Ann: Strategic Investment in Blockchain Leader, page-223

That's fine Hoss. I agree the "old" RFN is dead.

Where I don't agree and I don't think you quite understand the layers in the technology cake is the BaaS (Blockchain as a Service). Software as a Service (SaaS), Platform as a Service (PaaS), Database as a Service (DaaS), have been fleshed out far more than say BaaS. But what doesn't change is the "position" in the layer cake.

Amazon Web Services (AWS) sells PaaS or DaaS (or DBaaS). Likewise MSFT and ORCL. Loyyal is not nor ever will be in that peer group. Loyal is an application. Sure they may deliver the application as a set of deployable services built upon Blockchain technology but they are NOT a blockchain technology company.

https://www.ibm.com/blogs/blockchain/2017/02/loyyal-transforms-loyalty-hyperledger-fabric/
Q: How is Loyyal disrupting the loyalty industry?
Loyyal uses blockchain and smart contract technology to drastically reduce the costs of setting up and operating a loyalty program. It enables operators to dynamically target consumers in an effective way that allows them to increase revenue and therefore profits.

Q: How do you view blockchain?
If the web is the internet of information, the blockchain is the internet of value because it allows for the storage and transfer of value (or records of value) between parties. It was costly before but now it can be done instantly and in real time with little to no cost. In that same vein, we see Loyyal as the internet of loyalty. It is a network for loyalty rewards.



Anyway it atters not. RFN holds an investment in a loyalty rewards company built to reward via a new method and using a new currency (instead of say frequent flier points).

IMO 2 things will happen both of which will require way more capital than RFN has:

1. RFN will build a distribution channel for Loyyal in SE Asia. That will need capital
2. Loyyal will continue to be successful and will continue to need additional venture capital through Series, B,C,D rounds. That is going to cost RFN a lot of capital to maintain their ownership stake at 12.8% - 14.8%

Loyyal customers bring revenue to Loyyal not to RFN (unless Loyyal is paying a dividend which they aren't). RFN has the opportunity to build its own Loyyal client base.

Now as to why RFN got to make the investment instead of all those Silicon Valley Venture Capital firms .... my guess is they were turned away and had to find funding from those further down the chain so to speak.

IMHO