Sunniva Inc. Agrees To Sell Its Okanagan Falls Property To CannaPharmaRx, Inc. for CAD $20 Million

June 12, 2019

Transaction is Subject to Financial Audit and Satisfaction of Other Conditions

VANCOUVER, BC / ACCESSWIRE / June 12, 2019 / Sunniva Inc. ("Sunniva") (SNN; SNNVF) and CannaPharmaRx, Inc. ("CannaPharmaRx") (OTC PINK: CPMD) are pleased to announce that they have entered into a share purchase agreement dated June 11, 2019, pursuant to which Sunniva has agreed to sell Sunniva Medical Inc. ("SMI") to CannaPharmaRx in an all-cash transaction for CAD $20 million less certain outstanding liabilities in SMI, including the mortgage on the property. Net proceeds payable to Sunniva are anticipated to be approximately CAD $15.5 million. Closing is anticipated to occur on or around July 5, 2019. Effectiveness of the agreement is subject to certain closing conditions including completion of a financial audit of SMI and receipt of sufficient financing by the Purchaser.

SMI owns the Sunniva Canada Campus, which includes construction assets for a planned 759,000 square foot greenhouse located on an approximately 114-acre property in Okanagan Falls, British Columbia.

"The sale of SMI is in line with our previously announced strategy of evaluating strategic alternatives for our operations in Canada," said Dr. Anthony Holler, CEO of Sunniva Inc. "Sunniva is focused on the advancement of our California assets and expanding our sales and distribution infrastructure in the state to support our continued growth in this rapidly evolving market. The disposition of the Okanagan Falls property is part of this strategy as we are directing our efforts and capital resources towards the completion of the Cathedral City facility and the ongoing development of our cannabis brands in California."

Dominic Colvin, the CEO of CannaPharmaRx stated, "We are excited to have reached an agreement to purchase this property from Sunniva. The acquisition and development of the Okanagan Falls property, combined with our Hanover, Ontario property and ownership interest in GN Ventures Ltd., sets the stage for the next step in CannaPharmaRx's growth strategy to become a significant player in the Canadian cannabis industry while continuing to strive to maximize shareholder value."

For more information on Sunniva please visit www.sunniva.com.

For more information on CannaPharmaRx please visit www.CannaPharmaRx.com.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Sunniva, Inc.

Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world's two largest cannabis markets - California and Canada. In Canada, Sunniva's wholly owned subsidiary NHS operates medical cannabis clinics that provide educational and clinical services to patients. In California, Sunniva is focused on creating sustainable premium cannabis brands supported by our large-scale, purpose-built cGMP designed greenhouse and extraction facilities. We offer a steadfast commitment to safety and quality assurance providing cannabis products free from pesticides, which positions Sunniva in California as a leading provider of safe, high quality, reproducible products at scale. Through production from Phase One of our strategically positioned 325,000 square foot high technology greenhouse which is nearing completion and our fully operational Extraction Facility in California, we are launching Sunniva branded products in various product categories and price points including flower, pre-rolls, vape cartridges and premium concentrates. Sunniva branded products will be showcased within our flagship dispensary to be located at the greenhouse and our in-house marketing and distribution team will strive to ensure the placement of Sunniva branded products at licensed dispensaries throughout the state. Sunniva's management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.

About CannaPharmaRx, Inc.

CannaPharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities located in Canada. CPMD has recently completed an initial acquisition of a 48,500 square foot cannabis grow facility presently under development and is currently in discussion with other companies regarding potential acquisitions or business combinations. CannaPharmaRx's business strategy is to become a leader in high quality and low-cost production of cannabis in Canada through the development, acquisition and enhancement of existing facilities. CannaPharmaRx is presently targeting acquisitions of companies in the final stages of obtaining cannabis licensee applications or those which are nearing revenue generation. CannaPharmaRx is committed to operating high quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis. CannaPharmaRx is in the process of completing an application to list its common stock on the Canadian Stock Exchange with initial trading anticipated to being during the second quarter of 2019.


