I figured it would be a good time to update the First Growth Funds Portfolio Overview considering all of the news and developments we have received in recent weeks.
I have underlined and bold the updates since the last overview was posted.
As per the Activities Report for the Quarter Ended 30 June 2019, the company are "taking steps to convene a meeting in order to seekshareholder approval as required by Listing Rule 11.1.2 in consultation with ASX. A proposal has been sent to the ASXfor their review and consideration on FGF’s business and strategy going forward.In the meantime the Company has been proactively addressing ASX concerns and has materially reduced itsinvolvement in cryptocurrencies and will not provide any advisory services to this sector".
I praise the company for it's recent Quarterly, which provided a very clear snapshot of it's portfolio for shareholders and shed some light on the company's outlook moving forward.
| Portfolio of Digital Currency Investments |
| Investments | Industry | Investment Amount | Return | Announced | Status |
| MailGuard (Global Guard)(https://www.mailguard.com.au/ and https://www.globalguard.io/) | GlobalGuard is a new cybersecurity ecosystem designed to offer cryptocurrency security and protect businesses from email malware, phishing and social engineering attacks. | US $100,000 | To be confirmed | 20/03/2018 | "FGF is seeking a refund from Global Guard" - Activities Report for the Quarter Ended 30 June 2019 |
| Bankorus (https://www.bankorus.com/) | Private wealth management platform powered by AI and built on the blockchain | US $100,000 | To be confirmed | Shareholder Update – May 2018 | "FGF received 100% refund from Bankorus. FGF previously made investments in Bankorus with Ethereum tokens. The refunds have been made withEthereum and FGF will continue to hold until prices improve". - Activities Report for the Quarter Ended 30 June 2019.FGF have received $100,000 worth of Ethereum tokens back from Bankorus. FGF will hold these Ethereum tokens until prices improve.
The price of ETH circa May2018 was approx USD $648. The price of ETH as of writing (5/08/2019) is USD $229. |
| Lympo (https://lympo.io/) | A cryptocurrency token intended to incentivize users to lead healthier lifestyles by rewarding such behavior. | AUD $250,000 | A$250,000 worth of LYM tokens at a price of EUR0.05 each | Shareholder Update – May 2018 | Lympo has successfully completed its ICO and is listed on three digital currency exchanges. Lympo have an ambitious roadmap which forecasts 1.2 Million users of the app by Q2 2020 - https://lympo.io/project-roadmap/. In November 2018, Dallas Mavericks and Mark Cuban partner to launch blockchain fitness app Lympo. LYM tokens -https://coinmarketcap.com/currencies/lympo/
Fitness reward app Lympo is listed in Samsung blockchain wallet - July 11, 2019 (Cryptonews)
There were 100k users of Lympo in April '19. In three months, the number of users doubles to 200k in July 2019 - Lympo LinkedIn |
| EQI Bank (https://eqibank.com/) | The world’s first licenced and fully regulated offshore bank providing Private and Corporate Banking, Cryptocurrency Custody, Fiat and Cryptocurrency Lending and other services. | AUD $250,000 | To be confirmed | Shareholder Update - June 2018 | "FGF is seeking a refund from EQI" - Activities Report for the Quarter Ended 30 June 2019 |
| Proton (https://www.proton.global/) | Digital Marketing via Data Fusion and Collaboration | AUD $200,000 | To be confirmed | Shareholder Update - June 2018 | Blockchain Global and Blockshine Technology are listed as investors of Proton. Roadmap featured on the company's website.
FGF previously made investments in Proton and Bankorus with Ethereum tokens. The refunds have been made withEthereum and FGF will continue to hold until prices improve.
FGF Received 50% refund for Proton ($100,000) with the balance expected to be paid in October - Activities Report for the Quarter Ended 30 June 2019
FGF have received $100,000 worth of Ethereum tokens back from Bankorus. FGF will hold these Ethereum tokens until prices improve.
