Diversified investment company Chapmans Limited (ASX:CHP) has made its first investment in blockchain technology through the purchase of $1 million in shares of REFFIND Limited (ASX:RFN).
REFFIND is a Sydney-based Software-as-a-Service (SaaS) company focused on enterprise and employees solutions including rewards, loyalty and recognition. REFFIND’s investment in Loyyal provides it with exclusive rights to Loyyal’s blockchain technology platform and product offering in countries across the Asia Pacific region.
Chapmans is now REFFIND’s largest shareholder, with a total holding of 9.33% of shares issued. Chapmans made the purchase following REFFIND’s investment in San Franciso-based Loyyal Corporation (“Loyyal”), a blockchain-based global leader in loyalty and rewards.
Chapmans sees REFFIND as well positioned for growth. A number of Fortune 500 customers are already contracted and using Loyyal’s platform and REFFIND will use blockchain to expand its existing rewards and recognition platform WooBoard.
To facilitate its new focus on blockchain, REFFIND has bolstered its leadership team. The board has appointed blockchain expert Tim Lea as CEO and two other highly credentialed executives into strategic blockchain advisory roles.
“Our investment in the world’s leading blockchain-based loyalty and rewards platform is am important milestone in our strategic growth plan,” said REFFIND board member Anthony Dunlop. “Blockchain is an ideal means of driving our market penetration of corporate and government markets across the fast-growing Asia Pacific region.”
Chapmans has devised a blockchain investment strategy which includes investing in proven and compelling large-scale corporate and government adoption and take up of blockchain technology companies with experienced boards and executive teams and post-revenue status with low entry point pricing, well protected intellectual property and significant capital growth upside.
Blockchain is a digitised, decentralised ledger that allows for trusted, public and immutable exchanges of data between parties. Blockchain technology underpins cryptocurrencies such as Bitcoin, Litecoin and Ethereum, which have all surged in value this year. In the last twelve months, Bitcoin has risen over 1,600% and has recently made headlines as futures of the cryptocurrency began trading on Wall Street.
“We see significant potential in blockchain technology as it underpins cryptocurrencies such as Bitcoin and is now emerging across numerous enterprises and markets worldwide,” said Chapmans’ Executive Chairman Peter Dykes. “This strategic investment meets all our criteria and gives us exposure to a rapidly growing sector.”
