TechFinancials to develop blockchain ticketing platform with Footies Tech

30th Oct 2018 07:55

(Sharecast News) - Fintech software company TechFinancials has entered into non-binding heads of terms with Footies Tech, a blockchain-based ticketing platform for sports venues and teams, to establish a new company subsidiary 'NewCo', it announced on Tuesday.The AIM-traded firm noted that Footies was chaired by Ian Ayre, who was previously chief executive officer of Liverpool Football Club, and current chief executive officer of the Nashville Major League Soccer franchise.NewCo was being established to develop and market a blockchain-based digital venue management system, while the initial phase of the product would focus on enabling sporting organisations to take "full control" over their event economics, TechFinancials explained.Initially, TechFinancials would hold 75% of the shares of NewCo, and Footies would hold the remaining 25% of the shares.TechFinancials and Footies would establish the NewCo in an agreed jurisdiction, which was likely to be the United Kingdom.Under the heads of terms, TechFinancials would commit to support the financial needs of the NewCo with a cost cap of $0.5m for the development of a proof-of-concept agreement between NewCo and a European football club, with employees' salaries, administration costs, business development and other expenses to be agreed by the two parties.All costs borne by TechFinancials, or money paid to NewCo, would be deemed a shareholder loan by TechFinancials, with customary terms and conditions to be agreed."In addition to the costs described above, TechFinancials will license its technology, free-of-charge to NewCo in order for it to build a solid software infrastructure and shorten development timescales," the TechFinancials board said in its statement."This commitment is subject to execution by NewCo of at least one proof-of-concept within three months of the parties signing the agreement."