VANCOUVER, British Columbia, Jan. 25, 2018 (GLOBE NEWSWIRE) — Block One Capital Inc. (TSXV:BLOK) (Frankfurt:ES3) (the “Company” or “Block One”), an investment issuer focused on the emerging blockchain and digital currency markets, is pleased to announce that it has entered into a definitive agreement with Finzat Block LLC (“Finzat”) to acquire 40% of the New York, USA based mortgage blockchain company. Under the terms of the definitive agreement, the Company has paid Finzat US$600,000.
In order to incentivize and spur the ongoing development of the Finzat business, Block One has offered to make an additional cash payment to Finzat upon the completion of certain milestones, and has offered certain management an option to acquire 6% of Block One’s ownership if Finzat completes a financing, such as an initial coin offering, approved by Block One.
“We are excited to have finalized our investment in Finzat and continue to be impressed by the team and the steadfast progress they have made in taking the concept to prototype stage and commencing early development, while at the same time engaging with stakeholders in the U.S. mortgage market,” said Mr. David Berg, CEO of Block One.
Finzat’s business proposition is to streamline and digitize the approximate ten trillion dollar United States mortgage market using innovative blockchain applications to create a system which is Simple, Auditable, Fault-tolerant and Efficient (SAFE).
“When we launched Finzat, we did so with a comprehensive understanding of the US mortgage market and the inherent pains that various market participants face. Our goal from day one has been to offer a single solution that addresses the many shortcomings of existing systems, while building a business that has a clear-cut monetization strategy. We are pleased with the inbound feedback we have received from industry participants and potential partners. With the investment from Block One, we look forward to selecting a technology partner, engaging with additional stake holders and providing additional updates in the near term,” said Mr. Gnanesh Coomaraswamy, founder of Finzat.
Finzat’s blockchain system aims to solve a myriad of problems in the U.S. residential mortgage market, namely: transaction tracking, compliance, auditing and security. Currently, proof of compliance is not generally thought to be adequately measured or properly saved. Existing systems are not designed to retain data, documents, rules or decisions, nor maintain current or historical loan performance metrics. Traditional audit protocols attempt to ensure quality control standards by sampling a subset of a much larger universe of individual loan portfolios. Weaknesses inherent in this approach can expose lenders and loan servicers to expensive and time-consuming remedies, including fines and loan repurchase obligations. The current system is also subject to security breaches of various forms, trusting upon third party sources to gather and safeguard sensitive data.
The Finzat system aims to permanently preserve loan information at the point of every decision and to eliminate the need to recreate proof at the backend. The need for such a system is validated by more rigorous and standardized compliance regulations that are being phased in, as mortgage markets continue to move towards a mainstream paperless mortgage process. Finzat is developing new protocols to eliminate the risk of compromised data security to allow for more efficient audits and reduce the occurrence of costly, time-consuming remedies for market participants, including originators, aggregators and investors. Finzat is working to provide a single, comprehensive, secure and unalterable document catalogue to significantly reduce the costs of document assembly and storage.
For more information on Block One please visit the Company’s website at: www.blockonecap.com.
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This news release contains forward-looking statements that are based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates. Although Block One believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include availability of capital and financing on acceptable terms, general economic, market or business conditions, including the general acceptability of blockchain technologies, risks associated with regulatory changes, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, and uninsured risks. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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