Forward Looking Statements (with respect to Sunniva)

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Sunniva's operations and growth opportunities, Sunniva's plans to launch Sunniva-branded products in various product categories including high quality distillate, premium concentrates, vape cartridges, flower, pre-rolls, and beverages, which will be showcased within Sunniva's flagship dispensary, the placement of Sunniva-branded products at licensed dispensaries throughout California, and statements regarding the anticipated closing date of the sale of SMI, the closing conditions of such sale, and the net proceeds to be obtained therefrom are "forward-looking statements." Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the risk factors included in the Sunniva's continuous disclosure documents available on www.sedar.com. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although Sunniva has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Sunniva assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.

Safe Harbor Statement (with respect to CannaPharmaRx)

This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by CannaPharmaRx with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, CannaPharmaRx may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.

Company Contacts:
Sunniva Inc.
Dr. Anthony Holler
Chairman and Chief Executive Officer
Phone: (866) 786-6482
Sunniva Investor Contact:
Phil Carlson / Erika Kay
KCSA Strategic Communications
Phone: (212) 896-1233
Email: pcarlson@kcsa.com / ekay@kcsa.com
Sunniva Media Contact:
Katelyn Tumino / Tony Forde
KCSA Strategic Communications
Phone: (212) 896-1252
Email: ktumino@kcsa.com / tforde@kcsa.com

SOURCE: Cannapharmarx, Inc.

View source version on accesswire.com:
https://www.accesswire.com/548573/Sunniva-Inc-Agrees-To-Sell-Its-Okanagan-Falls-Property-To-CannaPharmaRx-Inc-for-CAD-20-Million

CannapharmaRx, Inc., Strengthens Management Team

CALGARY, AB / ACCESSWIRE / May 14, 2019 / CannaPharmaRx, Inc. (OTC PINK: CPMD) CannapharmaRx, Inc. (''CPMD'' or the ''Company'') is pleased to announce the strengthening of its management team via the recent hires of John Cassels as Chief Financial Officer and Andrew Steedman as Executive Vice President of Business Development. Additionally, the Board of Directors was expanded with the addition of Richard Orman and Marc Branson. As part of the management changes, Gary Herick resigned as Chief Financial Officer and Director of the Company.

Bios--

John Cassels, C.A., was appointed Chief Financial Officer of the Company in April 2019. Mr. Cassels was previously the Chief Financial Officer of GN Ventures, Ltd. Prior to GN Ventures, Mr. Cassels serves as Chief Financial Officer and Vice President of Finance at Wescan Energy Corp. since May 30, 2013. Mr. Cassels served as Secretary of Northern Spirit Resources Inc. (alternate Name: Cascade Resources Inc.). He served as the Interim Chief Financial Officer at Northern Spirit Resources Inc. (alternate Name: Cascade Resources Inc.) since July 31, 2015 until September 1, 2015 and served as its Vice President of Finance. Mr. Cassels has over 35 years of experience in the Canadian natural gas and oil industry as the President and Chief Executive Officer of Paris Energy Inc., Chief Financial Officer and Vice President of Finance at Redwood Energy Ltd., Landover Energy Inc., as the Chief Executive Officer of Crown Point Energy Inc. and was a Partner of Purdy & Partners Inc. and served as its Chief Financial Officer. Mr. Cassels has served as a Director of nine small natural gas and oil companies. Mr. Cassels is a Chartered Accountant in Canada and holds a B.A. from Bishop's University in Sherbrooke, Quebec.

Andrew Steedman, was appointed Executive Vice President of Business Development of the Company in April 2019. Previously, Mr. Steedman served as an Advisor to GN Ventures, Ltd., Vice President of NXT Energy Solutions, Inc., President of Wireless Networks, Inc. and worked in Business Development for Nortel Networks, Inc. Mr. Steedman received a Bachelor of Science Degree in Electrical Engineering and a MBA both from the University of Calgary.

Marc Branson, was appointed as a director of our Company in April 2019. In addition, since January 2018 has the owner and co-founder of Titan Technologies, Inc., Vancouver, British Columbia, Canada, a development stage privately held technology company focused on AI powered block chain solutions for businesses. Since October 2016 he has also been the President and director of Catalina Gold Corp., a publicly traded Canadian company. Previously, from October 2013 through June 2015 he was President and a director of Lightning Ventures Inc., a publicly held manufacturer and distributor of specialty oil and gas products. Since 2007 he has also been President and a director of CapWest Investments., a private investment corporation that focuses on development stage companies. He received a degree in International Business from Open Learning University in 2000 and received a Business Management certificate from Capilano College in 1997.

