TechFinancials (the Company or the Group) announced that it has signed a binding agreement (Agreement) with Footies Tech Ltd. (Footies) to establish a new company subsidiary (NewCo). On October 30, 2018, the Company announced that it had entered into non-binding heads of terms with Footies in relation to the venture. TechFinancials will hold 75% of the shares of NewCo, and Footies will hold the remaining 25% of the shares. NewCo will establish an option plan for founders and employees that will be 20% of NewCo's issued share capital. NewCo will be registered in the United Kingdom and will be chaired by Ian Ayre, currently Chairman and Founder of Footies, and Chief Executive Officer of Nashville's Major League Soccer club. He was previously Chief Executive Officer of Liverpool Football Club. Under the Agreement, TechFinancials will commit to support the financial needs of the NewCo with a cost cap of $500,000 for the development of a proof of concept by NewCo for a European football club (POC), employees' and consultants' salaries, administration costs and business development and other expenses to be agreed by the Parties. All costs borne by TechFinancials and/or monies paid to NewCo shall be deemed to be a shareholder loan by TechFinancials that will bear no interest. In addition to the costs described above, TechFinancials will license its technological blockchain infrastructure wherever suitable, free-of-charge to NewCo in order for it to build a solid software infrastructure and shorten development timescales. TechFinancials' commitment is subject to execution by NewCo of at least one agreement to develop a POC within three months of the Parties signing the Agreement.

TechFinancials and Footies Tech Ltd. announced that NewCo will be chaired by Ian Ayre, currently Chairman and Founder of Footies, and Chief Executive Officer of Nashville's Major League Soccer club. He was previously Chief Executive Officer of Liverpool Football Club.