The price of ETH circa June 2018 was approx USD $522. The price of ETH as of writing (5/08/2019) is USD $229. |
Human Protocol (https://hcaptcha.com/ and
https://www.hmt.ai/) | Big Data | AUD $200,000 | To be confirmed | Shareholder Update - June 2018 | Roadmap featured on the company's website. Based in the U.S. Company has yet to list on an exchange. Product development scheduled to be completed in Q3 2019
Human Protocol (hcaptcha) project is performing well and are planning to list their token on a major exchangethis year. FGF will seek to sell its tokens as soon as possible, once listed - Activities Report for the Quarter Ended 30 June 2019
Featured article on Fast Company - 17 July 2019 -
https://www.fastcompany.com/90377406/suspicious-of-googles-recaptcha-heres-a-popular-alternative |
| Acudeen (https://acudeen.com/) | Invoice Factoring Platform, Company Backed by US Venture Funds | Nil. Receive fees & Tokens for Digital Currency Business Unit Servies | FGF will receive 20% of the token pool and will be entitled to a US $250,000 fee payable once the first US $1M is raised in the token sale. FGF is also entitled to 6.25% fee on the sale of tokens held by Acudeen. First commission payment is due once Acudeen raises US $5M. | 28/06/2018 | Acudeen has provided written notice to the Company to transfer back their unsold ACU tokens. FGFwill comply with this notice and arrange for the transfer of all of its unsold ACU tokens to Acudeen.FGF has also provided written notice of its intentions to also terminate the agreement - Restructure of Cryptocurrency Investments & Board Changes (8 July 2019)
"FGF have returned its ACU tokens back to Acudeen. FGF has determined not to enter into any further agreements similar to the Token Facilitation Agreement signedwith Acudeen" - Activities Report for the Quarter Ended 30 June 2019 |
| CCP Technologies (https://www.ccp-technologies.com/) | Blockchain and IoT Solutions for the Food Sector | $250,000 at 2 cents per share with a one for one free attaching 2 year matching unlisted options exercisable at 3 cents | FGF invested $250,000 plus also facilitated the investment from
Penta Global that invested $561,247 using its tokens. FGF is entitled to a $33,675 fee for facilitating the investment. FGF also received a fee from its pre-IPO investment. | 17/07/2018 | In January 2019, CCP announced it has been tasked with delivering IoT sensors for Cre8tec, a “rodent monitoring equipment manufacturer” and has signed a head agreement for product development with Eposode Data Solutions which includes an initial contract to design and develop a new IoT device for the consumer market. On March 14 2019, CCP announced they has boosted its contract IT development revenue by 35% since February, while its subscription sales pipeline has now exceeded $800,000. Excluding reseller sales, this pipeline only includes direct sales, with a further $288,000 at contract stage in the pipeline for 1,300 smart monitoring tags.
https://*********.com.au/ccp-technologies-largest-us-purchase-order-iot-temperature-monitoring-solution/ |
| YPB Group (YPT) (https://ypbsystems.com/) | Anti-Counterfeit Platform and Solution | AUD $500,000 | The fees payable to FGF under the agreement is as follows:
i) receive 20% of the Tokens issued by YPB under the agreement. ii) be entitled to an activation fee in the aggregate amount of US$175,000 to be paid in US dollars
from the Net Proceeds YPB receives from the first US$1 million raised through the sale of Tokens allocated to YPB (First FGF Activation Fee).
iii) be entitled to an activation fee in the aggregate amount of US$175,000 to be paid in US dollars from the Net Proceeds YPB receives from the second US$1 million raised through the sale of Tokens allocated to YPB (Second FGF Activation Fee).
