VELTYCO AGM Approaching: A Crucial Moment for Minority Shareholders

Annual Meeting Scheduled on the Isle of Man

The upcoming Annual General Meeting (AGM) of VELTYCO GROUP PLC (“VELTYCO”), a publicly traded company, is set to take place on July 11, 2018, at 10:30 a.m. on the Isle of Man (link). While the formal agenda may appear routine, this is misleading given the significant organizational upheavals and challenges the company is currently navigating.

The agenda proposes standard items typical for periods of operational normalcy:

• Re-election of existing board members

• Appointment of auditors

• Approval of dividends declared by the directors

• Establishment of authorized capital

• Approval of the company’s annual report and financial statements for the year ending December 31, 2017

However, the absence of any mention of major recent developments is concerning, especially considering that both Uwe LENHOFF and Hans DAHLGREN, founders and principal shareholders, have exited the board. Melissa BLAU was named CEO, and Rainer LAUFFS, a known associate of LENHOFF, has joined the board. These significant shifts warrant open discussion during the AGM.

Concerns Around the 2017 Annual Report

A detailed review of the 2017 financial report (accessible online) raises several red flags. The ownership structures of key affiliates, notably ALTAIR ENTERTAINMENT N.V., linked to Uwe LENHOFF and Dmitriev YAROSLAW, remain undisclosed. Furthermore, multiple transactions with related parties are not sufficiently explained.

Key unanswered questions include:

• Who are the principal shareholders of VELTYCO, and what exact roles do they play in the business?

• What transpired with Option888 in 2017, once a core subsidiary under the former SHELTYCO?

• What impact has the discontinuation of binary options had on operations?

• What strategic direction is the company pursuing now?

These issues clearly demand attention and discussion at the AGM. Ahead of the meeting, further insights will be shared to help minority shareholders prepare and participate effectively. Individual shareholders can also request additional information upon inquiry.

Binary Options Fallout and Strategic Shift Toward Crypto

Previously, VELTYCO and Uwe LENHOFF were heavily engaged in the binary options market. In its 2016 listing prospectus, Option888 was identified as one of the company’s three key revenue drivers. A strategic partnership with TRADOLOGIC, a major binary options platform, was central to the business model.

However, binary options have since been banned in several jurisdictions and face EU-wide prohibition. Consequently, VELTYCO must redefine itself. During 2017, the company already encountered regulatory setbacks:

Regulatory Actions:

BaFin informed Capital Force Ltd, operating as Option888 and based in Apia, Samoa, on March 21, 2018, to halt its unlicensed financial services immediately.

Despite these significant interventions, VELTYCO offered only a brief statement claiming that future regulatory changes would not impact them. Notably, it failed to acknowledge the cease-and-desist orders that had already been served.

A key question remains: do former binary options investors have valid legal claims against VELTYCO? Further updates will be provided in an upcoming bulletin.

New Direction: Betting and Blockchain

VELTYCO appears to be shifting its core focus from marketing to operating as a branded sports betting provider under the Bet90 name. The acquisition of VARKASSO Ltd suggests a new emphasis on blockchain and cryptocurrency technologies.

With this pivot, VELTYCO positions itself as a rare publicly listed crypto company in Europe — a strategic move in an evolving market landscape once dominated by binary options.

For those seeking additional context, refer to articles by Simona WEINGLASS in The Times of Israel and related investigations.

Key Questions for the AGM

Below is a summary of pressing issues minority shareholders may wish to raise at the AGM:

• Why were major board changes not addressed in the agenda?

• What is the current ownership structure and strategic vision?

• How does VELTYCO plan to manage investor claims tied to binary options?

• What is the roadmap for blockchain integration?

Historical Context: The Reverse Takeover

VELTYCO’s current structure originated from a reverse takeover (RTO) in the summer of 2016, when VELOX3 merged with SHELTYCO, led by Uwe LENHOFF. Following this transaction, the company was renamed to VELTYCO.

Further background and analysis will be made available in subsequent updates.

If you have information relevant to the topics discussed or wish to submit a report, we maintain a secure and confidential whistleblower communication system. Prompt responses are guaranteed.