TechFinancials forms trading platform joint venture

The AIM-traded developer of software for online brokers described IBID as a company specialising in the development of high-growth, online-oriented companies.

TechFinancials' board said the venture would leverage the expertise of both companies to accelerate the growth of one of its B2C binary options trading brands, with an objective of increasing the company's B2C market share, revenues and profitability.

Under the agreement, a new business entity would be incorporated - 51% owned by TechFinancials and 49% owned by the partner.

TechFinancials said it would integrate its branded trading platform into the partenr's online marketing systems, and transfer all other intangible assets related to the traded brand to the venture, following an integration period of three months.

IBID was to make an initial investment of $300,000 (£207,200) in the joint venture, and had undertaken to make additional equity injections as required.

The agreed profit milestone of the venture was a monthly net profit of at least $100,000 for three consecutive months.

"The board believes the joint venture will prove highly beneficial to the group, providing sales and marketing expertise and additional working capital to grow the brand", said TechFinancials CEO Asaf Lahav.

"In addition, we believe the combination of mutual strengths of the company and the partner will substantially strengthen operating performance", he added.