Block Commodities Ltd (BLOC)
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
22 March 2018
BLOCK COMMODITIES LIMITED
("Block Commodities" or the "Company")
Block Commodities Limited / Epic: BLCC / Sector: Mining
Collaboration Agreement with Wala and the Dala Foundation
Block Commodities Limited, the innovative commodity trader operating in Africa, is pleased to announce it has entered into a strategic partnership with Wala, a blockchain-powered financial services platform, and Dala, a cryptocurrencytoken issuer that will support the operationalization and further development of scalable, blockchain-enabled financial platforms for developing markets.
The agreement complements the Company's Joint Venture with FinComEco, a subsidiary of GMEX Group Limited, announced last November, whereby Block Commodities, FinComEco, Wala and Dala, will be working together to develop and operate a web-enabled platform using the block-chain ledger for its agricultural commodity trading initiative in sub-Saharan Africa. In particular, this collaboration agreement establishes a relationship whereby Wala will support the use of the Dala utility token as the functional token for the food commodities cycle trading ecosystem which is currently being established by the Company and its partner, FinComEco.
Under the agreement terms, the Block Commodities and FinComEco Joint Venture will provide the equivalent of US$10M in Dala token loans to approximately 50,000 smallholder farmers across Sub-Saharan Africa, starting in Uganda, in order for them to purchase fertiliser. Wala will support the Company and FinComEco's integration into Wala's financial platform and incorporating the Dala token.
The collaboration aims to integrate the Block Commodities' trading business and FinComEco agricultural commodities ecosystem through the deployment of blockchain to maximize the value of African agricultural commodities to smallholder farmers.
Block Commodities Executive Chairman, Chris Cleverly, said "This collaboration represents a potentially significant reset for finance and commodities market development in Africa, a problem that is being addressed by bold and innovative technologies and partnerships. We are helping to empower African farmers through loans to purchase fertilizer and have better access to markets".
To enable a zero-fee and borderless financial system for emerging market consumers, a new cryptographic token, Dala, was issued by the Dala Foundation. Dala is a general-purpose ERC-20 token that will support the operationalization and further development of scalable, blockchain-enabled financial platforms for developing markets around a common unit of account and microeconomic incentive structure to create strong network effects. Dala already has utility, through its launch partner Wala, within the Wala Financial Platform. The Dala ecosystem expands through partnerships across borders and financial services, enabling consumers and enterprises to transact, save, lend, and invest with Dala. For additional information please visit: https://dala.org/
Wala, the launch partner of Dala, is a mobile financial services platform built on the Ethereum blockchain. Tackling financial exclusion, their mission is to close the gap between consumers and financial service providers in emerging markets. Wala works with specialist providers in each market they're operational in, including banks, to offer a full suite of financial services like transactional banking, remittances, loans and insurance. Partners benefit from the reach and low-cost access to previously unserviceable customers enabled by the Wala platform. The Wala Financial Platform provides access to transactional banking, remittances, loans and insurance for the unbanked and underbanked. Wala works with best-of-breed specialist providers in each market they operation in, including banks, to offer a full suite of financial services. Wala will support this collaboration with software solutions and integrations into the Wala Financial Platform and the Dala ecosystem. For additional information, please visit: https://getwala.com/
Wala Founder and CEO and Dala Director, Tricia Martinez, said "This is an industry changing partnership that will drive much needed economic growth and financial inclusion in African markets. Blockchain technology and cryptocurrency have the potential to start financial innovation in these markets and Dala is at the forefront. We are very pleased to work with Block Commodities and FinComEco to provide the necessary tools and resources for these farmers and markets."
The Block Commodities and Wala/Dala joint venture will be piloted in Uganda. The local Ugandan community has been instrumental in testing Wala prototypes and demonstrating that digital technology can be used to effectively remove key barriers to the adoption of financial services by the underbanked and underserved: access, cost and embedded economic incentives.
Chairman of GMEX Group and CEO of FinComEco, Hirander Misra commented, "This partnership will drive financial inclusion in Uganda and across Sub-Saharan African countries by providing smallholder farmers with cheaper access to finance and inputs (pesticides, fertilisers and seeds), which will result in an increase in agricultural output. He added, "This combined with electronic warehouse receipts financing and easier access to markets through the FinComEco commodity exchanges will ensure better price transparency enabled by Blockchain technology therefore increasing individual incomes and national GDP."
The Directors of the Company accept responsibility for the content of this announcement.
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About Block Commodities
Maximising commodities ecosystem with blockchain technology
Block Commodities' strategy is to maximise the value of African agricultural and other commodities through the deployment of blockchain technology. The resources will be linked through the vertical integration of primary industries down to consumers via blockchain platforms. Using blockchain's ability to dynamically incorporate all market participants into an efficient ecosystem, Block Commodities aims to facilitate the commercial operation of such ecosystems in the context of the agricultural production cycle.
In reclaiming the value lost in African agricultural and extractive industries through inefficient supply and distribution systems, Block Commodities will help African farmers raise productivity and secure better returns for produce. This is an important step in establishing African communities as significant future global agricultural producers.
|End of Announcement||EQS News Service|