To investors,
We are announcing this morning that Reflexivity Research, a company that I co-founded with Will Clemente, has entered into a binding LOI to be acquired by DeFi Technologies, a publicly traded Canadian technology company.
You can read the official press release below, but I wanted to share a few thoughts and context with this group.
First, we started Reflexivity Research less than 18 months ago with the goal of creating world-class, crypto-native research for traditional finance investors. (Here is the letter that I wrote to all of you when we launched). So much of the content in the bitcoin and crypto industry is created for industry insiders. We believed there was an opportunity to create high-quality information for those outside the day-to-day industry.
Second, we obsessed over building something unique. A key piece to this was ensuring that Reflexivity had the largest distribution of any crypto research firm. This was accomplished by building a large email list, along with signing a number of large third-party distribution deals with companies like TradingView, eToro, and others.
Third, we want to have public market exposure, rather than private market exposure, going into a bitcoin/crypto bull market. Too many tech founders have been convinced to stay private for as long as possible. The public capital markets afford unique advantages for the right companies.
Fourth, I believe the best way to monetize information in finance is through asset management. Given our advantage in the research business, it makes sense to team up with a tech-enabled asset management firm that has a differentiated offering.
Fifth, this acquisition is a 100% stock deal. The fact that we are taking no cash should speak volumes about our thoughts on DeFi Technologies, their asset management subsidiary Valour, and their products.
Lastly, I didn’t plan to build Reflexivity Research for such a short period of time before selling it. We have been exclusively focused on building a great business that delivers results for our customers. But when compelling opportunities present themselves, you need to be open to changing your mind and capitalizing on them.
Will, myself, and the rest of Reflexivity Research team are excited to team up with DeFi Technologies. There is a lot of work ahead. Everyone is staying on the team and working diligently to scale our business.
-Anthony Pompliano
You can read the official press release here:
DeFi Technologies Inc. Announces Strategic Acquisition of Private Research Firm, Reflexivity Research LLC, Co-Founded by Anthony Pompliano and Will Clemente
Toronto, Canada, January 9, 2024 - DeFi Technologies Inc. (the “Company” or “DeFi Technologies”) (NEO: DEFI) (GR: RB9) (OTC: DEFTF), a crypto native technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance (“DeFi”), is pleased to announce the signing of a binding letter of intent (the “LOI”) to acquire Reflexivity Research LLC (“Reflexivity”), a premier private research firm that specializes in producing cutting-edge research reports for the cryptocurrency industry (the “Acquisition”).
Reflexivity, co-founded by Anthony Pompliano and Will Clemente, offers high-quality crypto-native research designed for traditional finance investors. The firm is known for unique bitcoin analysis, along with counting some of the most well-known cryptocurrency organisations as clients, including eToro, Solana, Avalanche, NEAR, Fantom, Sei Network, and many more. The company’s research is distributed via their homepage, a premium membership portal, and an email list of over 55,000 investors.
Reflexivity has also focused on creating a large third-party distribution channel for their research, which has been accomplished by partnering with platforms such as TradingView, eToro, and others.
The acquisition signifies DeFi Technologies' inaugural foray into the research domain, underscoring its dedication to fostering knowledge and understanding in the dynamic cryptocurrency sector. With the acquisition, DeFi Technologies not only reinforces its role as a pivotal bridge between traditional and decentralized finance but will now also offer valuable insights and intelligence to its clientele, further enhancing its comprehensive suite of services in the financial ecosystem.
Pursuant to the LOI, DeFi Technologies will acquire all issued and outstanding securities of Reflexivity Research in return for 5 million common shares of DeFi Technologies (the “Payment Shares”). The Payment Shares will be subject to a lock-up schedule of 12 months, with the Payment Shares being released in equal tranches every three months, underscoring mutual confidence in the enduring value of this joint venture. No finder fees will be paid in connection with the Acquisition. The parties intend to enter into a definitive agreement in respect of the Acquisition (the “Definitive Agreement”) by January 31, 2024.
Anthony Pompliano, co-founder of Reflexivity Research, commented, “As traditional finance continues to allocate to this new asset class and structured products become more important in 2024, we are excited to partner with DeFi and the pioneers of the ETP market at Valour. This collaboration will enhance our research and bring insightful, actionable intelligence to our clients, bridging the gap between traditional finance and the burgeoning potential of cryptocurrency markets.”
Olivier Roussy Newton, Chief Executive Officer of DeFi Technologies, commented, “This acquisition marks the beginning of a new chapter for us as we establish our presence in the research sector. Joining forces with Reflexivity Research is a strategic step that will greatly enhance our offerings and provide our clients with access to premier insights in the cryptocurrency market.”
About Reflexivity Research LLC
Reflexivity Research LLC is a leading research firm specializing in the creation of high-quality, in-depth research reports for the bitcoin and cryptocurrency industry, empowering investors with valuable insights. For more information please visit https://www.reflexivityresearch.com/
About DeFi Technologies
DeFi Technologies Inc. (NEO: DEFI) (GR: RB9) (OTC: DEFTF) is a crypto native technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance (DeFi).
With a dedicated focus on industry-leading Web3 technologies, DeFi Technologies aims to provide widespread investor access to the future of finance. Backed by an esteemed team of professionals with extensive experience in financial markets and digital assets, we are committed to revolutionising the way individuals and institutions interact with the evolving financial ecosystem.
Join DeFi Technologies’ community on Linkedin and Twitter, and for more details, visit https://defi.tech/
About Valour
Valour Inc. issues exchange traded products (ETPs) that enable retail and institutional investors to access digital assets like Bitcoin in a simple and secure way via their traditional bank account. Established in 2019, Valour is a wholly owned subsidiary of DeFi Technologies Inc. (NEO: DEFI) (GR: RB9) (OTC: DEFTF).
For more information on Valour, visit https://valour.com
Cautionary note regarding forward-looking information:
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to the entering into of a Definitive Agreement; closing of the Acquisition; development and listing of future ETPs; the regulatory environment with respect to the growth and adoption of decentralized finance; the pursuit by DeFi and its subsidiaries of business opportunities; and the merits or potential returns of any such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but is not limited the acceptance of Valour exchange traded products by exchanges; growth and development of decentralised finance and cryptocurrency sector; rules and regulations with respect to decentralised finance and cryptocurrency; general business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Our Company Reflexivity Research Has Been Acquired