Richard D. Orman, was appointed as a director of our Company in April 2019. In addition, he is currently the President of PLM Consultants, LTD, Calgary, Alberta, Canada, a privately held business consulting company, a position he has held since 1982. In 1986 Mr. Orman was elected to the Legislative Assembly of Alberta and was appointed to the provincial cabinet as Minister of Career Development and Employment. In 1988 he was appointed Minister of Labour. He was re-elected in 1989 and was then appointed Minster of Energy. He has over 35 years of experience with publicly traded companies in Canada, including Chairman and CEO of Kappa Energy Company, Inc., from 1994 to 2001, a director of Vanguard Oil Corp. from 1998 through 2001, and Executive Vice Chairman of Exceed Energy Company, Inc. from 2003 through 2005, Each of the aforesaid companies had their securities traded on the Toronto Stock Exchange. In addition, he was Vice Chairman of Novatel Inc., a company traded on NASDAQ from 2004 through 2007 and from 2007 through 2011 he was the lead director of Daylight Energy Ltd, also traded on the TSX. From 2015 through February 2019 he was a consultant and senior counsel at Canadian Strategy Group, a government relations firm located in Edmonton, Alberta. In 2012 he was elected to the Board of Directors and currently services as Chairman of the Board of Wescan Energy Corp. a company traded on the TSX. In 2016 he was elected and currently serves an independent non-executive director of Persta Resources, Inc., a company traded on the Hong Kong Stock Exchange. Mr. Orman received a Bachelor of Arts degree with honors from Eastern Washington University in 1971.

About CannaPharmaRx, Inc.

CannaPharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities located in Canada. CPMD has recently completed an initial acquisition of a 48,500 square foot cannabis grow facility presently under development and is currently in discussion with other companies regarding potential acquisitions or business combinations. CannaPharmaRx's business strategy is to become a leader in high quality and low-cost production of cannabis in Canada through the development, acquisition and enhancement of existing facilities. CannaPharmaRx is presently targeting acquisitions of companies in the final stages of obtaining cannabis licensee applications or those which are nearing revenue generation. CannaPharmaRx is committed to operating high quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis. CannaPharmaRx is in the process of completing an application to list its common stock on the Canadian Stock Exchange with initial trading anticipated to being during the second quarter of 2019.

Safe Harbor Statement
This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, CannaPharmaRx, Inc. may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.

Contact Information:

Attention info@cannapharmarx.com
Investor Relations
Telephone 949.652.6838

SOURCE: CannaPharmaRx, Inc.

Venture Capital China Going Bust?

China’s Venture Capital Boom Shows Signs of Turning Into a Bust

From Bloomberg by Peter Elstrom July 9, 2019


China went through a five-year surge in venture capital investment that fostered a new generation of startups from ride-hailing giant Didi Chuxing to TikTok-parent Bytedance Ltd. Now the boom may be over.

Venture deals in China plummeted in the second quarter as investors pulled back amid unpredictable trade talks and growing concerns about startup valuations. The value of investments in the country tumbled 77% to $9.4 billion in the second quarter from a year earlier, while the number of deals roughly halved to 692, according to the market research firm Preqin.

The second quarter of 2018 marked the peak for China venture deals with a total of $41.3 billion invested. That included a $14 billion round for digital payments giant Ant Financial, $3 billion for e-commerce upstart Pinduoduo Inc. and $1.9 billion for truck-sharing service Manbang Group (known also as Full Truck Alliance Group). By comparison, the largest venture deal in the second quarter of 2019 was a $1 billion investment in JD Health, the health care affiliate of e-commerce provider JD.com Inc.

China has never been through a widespread bust like the U.S. did after the dotcom boom, in part because the country’s venture market is so new. Years of steady growth in tech investments resulted in predictable -- and enormous -- profits. Whether the current downturn becomes a painful crash depends in large part on how VCs, entrepreneurs and regulators navigate terrain they’ve never seen before.

“We’re seeing real stress in the system for the first time,” said Gary Rieschel, a founding partner at Qiming Venture Partners who has worked in China and the U.S. “We have never seen a downturn in the China market. For 20 years, it’s been pretty much up and to the right.”

