Exchange for social trading
WinnerOption is valued at $5,000,000 after the deal which also includes a $276,000 cash payment.
At the end of October, EZTD Ltd, which is listed on OTC Markets, and is the company that owns binary options brokerage EZTrader, has acquired a stake in WinnerOption. The regulatory filing which was posted on the website of the Securities and Exchange Commission reveals that the CySEC regulated brokerage has acquired the asset in exchange for social gaming technology.
In addition to the technology, the parent company of EZTrader also paid $276,000 to purchase about 19.99 percent of the Israeli company WinnerOption. The latter then gained access to social gaming technology. The stake of EZTD in WinnerOption is estimated to have total value of about $1,000,000, therefore putting a price tag on the whole company at $5,000,000.
WinnerOption is a company that is majority owned by the CEO of EZTD, Shimon Citron. Finance Magnates reached out to the top executive at the company for a comment, however at the time of publication no official response has been provided.
The deal comes at a tough time for binary options brokerages. Several companies have laid off staff in recent months after regulatory pressures from the Cyprus Securities and Exchange Commission (CySEC) have increased materially. After a large portion of OptionRally’s staff was let go, last week Finance Magnates broke the news about another CySEC regulated brokerage OptionWeb cutting down operational costs.