TechFinancials takes stake in blockchain-based diamond exchange

TechFinancials, a technology provider to financial trading brokers, has entered into a legally binding share purchase agreement with Cedex Holdings.

Cedex will operate what TechFinancials 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.

TechFinancials will make an equity investment of US$200,000 at a post-money valuation of US$10m, representing 2% of Cedex's current capital on a fully diluted basis.

It holds an option to acquire a further 90% of Cedex at an exercise price of US$40,000. Asaf Lahav, CEO, said: 'Following the dividend pay-out announcement on 21 December 2017, we continue to focus our attention on supporting the most profitable parts of our business and in developing new products and technologies, in particular, the new, rapidly growing blockchain-based products and technologies market, to accelerate our efforts in building presence in these new areas.'