iv) be entitled to receive commission equivalent to 6.25% of the US dollar value received from the sale of all Tokens allocated to YPB under this Agreement (FGF Commission). The FGF Commission
shall accrue until such time as YPB has raised at least USD$5 million from the sale of Tokens allocated to it. - YPB:Response to ASX Query 12/04/19 | 29/08/2018 | "Terminated Token Facilitation Agreement with YPB, Blockchain Global and DigitalX. FGF has determined not to enter into any further agreements similar to the Token Facilitation Agreement signedwith YPB" - Activities Report for the Quarter Ended 30 June 2019 |
| Hypercash (formerly known as HCASH) (https://h.cash/) | Digital currency protocol with its own unique blockchain similar to Bitcoin or Ethereum with a market cap of $150M and with a daily trading volume of $25 Million | Under the placement terms, there is no dilution or direct investment in FGF | FGF will act as a broker and receive 6% or up to $900,000 in fees for facilitating the investment in other listed companies. FGF to receive up to $900,000 in commission | 10/09/2018 | "Terminated MOU with HCash Tech Pty Ltd" - Activities Report for the Quarter Ended 30 June 2019 |
| Existing and New Equity Investments |
| Investments | Industry | Investment Amount | Return | Announced | Status |
| Cloud Lumen (http://www.cloudlumen.com/index.html) | Outdoor Smart LED Lighting Market | AUD $350,000 | Ownership of 18.5% of the company | Ann: FGF Invests in IoT company Cloud Lumen - 28/12/2016 | Cloud Lumen revealed their intent to trade on the ASX on 29/08/2017. The company have yet to list on the ASX
"In discussions with the Company for a corporate event" - Activities Report for the Quarter Ended 30 June 2019
IPO on the way it sounds like |
| CryptoData Vault (Sovreign Cash Tokens- SOVC) (http://cdv.io/) | Cyber Security - Hardware Wallet for Custody of Digital Assets | US $250,000 | (1) Secured 15.56% of all SOVC Tokens (6.69 Billion) (2) 50% interest in CryptoData Vault LLC that owns 30% of all tokens (3) 6% success fee for all tokens sold by CDV | SOVC listed on BTCEXA on 24/10/18 | CDV’s development team includes participation of four leading edge companies providing technologies via license agreements: Heuresy Labs LLC, Stealth Entry LLC, Xped Limited, and Proxidyne Inc. They are contributing expertise, technology, and
intellectual property developed with tens of millions of dollars invested to date.
SOVC listed on BTCEXA at a price of $0.00080 USD (5 July 2010)
FGF is in discussions with CDV to restructure the token agreement - Activities Report for the Quarter Ended 30 June 2019 |
| FutureEdge Capital (formerly FutureICO) | Compliance and Token Issuance Platform | AUD $285,000 | Following the subscription, the capital structure of FutureICO will be approximately DigitalX (34%), Blockchain Global Limited (34%), Big Start Pty Ltd (7%) and First Growth (25%). | 18/09/2018 | "The progress of the FutureICO platform has been slower than anticipated due to a rebrand to FutureEdge Capital and difficulties in obtaining banking services for the platform. DigitalX still expects
to launch this financial year, subject to clearing all regulatory and compliance hurdles and securing
banking services." - Digital X Appendix 4C - quarterly, 31/01/19
FGF is in discussions with Digital X and Blockchain Global regarding its investment in FutureICO - Activities Report for the Quarter Ended 30 June 2019 |
| LINCD (https://www.lincd.co/) | Blockchain as a Service Platform | Acquisition for approx AUD $1,000 plus a AUD $250,000 loan to be repayed by LINCD to FGF | 30,000,000 of HT8 shares plus (1) 20,055,334 HT8 options exercisable at 2.5c when LINCD ghenerates no less that $1.35M in revenue within 24 months of the issue date and (2) 20,000,000 options exercisable at 3.5c when LINCD ghenerates no less that $1.05M in revenue within 24 months of the issue date | 17/01/2019 | Harris Technology Group Limited (ASX:HT8) to acquire LINCD.HT8 will hold their EGM on 3 May 2019, with completion of the sale of LINCD to HT8 to occur on the EGM date.
