The Upcoming AGM on Isle of Man
The Annual General Meeting (AGM) of the public-listed VELTYCO GROUP PLC (“VELTYCO“) is just around the corner. On July 11, 2018, it will take place at 10.30am on Isle of Man (details here). The agenda of the AGM is currently not very exciting. This is a bit disturbing, as VELTYCO is confronted with massive challenges, restructuring and official procedures.
According to the published agenda, the Company’s management seeks shareholder approval for the usual points for a business-as-usual situation. A vote is to be taken on the re-election of the directors, the appointment of auditors, the approval of the declaration by the directors of a dividend, and the establishment of authorized capital. Furthermore, the shareholders should approve the Company’s annual report and accounts for the period ended 31 December 2017. The latter, actually, is a critical point in our view. But not the only one. The company restructured its management without providing sufficient information. The founder and still major shareholder Uwe LENHOFF, Hans DAHLGREN, and Ilan TZORYA left the board. Melissa BLAU was appointed CEO and Rainer LAUFFS, a friend of LENHOFF, joined the board. A lot of new things worth a discussion in an AGM, we guess.
The questionable Annual Report 2017
Based on many analyses we have carried out, we can state that VELTYCO‘s annual report and accounts (available here) are at least questionable. The ownership structure of key business partners such as ALTAIR ENTERTAINMENT N.V. around Uwe LENHOFF and Dmitriev YAROSLAW was not disclosed, nor were many of the transactions with related companies. Who are VELTYCO’s major shareholders and what is their business relationship with VELTYCO? What happened with Option888 in 2017. It used to be a strategic subsidiary of the then SHELTYCO in 2016 at the time of the listing? What are the consequences of discontinuing the Binary Options business? What is the new business strategy? These are all questions that should be discussed at an Annual General Meeting.
We have quite a lot of information and will provide some answers until the AGM. This should support the minority shareholders of VELTYCO in the discussions at the AGM. In addition, we offer shareholders of VELTYCO the opportunity to receive specific information upon request.
Binary Options, Investors’ Claims and the Crypto Transition
VELTYCO intends to become an important company for the crypto-industry. Until recently, the company and its founder Uwe LENHOFF were major players in the field of binary options. In the listing prospectus for 2016, Option888 and the binary options were presented as one of three strategic turnover pillars. The partnership with the binary options platform operator TRADOLOGIC was an essential aspect of the business model. Binary options were banned in many countries and are about to be prohibited by the EU. Thus, VELTYCO has to reinvent itself. In the course of the 2017 business VELTYCO already faced severe issued from regulators. Option888 was prohibited by the German Financial Supervisory Authority (BaFin) as well as by the Austrian and Italian financial market authorities. Investors were warned.
BaFin has informed Capital Force Ltd – commonly known as “Option888” – headquartered in Apia, Samoa, on March 21, 2018, to immediately cease and immediately settle the unauthorized financial commission business. Source: BaFin of 23 March 2018
Surprisingly, there were no official reactions from VELTYCO to these important developments. The Company just published a short press release that it would not be affected by the expected regulation (prohibition) of binary options. It was not even mentioned that its Option888 already received cease and desist orders from regulators in different jurisdictional regimes. Do binary options investors eventually have claims against VELTYCO? We will provide some answers in one of our next telegram.
The Company is trying to move its strategic positioning from a pure marketing company to a sports betting brand operator with its own brand around Bet90. With the acquisition of VARKASSO Ltd, the Company evidently wants to reposition itself around cryptocurrencies and blockchains. VELTYCO thus stands for the binary options industry, which is currently oriented towards cryptocurrencies. This makes VELTYCO one of the few listed crypto-companies in Europe and hence it stands out in the crypto-industry.
If you want to know more about Binary Options, read our reports or the articles by Simona WEINGLASS from The Times of Israel.
Questions for the Annual General Meeting
These are all obvious, necessary and mission-critical topics for the VELTYCO AGM. Isn’t it strange that these points are not on the agenda sent out by the board of directors?
As a reminder: the VELTYCO emerged from a reverse takeover (RTO) between the VELOX3 and the SHELTYCO by Uwe LENHOFF in summer 2016. In the course of the RTO, the company was renamed VELTYCO. Details will be given in our next report.
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