Venture deals in the U.S. rose about 15% in the second quarter of 2019 to $27.7 billion, while Europe investments climbed 32% to $7.9 billion, according to Preqin.

“We haven’t seen the same slowdown in other markets,” said Chris Elvin, head of private equity at Preqin. “It’s always tricky with quarterly numbers though. A quarter doesn’t necessarily mean a trend.”

China’s venture boom began in 2014 when Alibaba Group Holding Ltd. went public in the largest-ever initial public offering, making clear to investors the potential riches in the world’s most populous country. Venture deals tripled that year to more than $17 billion and proceeded to rise every year through 2018 when the total topped $105 billion, almost as much as in the U.S.

Along the way, firms like Qiming, Sequoia China, Tiger Global Management and SoftBank Group Corp. fostered some of the most valuable startups in the world. Bytedance, the force behind short-video app TikTok and other addictive services, sports a valuation of $75 billion, the highest anywhere according to CB Insights. Didi, the ride-hailing service that ousted Uber Technologies Inc. from China, was last valued at $56 billion, the second highest.

But the rise of China’s tech industry put it squarely in the crossfire of the trade war. The Trump administration has accused China of stealing intellectual property and unfairly subsidizing companies in strategic fields, including semiconductors, artificial intelligence and autonomous driving. In May, the U.S. blacklisted Huawei Technologies Co., preventing the telecom giant from buying American components, and is considering doing the same to a swath of startups.

The trade war gives investors one more reason for caution. Valuations had already grown vertiginous. High-profile startups such as smartphone-maker Xiaomi Corp. and delivery giant Meituan Dianping saw their stocks tumble after they went public, reinforcing the impression that private-market valuations had gotten out of hand.

So-called sharing economy startups have also tested the patience of their investors. Companies like Didi, Meituan and bike-sharing provider Ofo blitzed the market with heavy subsidies to grab market share from rivals, making up for their losses with venture money. Now there’s skepticism that many such companies will ever turn a profit.

“You’re really reaching the end of the shared economy -- this idea of let’s give away services for free and make up for it in volume,” Rieschel said. “Some companies -- Didi is the classic case -- are just not showing any ability to become profitable.”

A Didi representative didn’t respond to a message and email seeking comment.

Valuations haven’t declined yet in China though. The country’s startups have resisted so-called down rounds, when they raise money at lower valuations than an earlier round. “China entrepreneurs, more than any on the planet, will do unnatural things to avoid a down round,” Rieschel said.

Meanwhile, venture firms are pivoting to alternative business models, like enterprise software. Such startups are not only less capital intensive, they are at a stage of development where they require less money.

This also may simply be a time when venture investors opt for caution. Given the volatile negotiations between Donald Trump and Xi Jinping, it’s not clear what kind of opportunities China’s tech startups will face in the years ahead or how capital markets will treat the next big IPO filing.

“It won’t cost you that much to sit on your hands for a few months,” Rieschel said.

Source: https://www.bloomberg.com/news/articles/2019-07-09/china-s-venture-capital-boom-shows-signs-of-turning-into-a-bust

CannaPharmaRx Announces the Acquisition of a Minority Interest in GN Ventures

CannaPharmaRx Announces the Acquisition of a Minority Interest in GN Ventures, a Canadian Cannabis Producer, and the Appointment of Dominic Colvin as CEO and Chairman of the Board

Company Continues to acquire Cannabis Grow Capacity in Canada

IRVINE, Calif., Feb 28, 2019 (GLOBE NEWSWIRE via COMTEX) -- IRVINE, Calif., Feb. 28, 2019 (GLOBE NEWSWIRE) -- CannaPharmaRx, Inc. (otc pink sheets:"CPMD") announced today it has completed the acquisition of a minority interest in GN Ventures, LTD., ("GNC"), an Alberta corporation, engaged in the development of Canadian cannabis cultivation facilities. Under the terms of the stock purchase agreement the Company acquired approximately eighteen (18%) percent of the issued and outstanding securities of GNC for total consideration of 7,998,963 shares of CPMD common stock. Additionally, the Company acquired warrants exercisable to purchase an additional 2,500,000 shares of GN at an exercise price of CAD$1.00 per share. 

