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Lionsgold Limited offers to increase TRAC holding to 100%
Gold focused exploration and development company Lionsgold Limited announced on Friday that it has made a £1.35m share for share offer to increase its ownership in TRAC Technology to 100%.
The company currently holds a 55% stake in TRAC Technology, which has developed a platform that enables individuals to buy, sell and hold gold and silver bullion in a secure and efficient manner and has assisted Lionsgold in the development of the Goldbloc digital currency.
According to Lionsgold, the acquisition will increase the flexibility and shorten time-frames for implementing corporate and business strategies with TRAC and Goldbloc moving forwards.
David Price, non-executive chairman of Lionsgold, said: "The Goldbloc mobile phone banking application is on schedule for release in the UK this quarter. The board considers the full buy-out of TRAC to be strategically and operationally important and we believe the timing of this corporate transaction at the current valuation to be opportune as we expect the understanding, acceptance and value of Goldbloc to increase with product rollout."
Should the increase in ownership be conducted successfully, Lionsgold intends to assign the three-year exclusive right to utilise the Railsbank Technology platform for gold-related productions to be transacted through bank accounts to TRAC.
Lionsgold owns 12.5% of Railsbank, whose platform is required by Goldbloc to utilise physical gold in customer's accounts.
As of 1101 BST, Lionsgold Limited's shares were up 14.74% at 2.64p.