Most of the information in this paper is based on publicly available documents such as those that had to be filed with the London Stock Exchange. In this respect, our presentation is merely a summary of the information that analysts and shareholders can find and analyze themselves.
VELTYCO GROUP PLC emerged from a reverse takeover (RTO) in 2016. At that time, VELOX3, already listed on AIM in London, acquired the SHELTYCO ENTERPRISES GROUP LIMITED (“SHELTYCO“) from Uwe LENHOFF and its group of companies in return for new shares. In concrete terms, SHELTYCO was valued at GBP 10.3 million and acquired by VELOX3 against the issue of around 43.7 million new shares.
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LENHOFF Group, specifically LENSING Management Services Limited in the British Virgin Islands, became the majority shareholder of VELOX3, which was then renamed VELTYCO GROUP PLC (“VELTYCO“). The LENHOFF Group then held 85% of the shares in the listed VELTYCO. At least according to the audited document deposited at the Exchange. In its par. 10. INFORMATION ON THE CONCERT PARTY details of the LENHOFF group are given.
According to the available information, back then VELOX3 was almost bankrupt and the business did not work. The company had a number of holdings, which were either already insolvent or on the brink of bankruptcy. The RTO with the SHELTYCO was therefore the rescue anchor.
The freshly squeezed VELTYCO had three divisions after the RTO:
- Betsafe – a partnership with the Swedish Betson AB
- LottoPalace – Betting on Lotto Results
- Option888 – Binary Options
The RTO prospectus states that the management of VELTYCO at the time believed in the binary options business and was convinced of their future.
The Existing Directors and the Proposed Directors believe that binary options is a growing area of financial trading products and expect that this product will continue to show growth in markets such as Asia, Canada, Australia and UK. In the Existing Directors and the Proposed Directors experience, the relatively high customer deposits, of approximately €1,000 – €1,500 per customer, make binary options an attractive product compared to other gaming and gambling activities. Source: VELOX3 RTO prospectus
Unfortunately, binary options have been regulated or banned by several states since 2017. The EU also banned Binary Options in 2018. As early as 2016, it was internationally known that Binary Options were very susceptible to fraud.
So that was VELTYCO in 2016, but by the end of 2017 everything was already different. Neither BetSafe, LottoPalace nor Option888 can be found in the 2017 Annual Report. Without further explanation, all three strategic business areas were discontinued. The VELTYCO of 2016 is no more. In the transition from the VELTYCO of 2016 to the VELTYCO in 2018 there is a lot of exciting information, which we will explain in the next reports. In case you have any information or questions please share them with us using the whistlebloser system below:
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