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VANCOUVER, British Columbia, Dec. 06, 2017 (GLOBE NEWSWIRE) -- Block One Capital Inc. (BLOK.V) (ES3.F) (the “Company” or “Block One”), is pleased to announce that it has signed a binding term sheet (the "Term Sheet") to acquire 40% of the equity of New York based Finzat LLC (“Finzat”), a private company engaged in creating a blockchain system to create a streamlined, digitized mortgage process that is more compliant and SAFE: simpler, auditable, fault tolerant and efficient.
Pursuant to the Term Sheet, the Company is to invest US$600,000 to acquire up to 40% of Finzat. The Company shall make an additional milestone payment of US$80,000 upon Finzat meeting certain conditions set forth in the Term Sheet. The Company and Finzat intend to enter into a definitive agreement to set out the terms and conditions of the acquisition. In the event that no agreement is entered into, the binding Term Sheet will act as the definitive agreement.
Finzat’s blockchain system aims to solve a myriad of problems in the approximately ten trillion dollar United States residential mortgage market, namely: transaction tracking, compliance, auditing and security. Currently, the proof of compliance is generally thought not 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 Finzat system aims to permanently preserve loan information at the point of every decision and eliminates 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 was founded by Mr. Gnanesh Coomaraswamy. Mr. Coomaraswamy holds a PhD in Electrical Engineering and Computer Science from Northwestern University with a strong background in cryptography. He is a published co-author of two papers in the area of authentication and confidential communication across networks; some of the foundational precepts of which were also alluded to in the original whitepaper on blockchain. Mr. Coomaraswamy also holds a Chartered Financial Analyst (CFA) designation and is a Certified Financial Risk Manager.
Prior to founding Finzat, Mr. Coomaraswamy spent over 20 years in the mortgage industry with an established track record in banking and risk management positions with Morgan Stanley, GE Capital and as the Chief Investment Officer and Treasurer of the Federal Home Loan Bank of Chicago. He is a pioneering member of the Mortgage Partnership Finance (MPF) program team at the Federal Home Loan Bank of Chicago, where he successfully managed a $50 billion residential mortgage portfolio and one of the world’s largest interest rate swaps and options positions in the OTC interest rate derivative market. Mr. Coomaraswamy spent 10 years in telecommunications engineering before entering the mortgage industry.
“Finzat is one of the marquis teams and applications in blockchain that we have come across. The founder and his team bring an unprecedented level of acumen and experience to the table - Mr. Coomaraswamy is a true pioneer of blockchain. We are thrilled to be making an investment in such a compelling business,” said Mr. David Berg, CEO of Block One Capital Inc.
Additionally, Mr. Coomaraswamy has joined the Company’s Board of Advisors effective immediately.
For more information on Block One Capital Inc. please visit: 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 may contain 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. These 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. 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 release and has in no way passed upon the merits of the qualifying transaction and has neither approved nor disapproved of the contents of this press release.
FOR ADDITIONAL INFORMATION CONTACT:
Block One Capital Inc.
Office: 604-908-3095; email: email@example.com