TORONTO--(BUSINESS WIRE)--Tokens.com Corp. (NEO Exchange Canada: COIN)(Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Company”), a publicly-traded company that invests in web3 assets and builds businesses linked to crypto staking, the metaverse and play-to-earn gaming, provides update on assets being held with Genesis Global Capital, LLC (“Genesis”).
In the evening of January 19th, 2022, Genesis Global Capital filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. Tokens.com has a loan facility with Genesis, for which the Company was required to post collateral in token assets. Based on the closing price on January 19, 2023, this collateral was worth approximately US$749k. Tokens.com has a loan outstanding against this collateral of US$138k. The difference between the collateral and the loan value represents approximately 3.1% of Tokens.com’s total assets of US$20.0 million as at September 30, 2022, our financial year-end.
Tokens.com has been aware of the issues at Genesis and has been requesting to have its collateral returned and repay the loan outstanding. Redemption of collateral for all lending clients has been frozen by Genesis since November 16, 2022. Genesis is currently establishing a customary claims process, which could put all or a portion of the value of the Tokens.com’s net collateral at risk.
The unavailability of these tokens does not have a material impact on Tokens.com’s financial position or operations. There was no cash held at Genesis. Tokens.com remains well capitalized to meet its future plans and this does not affect the Company’s cash position.
The remainder of crypto assets owned by Tokens.com are held in internally managed wallets which are not at risk of third-party management or custody issues.
Tokens.com management continues to monitor the situation and remains in contact with Genesis to seek a resolution to this situation that is in the best interest of Tokens.com shareholders.
About Tokens.com
Tokens.com Corp is a publicly traded company that invests in web3 assets and builds web3 businesses. The Company focuses on three operating segments: i) crypto staking, ii) the metaverse and, iii) play-to-earn crypto gaming. Tokens.com owns digital assets and operating businesses within each of these categories.
Staking operations occur within Tokens.com. Metaverse operations occur within a subsidiary called Metaverse Group. Metaverse Group wholly-owns a subsidiary called cocoNFT, a platform that allows Instagram users to mint and sell NFTs easily. Additionally, Metaverse Group is a strategic investor in Metaverse Architects, a leading 3D modelling and game development studio. Crypto gaming operations occur within a subsidiary called Hulk Labs.
All our businesses are tied together by the utilization of blockchain technology and are linked to high-growth macro trends within web3. Through sharing resources and infrastructure across these business segments, Tokens.com is able to efficiently incubate these businesses from inception to revenue.
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Forward-Looking Statements
This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of cryptocurrencies, as described in more detail in our securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
Contacts
Tokens.com Corp.
Andrew Kiguel, CEO
Telephone: +1-647-578-7490
Email: contact@tokens.com
Jennifer Karkula, Head of Communications
Email: contact@tokens.com
Media Contact: Ali Clarke – Talk Shop Media
Email: ali@talkshopmedia.com