnet. SatoshiPay expects that the next stages
of development for Pendulum will include a public testnet and
mainnet, the introduction of sophisticated smart contracts to the
Stellar network while simultaneously adding a set of robust fiat
assets to the Polkadot/Kusama ecosystem.
Pendulum has raised $5 million for its further development by
the private sale of PEN tokens. The directors of the Company have
been advised that the funding allows for SatoshiPay to be
contractually retained to continue to develop Pendulum.
Advantages derived by SatoshiPay from Pendulum's token sale and
network launch
The board of Blue Star believes the successful token presale and
future launch of the Pendulum blockchain is a critical step towards
SatoshiPay commercialising its core technology, thereby creating a
number of advantages for SatoshiPay and its shareholders. These
include:
-- Pendulum has contractually appointed SatoshiPay to build the
Pendulum blockchain and this contract will be satisfied through a
combination of cash and PEN tokens which will generate significant
revenues for SatoshiPay for a number of years;
-- Pendulum is being built around two large blockchain
ecosystems, Stellar and Polkadot. As such, SatoshiPay expects to
become involved in an increasing number of opportunities within the
decentralised finance space, a market currently estimated at $100
billion;
-- SatoshiPay expects that the revenue it derives from Pendulum
development should be sufficient to fund SatoshiPay for the
foreseeable future significantly reducing any need for SatoshiPay
to raise equity finance;
-- Pendulum's ability to facilitate efficient currency exchange
is expected to play a key part in the future roll-out of DTransfer,
SatoshiPay's cross-border money transfer service business;
-- The publicity and excitement created by Pendulum will be
valuable to SatoshiPay in attracting and retaining key personnel as
well as new business customers; and
-- SatoshiPay believes it will also benefit from the value
increase of the tokens on the Pendulum network.
Quote from Meinhard Benn
"We are extremely satisfied with the outcome of Pendulum's
private token presale. The fact that we were significantly
oversubscribed shows us that there is strong demand for our
upcoming network and token. New relationships with specialised
funds, platforms and protocols formed during the presale will help
us to firmly establish the Pendulum network and its PEN token which
we aim to develop into major building blocks of the rapidly growing
decentralised finance industry."
Quote from Derek Lew
"SatoshiPay established Pendulum, a wholly owned subsidiary, as
a vehicle to leverage foreign currency exchange across multiple
blockchains for its DTransfer solution and this increased access
utilising Pendulum is expected to build significant value for
SatoshiPay. SatoshiPay has been carried in Blue Star's accounts at
a valuation based on the last external fund raising which took
place in March 2019. Since then SatoshiPay has launched DTransfer
and now Pendulum and the board looks forward to the future for
SatoshiPay with optimism and intends to explore how this can be
best realised for Blue Star and its shareholders."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
For further information, please contact:
Blue Star Capital plc +44 (0) 20 3608 3019
Derek Lew
Cairn Financial Advisers LLP +44 (0) 20 7213 0880
(Nominated Adviser)
Jo Turner / Liam Murray
S tanford Capital Partners Limited
(Broker)
Patrick Claridge / John Howes /
Bob Pountney +44 (0) 20 3650 3650
About Blue Star Capital
Blue Star is an investing company with a focus on new
technologies. Blue Star's investments include SatoshiPay Limited, a
payments business using blockchain technology; 6 early-stage to
mid-level esports companies, including Guild eSports plc, a global
eSports business headquartered in London whose lead investor is
David Beckham and Dynasty eSports Pte Ltd., an eSports platform
with a mission to become the largest eSports franchise in Asia;
Leaf Mobile Inc., a mobile leading free-to-play mobile games group;
NFT Investments plc, a company that engages, partners, incubates
and develops non-fungible tokens; and Sthaler Limited, an identity
and payments technology business which enables a consumer to
identify themselves and pay using just their finger.
Forward looking statement disclaimer
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Company's control, are difficult to
predict, and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
The Company cautions shareholders and prospective shareholder
holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the
date of this announcement. The forward-looking statements made in
this announcement relate only to events as of the date on which the
statements are made. The Company will not undertake any obligation
to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement
except as required by law or by any appropriate regulatory
authority.
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END
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