Vancouver, B.C., February 16, 2022. MineHub Technologies Inc. (TSXV: MHUB, OTCQB: MHUBF) (“MineHub” or the “Company”) and Kimura Capital LLP (“Kimura”) are pleased to announce they have agreed to form a joint venture to develop a solution which will enable investors to syndicate their capital in providing trade finance to commodity supply chains. The Syndication Application will leverage the MineHub blockchain platform and the recently launched MineHub Trade Finance and ESG applications to respectively reduce the credit risk and verify the ESG compliance.
The Syndication Application will provide investors with exposure to a high yield, relatively low risk, but traditionally difficult to access asset classes. Investors with sustainable or impact investment goals can verify the compliance of the transactions with their ESG criteria certified on the underlying blockchain platform. The syndication of capital will increase the volume and size of the qualifying transactions that can be financed, and as such provide working capital into supply chains, including those that contribute to raising ESG standards.
Arnoud Star Busmann. CEO of MineHub said “This venture is a natural expansion of our partnership with Kimura. We have a shared vision for how blockchain technology will transform commodity trade finance. The real-time transparency and immutability will reduce credit and ESG compliance risk. This in turn will help unlock liquidity pools that are waiting for efficient and transparent channels to deploy capital into commodity supply chains, capital which is increasingly linked to ESG compliance.”
The Syndication Application will match the credit risk attributes and ESG credentials of qualifying transactions with the pre-defined investment criteria of qualified investors, as well as coordinate the pooling of their capital commitments into a joint financing of the underlying transactions. The risk and ESG compliance of the transaction will be underwritten by a specialist originator who will also coordinate the funding, disbursement and repayments.
Kristofer Tremaine said “The demand from the investment market to access trade finance via a qualified route is significant. However, recent market events such as Greensil have highlighted the requirement for absolute transparency. MineHub’s syndication platform can deliver on the technology and transparency and Kimura’s commodity trade finance expertise will help to refine the product into a market leading offering.”
MineHub will develop the application and provide its technology under license to the joint venture. Kimura will be the first originator and brings its expertise, licensing and network of customers and co-financiers to jumpstart the liquidity on the platform. The venture’s operations will be fully segregated from Kimura’s regular business, enforced by the privacy guarantees of the underlying blockchain technology.
About Kimura Capital
Kimura Capital LLP is a regulated asset management firm headquartered in London, with offices and personnel in 15 countries across the globe. Kimura provides liquidity and working capital to commodity market participants on a risk adjusted basis, both short and long term. Kimura invests in the real economy, funding the production, processing and transportation of responsibly sourced vital resources, materials and food, required to support the global economy.
About MineHub Technologies
MineHub is an open, enterprise-grade platform for digital trade, bringing efficiency, security and responsibility to mining and metals supply chains. MineHub connects the many parties involved in a physical commodity transaction in a digitally integrated workflow, operating on the basis of shared information secured by a global enterprise blockchain network. Users of MineHub are in full control of their supply chains, enabling them to optimize their use of resources, respond better and faster to customer needs and have confidence in the resilience, security and compliance of their operations.
Arnoud Star Busmann
CEO, MineHub Technologies Inc.
Citigate Dewe Rogerson, Angus Campbell at Angus.Campbell@citigatedewerogerson.com
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Cautionary Note Regarding Forward-Looking Statements
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 release.
This news release contains statements that are considered “forward-looking information” within the meaning of applicable Canadian securities legislation (“forward-looking statements”) with respect to MineHub including, but not limited to, statements with respect to MineHub’s future operational plans, the timing of such plans and anticipated customers. Forward-looking statements are statements that are not historical facts are generally, but not always, identiﬁed by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although MineHub believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company’s ability to raise sufficient capital to fund its operations, applications and for general working capital purposes, changes in economic conditions or ﬁnancial markets, changes in laws or regulations that could have an impact on the Company’s operations, dependence on its key management personnel and market competition. Other risk factors are identified in the Company’s prospectus dated August 18, 2021, available on the Company’s SEDAR profile at www.sedar.com. There may be other risk factors not presently known that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. The forward-looking information is made as of the date included herein. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of MineHub’s management on the date the statements are made. However, except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors should change.