"LINCD successful sale to Harris Technology (ASX:HT8) completed on 24 May2019. FGF received 30,000,000 HT8 shares plus performance based optionsas part of the sale proceeds".- Activities Report for the Quarter Ended 30 June 2019 |
| Globex (https://www.horizon-globex.com) | A technology company, with offices in Europe and USA, providing a software platform for issuing, managing and trading of regulated security tokens that are fully compliant and operate under financial services licence. | US $468,000 | FGA will charge a fee for the license. Confirmation required as to whether FGA will still continue to charge fees for creating the tokens including any advisory on smart contracts, listing fees and trading fees. As per the Quarterly Activities and Cashflow Report on 30/04/19 - "FGF and FGA are not involved in, and do not provide token advisory services for, the development, creation, issuing and listing of Tokens" | 13/02/2019 | Globex is developing software solutions for regulated security digital assets. "FGF is pleased to announce a further investment in Globex of $218,000 on an equity basis,following the successful acceleration in global commercialization of their products and solutions." - NASDAQ PRE-IPO INVESTMENT IN HELBIZ &EXPANSION CAPITAL FOR GLOBEX - 17 June 2019 |
| SQID Technologies (https://sqidpayments.com.au/) | Payments and e-Commerce | $500,000 with the payment held in trust and funds returned to FGF if
the listing does not proceed. | Performance Payments to First Growth Advisory 1) First Growth Advisory will receive performance payments of $550,000 if, for the financial year ending 30 June 2020, the transactions value processed revenue for SQID exceeds $150,000,000 in card transactions, as reflected in the SQID’s audited financial statements for
the year ending 30 June 2020; and (2) a further $550,000 if, for the financial year
ending 30 June 2021, the transactions value processed revenue for the SQID exceeds $250,000,000 in card transactions, as reflected in the SQID’s audited financial statements for
the year ending 30 June 2021.Performance Payments by First Growth Funds1) First Growth Funds will make performance payments of $350,000 if, for the financial year ending 30 June 2020, the transactions value processed revenue for the SQID exceeds $150,000,000 in card transactions, as reflected
in the SQID’s audited financial statements for the year ending 30 June 2020; and(2) a further $350,000 if, for the financial year
ending 30 June 2021, the transactions value processed revenue for the SQID exceeds $250,000,000 in card transactions, as reflected in the SQID’s audited financial statements for
the year ending 30 June 2021. If SQID reaches all its milestones, FGA will make $550,000 upfront fee + 2 x $550,000 = $1.65m revenue | 1/03/2019 | A further investment of $500,000 will be made on successful listing.
During the quarter, FGF completed the tranche 2 investment of $500,000 inSQID. Based on the current proposed initial market capitalization and uponcompletion of the expected listing in October, FGF expects the value of itsshareholding at listing to be approximately AUD$3.2M. The IPO preparationis progressing well with work underway for the prospectus.Operationally, SQID continues to perform well closing the quarter with 21%EBITDA margin and with $3.2M Cash at Bank, and no external debt - Activities Report for the Quarter Ended 30 June 2019 |
| Australian Nutrition & Sports Limited (https://answellness.com.au/) | Nutrition and supplementation | Short-term interest bearing loan of AUD $200,000 | Interest not specified in announcement | Quarterly Activities and Cashflow Report - 30/04/2019 | Loan expected to repaid with interest next quarter- Activities Report for the Quarter Ended 30 June 2019 |
| Large Cap & Small Cap Listed Investments |
| Investments | Industry | Investment Amount | Return | Announced | Status |
| Pearl Global (ASXG1) (https://pearlglobal.com.au/) | ASX Listed company involved in the process of tyre recycling | FGF invested $350K at pre-IPO and
successfully listed the company on the ASX | 2,225,000 shares at 16c and 729,166 options | 28/12/2016 | FGF continues to hold the stock. PG1's SP has been on a stead decline since listing on the ASX in early 2018. In March 2019, Pearl entered into a placement agreement with ROC Asset Management for $5M worth of full paid ordinary shares at 12.7c. See Appendix 4C & Quarterly Review - 30/04/2019 |
| Datable Technology Company (https://3tierlogic.com/) | Consumer digital and social media engagement, data mining, and loyalty solutions primarily in Canada and the United States | CAD $210,000 | "On 28 June 2018, FGF announced an investment of CAD$210,000 in Datable. Given the timetable for the placement was going to take much longer than initially agreed, FGF has elected to have its funds
returned ." - Quarterly Activities and Cashflow Report 26/07/18 | 28/06/2018 | Listed on Canadian Venture Exchange (CVE: DAC)
https://www.newswire.ca/news-releases/datable-signs-definitive-agreement-with-circadian-group-to-integrate-flexxinvest-with-the-cannabis-investor-to-launch-flexxinvest-882489714.htmlhttps://www.newswire.ca/news-releases/datable-signs-licensing-agreements-to-provide-platform3-for-two-leading-consumer-brands-840148337.html |
| Kleos (ASX:KSS) (https://kleos.space/investors/) | Geospatial Intelligence | AUD $250,000 | 5% Broker Fee on it's investment | Announced in Quarterly Activities and Cashflow Report - 26/07/2018 | FGF has taken some profits and continues to hold the stock - Quarterly Activities and Cashflow Report 30/04/2019
Kleos Space enters sales channel agreement with L3Harris - https://*********.com.au/kleos-space-enters-sales-channel-agreement-l3harris/ |