GNC owns a 60,000 square foot cannabis cultivation and grow facility located on 38 acres in Stevensville, Ontario, Canada. Once completed, GNC estimates annual total production capacity from the Stevensville facility of up to12,500 kilograms of cannabis. When completed, GN believes it will begin cultivation activities and generate its initial harvest by the middle of 2019. Additionally, the plan is to increase cannabis production by building additional cannabis cultivation facilities on the excess land presently owned adjacent to the existing Stevensville facility, provided that additional funding for expansion can be obtained on commercially reasonable terms.

CPMD also appointed Dominic Colvin as Chief Executive Officer, President and Chairman of the Board. Mr. Colvin had previously been CEO, President and a director of CPMD until he resigned to avoid any appearance of conflicts of interest. Mr. Colvin stated, "I am very excited for the growth opportunities at CannapharmaRx. The Company's objective is to become the premier holder of cannabis producing facilities in Canada. With the previously acquired Hanover property and minority ownership of GN Ventures, we are well on our way to achieving the production and ownership goals of the Company. We intend to acquire additional shares of GN along with other Canadian licensed producers and develop cannabis cultivation facilities which produce high quality cannabis at the lowest operational costs in the industry. Canada is still the place to be for cannabis production and we see a huge demand for years to come from the product we produce."

About CannaPharmaRx, Inc.

CannaPharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities located in Canada. CPMD has recently completed an initial acquisition of a 48,500 square foot cannabis grow facility presently under development and is currently in discussion with other companies regarding potential acquisitions or business combinations. CannaPharmaRx's business strategy is to become a leader in high quality and low-cost production of cannabis in Canada through the development, acquisition and enhancement of existing facilities. CannaPharmaRx is presently targeting acquisitions of companies in the final stages of obtaining cannabis licensee applications or those which are nearing revenue generation. CannaPharmaRx is committed to operating high quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis. CannaPharmaRx is in the process of completing an application to list its common stock on the Canadian Stock Exchange with initial trading anticipated to being during the second quarter of 2019.

Safe Harbor Statement

This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, CannaPharmaRx, Inc. may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.

Contact Information:

Attention info@cannapharmarx.com 

Telephone 949.652.6838

Venture Capital Summit Offers Innovative Ideas and Money

At Global Venture Capital Summit 2018, talks revolve around innovative ideas and the money needed to fund these ideas

From Dailyhunt.in Dec. 8, 2018

Speaking at the Global Venture Capital Summit 2018 Union Minister of Commerce and Industries Suresh Prabhu said the country will need more ideas and more capital to multiply its wealth.

The Global Venture Capital Summit 2018 kicked off in Goa on December 7. An initiative of the Departmental of Industrial Policy & Promotion (DIPP) and the Government of Goa, in partnership with the International Finance Corporation and Indian Private Equity & Venture Capital Association, the event brought together international fund managers, startups, government officials and other key stakeholders from the startup ecosystem.
Present on the occasion were Union Minister of Commerce and Industries Suresh Prabhu and Goa Minister of Revenue, IT, Labour & Employment, Rohan Khaunte.

The Summit focused on the opportunities for investments in the Indian startup ecosystem, and showcased the diverse market opportunities and technology innovations available in the country, with discussions held around the current and future regulatory changes .

Ease of doing business increases

The context of the Summit was set by Ramesh Abhishek, Secretary, DIPP. "This event will help us discuss the opportunities available and the challenges of the Indian ecosystem," he said.

He spoke about the ease of doing business in the Indian ecosystem - including at the district level, faster environmental clearances (from 600 days to 140 days) and abolition of inter-state check posts after the introduction of Goods and Service Tax (GST), among others. "In terms of ease of doing business globally, India was ranked 133 in 2009, now we are at Rank 77," he said.

Since the introduction of Startup India in January 2016, 14,479 startups have been recognised with the Government of India. "A corpus of over Rs 100 billion is to be provided by March 2025," the DIPP Secretary said.

The Union Government has undertaken steps like the introduction of transformative measures - GST, IBC and Commercial Courts Acts, and introduction of third party and self-certification measures.

Under the Startup India programme, the Government also started a virtual incubation platform for startups to register themselves. "Before the launch of Startup India, only four Indian states adopted the startup policies. Since January 2016, 16 states have launched their own startup policies," he added.

Goa as a preferred startup destination

Addressing the audience, Goa minister Rohan Khaunte said that the state is set to become a desirable startup destination by welcoming more investments and creating more job opportunities.

