Ann: Finalisation of Ivy Project divestment, page-26

Based on the history below, my impression is:

1. CCA was a 33% shareholder in Ivy. As a shareholder, CCA had rights to any capital or income distribution.

2. Ivy raised US$16.5 million through the issue of 10 cent IVY tokens (and not IVY shares) to entities participating in what some people would call a "crypo-currency Ponzi Scheme"

3. The crypo-scheme went pear-shaped and currently IVY Coin appears valued at 0.16 cents. In other words, the retail investors in the Ponzi Scheme lost 98.4% of their 10 cent investment

4. IVY raised $16.5 million, which are capital proceeds from investors

5. The impression is Ivy had $3.94M of this $16.5M raised available for a capital return to its shareholders, of which CCA was a 33% shareholder. Therefore, CCA received a $1.3M capital return and the other shareholders received $2.64M

6. Therefore, CCA invested $99,999 into Ivy, which returned $1.5M or 14,000%; what is called a 14,000 bagger

7. The buyers of Ivy Coin, possibly including yourself, lost 98.4% of their investment

8. Therefore, money was transferred from the naive to the shrewd, as is characteristic if any so-called or alleged "Ponzi Scheme"

Regards




31 October 2017
Change Financial is seeding the new venture with US$100,000 for a 33% equity stake in the Ivy Project.

17 April 2018
In February, Ivy completed its most recent funding round, raising US$16.5 million (A$21.4 million1 ), via a private placement at a price of US$0.10 per token.

Change Financial has a 33% equity holding in Ivy and now holds 130 million ivyKoin tokens. Change Financial’s holding of tokens will represent 15% of the 868 million circulating supply of ivyKoin tokens. In February, Ivy completed its most recent funding round, raising US$16.5 million (A$21.4 million1 ), via a private placement at a price of US$0.10 per token. ... Ivy has generated 1.6 billion tokens and will hold 742 million tokens in reserve for future growth, business development and treasury function.

26 Oct 2018
Prior to year-end, Ivy received $17m in proceeds from a token pre-sale that occurred in February 2018, raised in connection with the issuance of Ivy’s White Paper. Subsequent to the pre-sale, ivyKoin tokens were issued pursuant to a token generation event in April 2018. The token pre-sale proceeds consisted of $12m in cash receipts and $5m in digital assets. The proceeds are being used to develop the IvyKoin Network.

On 4 July 2018, CFL signed a Call Option Agreement to acquire the remaining 66.66% of membership units in Ivy. Refer to Post Balance Date Events Note 31 for further details. At the date of this financial report, the option to acquire the remaining units had not been executed.

12 December 2018
The key outcomes of the review were that the Company should focus on completing its enterprise solution and seek opportunities to further monetise its non-core businesses, mobile banking provider ChimpChange and the Ivy blockchain project

11 January 2019
U.S-based fintech company Change Financial Limited (ASX:CCA) (“Change Financial” or the “Company” is pleased to announce that it has monetised its investment in the Ivy Project for cash proceeds of US$1.5 million. The terms of the sale agreement entered into by Change Financial results in the Company selling its 33% equity stake to an American based company, Bazda LLC. In addition, but separate to the sale, the Company will receive a distribution of capital from Ivy Koin LLC.