Australia's REFFIND just bought into US blockchain leader Loyyal Corporation

SOURCE: Business Insider - Australia's REFFIND just bought into US blockchain leader Loyyal Corporation

Australian employee solutions startup REFFIND is buying into US blockchain leader for the global loyalty market, Loyyal Corporation.

The $US2.3 million investment will give REFFIND an equity stake in Loyyal of between 12.8% and 14.8% and board representation.

The deal also gives REFFIND exclusive performance-based licensing rights to Loyyal’s blockchain-based loyalty and rewards platform for select countries in the Asia Pacific region.

San Francisco-based Loyyal is the first to leverage the advantages of blockchain for the global loyalty and rewards industry.

Blockchain uses computers with advanced encryption to keep track of transactions, giving confidence to both buyers and sellers. Transactions of bitcoin are tracked using blockchain.

REFFIND, which has an app that manages employee referral programs for medium-to-large corporations, raised $8 million in its 2015 IPO on the ASX, issuing 40 million new shares at 20 cents each.

In early trade today, REFFIND shares were up 18% to $0.037.

But the shares reversed direction in later trade after diversified investment company Chapmans Limited announced it had become REFFIND’s biggest shareholder with 9.33%. At last report the shares were down 9% to $0.03. Chapmans Limited shares fell 16.6% to $0.010.

REFFIND says Loyyal has rapidly delivered a proven product that has attracted Fortune 500 leaders including Deloitte, Dubai Points, and several others that cannot currently be named for confidentiality reasons but include a large global airline and a large US financial services company.