He compared Goa's cultural richness with the culture of startups. "Startups have the culture to innovate, the culture of risk-taking and the culture of treating every failure as a stepping stone to success," he said. Having said that, he added, "Everyone has ideas but only few can execute these ideas."

Khaunte also spoke about how buoyant the mood in the Indian startup ecosystem was, with roughly $11 billion being invested in the country in the last year and Flipkart making a huge exit.

"The Indian startup ecosystem is set to break all records. We look at Goa being the startup capital and capital of startup investment," he concluded.

The relationship between ideas and money

Setting a context to the premise of the Summit - attracting investments -- Suresh Prabhu said, "When you talk about a startup, you are talking about a new idea, and money and ideas need each other."

He said that India will be adding another $10 trillion in the coming 15 to 16 years, and would need more ideas for wealth to multiply. In this context, the Union Minister announced that India was prepared for this level of growth and that one of the key steps in this direction was adding another 100 airports in the next decade.

Besides this, he also said that startups are the new job creators and they will greatly socially benefit the Indian society.

Prabhu announced that the Global Venture Capital Summit will be held in Goa each year on the first Friday of December.

Expert panels discuss the India story

The Summit saw a couple of expert panels speaking on topics ranging from 'Opportunity to build India as a $10 trillion economy by 2030', to discussions on 'Disrupting traditional models' and 'Innovation in India'.

Commenting on the latest technology one of the panellists, Dr Shefali Juneja, Joint Secretary of the Ministry of Civil Aviation, said, "Drones are here to stay and they will be feeding the Indian startups."

Other speakers included eminent names such as Priya Rajan of Silicon Valley Bank, investors Alok Goyal (Stellaris Venture Partners), Will Poole (Capria Investments), TCM Sundaram (IDG Ventures), Rahul Khanna (Trifecta Capital), Shweta Bhatia (Eight Road Ventures), Karthik Reddy (Blume Ventures) and Vikram Gupta (IvyCap Ventures) among many others.

Startup founders like Yashish Dhaniya (PolicyBazaar), Abhinav Jain (Shop 101), Mayank Kumar (UpGrad), Shradul Seth (Agrostar) and Venkatesh Bhat (Blackbuck) were also part of these panel discussions.

The Global Venture Capital Summit also saw the release of a report on Mobilizing Global Capital for Innovation. The report talks about the Indian Venture Capital landscape, the startup ecosystem in India and the regulatory framework in the country.

VCs at the summit said that they were interested in investing in the agritech, edutech, fintech and healthtech sectors in India.

YourStory is the digital media partner for the Global Venture Capital Summit 2018. We will be sharing live tweets and posts from the event as they unfold. Watch this space for more of the latest news and takeaways from the summit.

Source: https://m.dailyhunt.in/news/india/english/yourstory-epaper-yourstory/at+global+venture+capital+summit+2018+talks+revolve+around+innovative+ideas+and+the+money+needed+to+fund+these+ideas-newsid-103336936

Federal Court Rules Case in Favor of Crypto ICO Against SEC

From CCN.com Dec. 3, 2018

Last week, the U.S. federal court ruled a case between the U.S. Securities and Exchange Commission (SEC) and a crypto initial coin offering (ICO) project called Blockvest in favor of the ICO project.

Marco Santori, the president and chief legal officer at Blockchain, said:

“The SEC brought an enforcement action against a company called Blockvest, alleging that Blockvest’s ICO was a securities offering. SEC asked the court for a preliminary injunction (an order freezing Blockvest’s assets, among other things) so it called a hearing on the evidence.”

The SEC failed to justify that the ICO in question was actually a security and the court refused to acknowledge the token as a security solely based on the distribution method of the asset.

Precedent For the Market
The unexpected decision of the federal court is not necessarily a loss for the SEC nor a huge victory for the cryptocurrency sector. As SEC chairman Jay Clayton said, most ICOs that investors in the market talk about are mostly considered securities under existing U.S. regulations.

But, the outcome of the case established a precedent for the market and with some technicalities, some ICOs could potentially challenge the SEC in court and win a case if supported by sufficient evidence.

The SEC and investors in ICOs could also become more cautious in filing a lawsuit against an ICO project, as the court requires the plaintiff to explicitly describe the nature of the asset as a security, unaffected by the method in which the asset was introduced to the market.

