As of January 14th, 2021 Routemaster Capital announced they would be acquiring 51% of the outstanding common (and issued) shares DeFi Holdings Inc. (“DeFi Holdings”). Previously, Routemaster Capital owned 49% of DeFi Holdings and the recent Acquisition of DeFi Holdings common shares will result in a wholly owned subsidiary of the Company.
DeFi Holdings is a company that is focused on investing, incubating and managing trading technologies associated with the currently rapid growing and decentralized financial market. DeFi Holdings mission is to provide both institutional and retail investors easier access to previously hidden returns through this newly emerged decentralized financial market.
Decentralized finance can be considered the next wave of financial innovation on the blockchain. This refers to digital assets, financial smart contracts, financial protocols, and decentralized applications built on Ethereum and various other blockchains. In a nutshell, decentralized finance is financial software built on the blockchain.
The core selling point for decentralized finance’s is the removal of intermediaries from transactions. Traditional finance requires a layer of “trust” with intermediaries like banks or brokers in a transaction between two parties. Decentralized finance removes the need for intermediaries as users can access the network directly.
Routemaster Capital mentions the goal of the investment is to provide shareholders exposure to the emerging decentralized finance industry. This acquisition holds true with Routemaster Capital’s core objective of enhancing shareholder value.
More recently at market close yesterday, Routemaster Capital had some more news. As of January 21st, 2021, common shares will be listed on the NEO Exchange (“NEO”). With the relisting the company will transition to a single purpose company. Originally the company operated as an investment issuer, redeploying its assets and resources. However, they will transition to be a single purpose company focusing on becoming a leader within the emerging decentralized finance industry. Once listed on the NEO Exchange the company will trade under the ticker DEFI. Subsequently, the company has arranged to be delisted from the TSX Venture Exchange effective the close of trading on January 20th, 2021. Overall, this transition is not expected to impact current investors ability to trade shares of the company.
The announcement from market close yesterday also highlights that Routemaster Capital has entered into a definitive agreement as of January 19, 2021 to acquire 20% of the issued and outstanding common shares of Valour Structured Products, Inc. (“Valour”). Valour focuses on creating exchange traded products for digital asset space, this move makes sense given the new single purpose of the company as they want to transition into becoming a leader in the decentralized finance industry.
January 14th, 2021 News: https://ca.finance.yahoo.com/news/routemaster-capital-enters-definitive-agreement-120000531.html
January 19th, 2021 News: https://ca.finance.yahoo.com/news/routemaster-capital-announces-uplisting-neo-220000427.html
