warren@africabitcoincorporation.com
Guild Financial Advisory - Aquis Corporate Adviser
Evangeline Klaassen
evangeline.klaassen@guildfin.co.uk
Oberon Capital - UK Corporate Broker
Nick Lovering, Adam Pollock
Tel: +44 203 179 5300
Redchurch Communications - Financial PR & IR
John Casey / Nicky Bagheri
abc@weareredchurch.com
Questco Corporate Advisory Proprietary Limited - JSE Sponsor
Taryn Carter
sponsor@questco.co.za
RDKM Advisory Proprietary Limited - Legal Advisor
Reggie Dlamini
reggie@altvestcapital.co.za
CTSE Registry Services Proprietary Limited - Company Secretary and Transfer Secretary
Estelle de Jager
admin@ctseregistry.co.za
Cirrus Securities Proprietary Limited - NSX Sponsor
Chastin Bassingthwaighte
sponsor@cirrus.com.na
The Board of directors of the Company (the "Board") accept responsibility for the contents of this announcement.
Important Notice:
The Company holds treasury reserves and surplus cash in Bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board considers holding Bitcoin to be in the best interests of the Company, the Board remains aware that the financial regulator in the UK, the Financial Conduct Authority ("FCA") considers investment in Bitcoin to be high risk. At the outset, it is important to note that an investment in the Company is not an investment in Bitcoin, either directly or by proxy. However, the Board considers Bitcoin to be an appropriate store of value and growth for the Company's. Such an approach is innovative, and the Board wishes to be clear and transparent with prospective and actual investors regarding the Company's position in this regard.
The Company is neither authorised nor regulated by the FCA, and cryptocurrencies (such as Bitcoin) are unregulated in the UK. Additionally, the JSE does not at this time have any regulatory framework in place to regulate issuers investing in crypto assets. Once such regulatory framework has been put in place by the JSE, the Company undertakes to adhere thereto. As with most other investments, the value of Bitcoin can go down as well as up, and therefore the value of the Company's Bitcoin holdings can fluctuate. The Company may not be able to realise its Bitcoin exposure for the price it originally paid, or even for the value the Company ascribes to its Bitcoin positions, due to these market movements. Furthermore, because Bitcoin is unregulated, the Company is not protected by the UK's Financial Ombudsman Service or the Financial Services Compensation Scheme.
Nevertheless, the Board has taken the decision to invest in Bitcoin, and in doing so is mindful of the special risks Bitcoin presents to the Company's financial position. These risks include (but are not limited to): (i) the value of Bitcoin can be highly volatile, with value dropping as quickly as it can rise. There is a risk that all money invested in Bitcoin by ABC may not be realised; (ii) the Bitcoin market is largely unregulated. There is a risk of ABC losing money due to risks such as cyber-attacks, financial crime and counterparty failure; (iii) the Company may not be able to sell its Bitcoin at will, should it be required. The ability to sell Bitcoin depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and (iv) crypto assets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. In addition, there is a perception in some quarters that cyber-attacks are prominent which can lead to theft of holdings or ransom demands. The Board does not subscribe to such a negative view, especially in relation to Bitcoin. However, prospective investors in the Company are encouraged to do your own research before investing in ABC.
Forward looking statements
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Investors and potential investors should not place any reliance on forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
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