$69 postpage LB

REFFIND Envisions Substantial Value Addition for Investors through Strategy to Bid for Loyyal Assets

  • July 28, 2020 04:14 PM AEST
  • Team Kalkine
REFFIND Envisions Substantial Value Addition for Investors through Strategy to Bid for Loyyal Assets


  • REFFIND has proposed a strategy to monetise its investment in Loyyal and maximise shareholder value.
  • As a result of the impacts being felt of COVID-19 and global travel restrictions, Loyyal’s clients such as Emirates have been significantly impacted.
  • Negotiations around RFN’s discussion to recapitalise Loyyal and take up to a 55% controlling stake in Loyyal were unsuccessful.
  • Loyyal has filed for bankruptcy protection, and RFN, along with a consortium, intends to bid for the assets of Loyyal to operate the business.
Gold MTF non-AMP

SaaS solutions company primarily focused on revolutionising employee peer recognition, REFFIND Limited (ASX:RFN) has provided an update on its investment in Loyyal Corporation, allowing the Company to resell services of the Loyyal platform across the Asia-Pacific region. RFN has proposed a strategy to maximise shareholder value through monetisation of its investment in Loyyal.

The update follows a mid-July RFN announcement regarding the filing of a claim in the United States District Court on 24 June 2020 for recovery of the monies owing under the convertible note with Loyyal in the amount of USD 883,969.

Source: RFN ASX Announcements

More about Loyyal at: Tale of REFFIND's Offering, Loyyal - Reinventing Loyalty Through Blockchain

Through its assessment, RFN identified that airlines, hotels and financial services are amongst the few segments that constitute for major market opportunities for Loyyal. The assessment further highlighted significant impacts arising from COVID-19 and global travel restrictions that came into place during March 2020. As a result of these impacts, and from a risk mitigation standpoint, RFN sought repayment of its Note rather than convert to equity.

What Are the Note and Equity Conversion All About?

Around two and a half years ago during January 2018, RFN invested a total of USD2,300,000 into Loyyal, on the following terms:

  • USD1,500,000 worth of Series A-3 Preferred Stock giving the Company 4,670,714 shares with an immediate equity interest of 9.38% (at a USD16,000,000 valuation) in Loyyal on a fully diluted basis; and
  • USD800,000 worth of 2-year convertible promissory notes in Loyyal

Further equity interest of 5.33% (at a USD15,000,000 valuation) to be obtained through the conversion of the convertible promissory notes. This interest would combine for a total fully diluted equity holding of 14.71% in Loyyal.

Interesting Read: REFFIND to Increase Focus on Commercial Opportunities for WooBoard, Agreement with InterBIO Discontinued

Loyyal’s Clients Impacted By COVID-19 Restrictions

The distinctive circumstances of COVID-19 and travel restrictions have taken a severe toll on the travel business across the globe. This means that Loyyal’s clients, especially Emirates, have been significantly impacted due to the ongoing uncertainty surrounding COVID-19.

These unwanted circumstances have put Loyyal in a challenging financial position and its discussions with REFFIND to repay the Note at this time. REFFIND has been working in concurrence with a consortium to recapitalise Loyyal and take up to a 55% controlling stake in Loyyal, seeking the opportunity and for the benefit of its shareholders.

Did you read: REFFIND Leveraging WooBoard Platform to Seize Opportunities Amid COVID-19

However, these negotiations have concluded on an unsuccessful note, and Loyyal has filed for bankruptcy protection.

REFFIND to Bid for Assets of Loyyal

REFFIND, along with the consortium, looks forward to the opportunity to bid for the assets of Loyyal, and shall continue to operate the business, if the bid turns out to be successful. Moreover, this is subject to funding, and the parties (RFN and the consortium) plan to await trading conditions to improve for putting Loyyal on a path to IPO at a suitable time.

This may require RFN to conduct further capital raising, and the Company shall consider when additional capital raising is needed.

Previous Update: REFFIND Receives Commitments for ~$880,000, Proceeds to Aid Product Development and Accelerate Sales Growth

If its strategy concerning Loyyal is successfully executed, RFN is optimistic of making a significant value addition for its shareholders.

RFN stock moved upward by 50% to close the day’s trade at a price of AU$ 0.003 on 28 July 2020.



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK