Routemaster Capital to acquire 20 per cent interest in ETP issuer Valour Structured Products

Routemaster Capital has entered into a binding Letter of Intent (LOI) to acquire a 20 per cent equity interest in Valour Structured Products (Valour) from certain shareholders of Valour.

The LOI contemplates that Routemaster and Valour will promptly negotiate and enter into a definitive agreement, together with such other documents that may be required in order to formalise and execute the terms of the acquisition as outlined in the LOI.

In consideration for the acquisition, Routemaster shall upon closing issue 21,000,000 common shares of the Company at a deemed price of USD0.66 per common share to the shareholders of Valour in exchange for 20 per cent of the common shares in the capital of Valour. Additional information in connection with the Acquisition will be provided by the Company in subsequent press releases.

The completion of the acquisition is subject to the receipt of all necessary approvals, including without limitation, negotiation and execution of a Definitive Agreement, shareholder and board approval of each of Valour and the Company, as necessary, completion of due diligence and the satisfaction of all conditions (unless waived in writing) to be set out in the Definitive Agreement.

Founded in 2018, Valour Structured Products is a company focused on creating exchange traded products (ETPs) in the digital asset space. Following the completion of a seed financing led by leading cryptocurrency investors in 2018, Valour has undertaken regulatory applications required and has received approval to be an issuer of digital asset products on leading European stock markets. Its first product launched was Bitcoin Zero, a fully hedged, passive investment product with bitcoin (BTC) as its underlying asset which charges zero management fees. 

Valour was Co-Founded by Johan Wattenstrom, Founder & Director of Nortide Capital AG. Wattenstrom was also the founder of XBT Provider, the first synthetic exchange traded product ever launched for BTC in 2015 which currently has USD2.9 billion in assets under management.

“Routemaster has led the charge as a first mover in the capital markets to create a diversified portfolio of decentralised financial holdings. Its interests are very much aligned with Valour`s and we are excited to be partnering with Routemaster. We look forward to utilising our regulatory and technology frameworks developed over the last 3 years to create meaningful Exchange Traded Products with underlying exposure to the DeFi ecosystem in partnership with Routemaster,” says Wattenstrom.

“Listed cryptocurrency exchange traded products have gone from managing under USD3 billion at the start of 2020 to over USD25 billion by the end of fiscal 2020, defining a material demand for regulated and listed products that give investors secure exposure to digital assets. We are excited about entering into an LOI to acquire a meaningful stake in Valour within Routemaster. Being the first company to launch a product with zero management fees in a landscape dominated by products with high management fees and subsequently creating yield through innovative lending tactics using DeFi protocols, Valour is exactly the type of company that Routemaster wants to invest in,” says Olivier Roussy Newton, Co-Founder of DeFi Holdings and an advisor to Routemaster.