FinTech firm Mode Global, which offers cashback in the form of Bitcoin cryptocurrency, has collapsed following a strange clarification of its relationship with several UK retailers.
Shares rose on Thursday after more than 40 retailers announced they would be participating in a cashback scheme naming Ocado, Homebase and Boots.
However, the stock fell 12.5 percent or 5p to 35p after a humiliating rise, with some brands saying it had “withdrawn” their relationship.
Fintech ?: Fintech Firm Mode delivers cashback in the form of Global Bitcoin Cryptocurrency
The admission came after the three named retailers told the Times that they were not involved. Despite this, the company justified its previous release, reiterating that more than 40 online retailers have embraced it in their affiliate programs.
These developments are embarrassing for President and serial entrepreneur Jonathan Rowland, who founded the firm in 2019 and is its largest shareholder with a 21 per cent stake. JellyWorks listed their Internet investment business in 1999, before the dotcom bubble burst, leading to a decline in internet-based businesses.
In 2011, he launched JellyBook, another investment company focused on social media, but was liquidated two years later after failing to get any deals. The 46-year-old is the son of millionaire David Roland, a Conservative Party donor and a friend of the Duke of York, Prince Andrew. The elder Roland, 76, was previously thought to have helped bankroll Duke’s lavish lifestyle, and reports this week say the family paid off the £ 1.5 million debt Andrew took while he was a royal member.
The FTSE 100 dropped 0.5 points or 32.39 points to 7223.57, while the FTSE 250 fell 0.4p, or 82.13 points, to 23,492.49.
The Blue-Chip Index weighed on fresh lockdowns in Europe, triggering travel and leisure stocks. British Airways owner IAG slipped 3.8 per cent, or 5.82p, to 148.5p, as hotel tycoon Whitbread fell 2.3 per cent or 70p to 3013p and rival Intercontinental Hotels lost 1.5 per cent or 75p to 4905.
Mid-cap travel firms were also hit, with EasyJet declining 2.7 per cent, or 15.4p, to 555.2p, while Wizz Air declined 4.6 or 203p, to 4173p, while the Tui fell 2.5 per cent or 5.3p, 209.4p. And Ryanair fell 2 per cent to € 15.96.
In the leisure sector, Cineworld fell 1.8 per cent or 1.1p, 61.2p, Wagamama owner restaurant group fell 2.6 per cent or 2.3p, 86p and Public Weatherspoons fell 1.6 per cent or 14.5p, 920p.
Oil fell 3.2 per cent, or 53.6p, to 1610.2p, but BP fell 2.9 per cent or 9.9p to 326.55p because crude prices fell below $ 79 per barrel.
The safety equipment group gained 1.3 per cent or 41p to Halma 3165p, acquiring Infinite Leap, a healthcare consulting firm in the US, for about £ 22m. It is integrated with Halma Centrack, which provides location services for health facilities.
Logistics firm Wincanton rose 2.4 per cent, or 9p, to 390p after profits rose 31 per cent to £ 25.1m in the six months to September. Revenue jumped 19 per cent to £ 690.3m, fueled by a boom in online deliveries. Interim dividend rose 40p to 4p per share.
Property investment firm Great Portland Estates has flagged its first-half net net worth (NAV) better than expected, helped by strong rental levels in its office properties. For the six months to September 30, the group’s NAV rose 2.2 percent to 796p per share, a 2 percent increase to its capital value of 2.5 billion pounds.
Shares rose 0.1 per cent, or 0.5p, to 747.5p.
Meanwhile, Seraphim, the world’s first listed fund focused on space technology, added 1.1 per cent or 1.4p to 125.4p after a strong first quarter listed in July. NAV rose 6p to 104p per share.
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