“According to the court, in the ICO context there must be a ‘risk of financial loss’. This supports the proposition that something like an airdrop, by itself, cannot be a securities offering, even if the airdropped tokens are pre-functional. Admittedly rare today but possible,” Santori said.

The Blockchain executive, who operates the most widely utilized cryptocurrency wallet platform in the world, added that the federal court “went out of its way” to reject the argument from the SEC that the mere act of distributing an asset through an airdrop or a token sale is a security as it doubled down on its stance that a token offering in itself is not a security.

An important element of the case was the requirement of the court to the SEC to prove that an investor bought the token because the investor was offered the security directly by the issuer. For instance, if an investor in an ICO is to file a lawsuit against the project, the investor will need to prove, somehow, that the investor invested in the token sale directly by looking at the website, whitepaper, or some other information offered by the issuer.

More Complex to Sue an ICO
The recent federal court ruling created a more complex environment for both the SEC and investors in ICOs to challenge the issuer of a token and to claim that a token is a security based on U.S. regulations.

Santori added that the precedent established by the Blockvest case has raised the bar for any plaintiff seeking to sue ICO issuers:

“As my colleagues in twitter law have stated, SEC pretty much got what it wanted with regard to Blockvest. No bloody noses here. The precedent, though, is lasting, and definitely raises the bar for any plaintiff – public or private – seeking to sue ICO issuers. It’s going to be more complex, I think, than any of us realized. And a lot gets lost in the world of ICOs, like remembering.”

Source: https://www.ccn.com/monumental-federal-court-rules-case-in-favor-of-crypto-ico-against-sec/

Blockchain Technology to Reach $3 Trillion by 2030

PwC Report: Blockchain Technology to Reach $3 Trillion by 2030

From CryptoSlate.com by Shaurya Malwa August 28, 2018

PwC, a “Big Four” auditing firm, recently published research that found 84 percent of companies have either a “live” blockchain project or experiment underway.

China Primed to Lead Blockchain Innovation

The company surveyed over 600 executives from 15 countries–including the U.S., India, China, Africa and Sweden–with only 14 percent of respondents having “no involvement in blockchain technology.” (The sum does not equal 100 percent due to rounding.)

The study also found that 30 percent of respondents believe China is set to dominate blockchain development over the next five years, with only 18 percent backing the U.S.

Meanwhile, four out of five executives confirmed blockchain projects were underway at their organizations, with 15 percent of respondents having “live” networks up and running. Thirty-two percent of the firms are still developing their blockchain products, while 10 percent are running pilot models and 7 percent have “paused” research and development.

PwC cited a Gartner report forecasting a $3 trillion market value of blockchain business by 2030, with the survey recognizing ICOs and asset tokenization as a significant feature of the technology’s future.

Trust: A Compelling Concern

A vast majority of the respondents cited regulatory uncertainty and a lack of trust as the “biggest barriers” to mainstream technology adoption, with 45 percent terming it the most significant hurdle to adoption.

Steve Davies, a blockchain consultant at PwC, stated:

“Businesses tell us that they don’t want to be left behind by blockchain, even if at this early stage of its development, concerns on trust and regulation remain.”

Davies added that blockchain technology is “trustless” in nature, but companies “confront trust at nearly every turn.”

Davies noted blockchain technology presents a considerable ecosystem for companies and is unlike an “IT project,” meaning it involves put down rules, robust regulations, globally-accepted standards and perennial flexibility toward regulatory decisions.

Blockchain Frameworks Defined

Survey results are understandably dominated by finance and fintech service companies, with 46 percent respondents calling it the “leading” sector in the coming years. Other identified disruptors were healthcare, industrial manufacturing and energy.

The study also identified four “key areas” for startups and large organizations looking to integrate a blockchain-based framework into their business. These include making the business case, building an ecosystem, concentrating on user-centric design and navigating regulatory uncertainty.

According to Davies:

“A well-designed blockchain doesn’t just cut out intermediaries, it reduces costs and increases speed, reach, transparency and traceability for many business processes. The benefits can be compelling if organizations understand what their endgame is in using the technology, and match that to their design.”

Source: https://cryptoslate.com/pwc-report-blockchain-technology-to-reach-3-trillion-by-2030/