VELTYCO AGM: Tracing the Reverse Takeover and the Early Days

Background and Sources

The following information is primarily derived from publicly accessible documents, including filings with the London Stock Exchange. This summary is intended to consolidate information that any analyst or shareholder could independently access and review.

The Birth of VELTYCO GROUP PLC

VELTYCO GROUP PLC originated from a Reverse Takeover (RTO) transaction in 2016. At that time, VELOX3, already listed on AIM in London, acquired SHELTYCO ENTERPRISES GROUP LIMITED (“SHELTYCO”) from Uwe LENHOFF and his associated companies. The deal valued SHELTYCO at approximately GBP 10.3 million, with VELOX3 issuing around 43.7 million new shares as consideration.

Following the transaction:

• The LENHOFF Group, specifically LENSING Management Services Limited based in the British Virgin Islands, became the majority shareholder.

• VELOX3 was subsequently renamed VELTYCO GROUP PLC (“VELTYCO”).

• As per the audited filings, the LENHOFF Group held approximately 85% of VELTYCO’s shares.

• Further details about the LENHOFF Group’s structure can be found under paragraph 10, INFORMATION ON THE CONCERT PARTY, in the official RTO document.

VELOX3’s Precarious Position

Before the RTO, VELOX3 was reportedly on the brink of insolvency. Its portfolio included several holdings that were either insolvent or teetering on collapse. The acquisition of SHELTYCO effectively served as VELOX3’s lifeline.

Initial Business Divisions Post-RTO

After the RTO, the newly formed VELTYCO Group organized its activities into three main divisions:

According to the RTO prospectus, VELTYCO’s leadership at the time expressed strong confidence in the binary options sector:

“The Existing Directors and the Proposed Directors believe that binary options is a growing area of financial trading products and expect that this product will continue to show growth in markets such as Asia, Canada, Australia, and the UK. In the Existing Directors and the Proposed Directors’ experience, the relatively high customer deposits, of approximately €1,000 – €1,500 per customer, make binary options an attractive product compared to other gaming and gambling activities.”
— VELOX3 RTO Prospectus

The Binary Options Fallout

Despite early optimism, regulatory landscapes shifted rapidly:

• By 2017, many countries had either heavily regulated or outright banned binary options.

• In 2018, the European Union officially prohibited the sale of binary options to retail investors.

• Even in 2016, the global community was increasingly aware of the high fraud risks associated with binary options.

The Quiet Disappearance

By the end of 2017, all three strategic pillars — Betsafe, LottoPalace, and Option888 — had vanished from VELTYCO’s operations without any detailed explanation. The 2017 Annual Report made no mention of these once-core businesses.

Thus, the VELTYCO of 2016 had fundamentally ceased to exist by 2018, replaced by an entity whose trajectory would soon be marked by even more dramatic changes.

In future reports, we will dive deeper into the transition from the old VELTYCO to the troubled VELTYCO of today.
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