Letter to Investors

Berlin, Germany | 10/02/2020

Our goal is to be Europe's leading Blockchain-as-a-Service company.

We open with a bold mission statement purposely to set the tone not just for this letter but also for the year ahead. This ambitious statement embodies who we are as a team, what we expect of each other and what we expect of ourselves. In this letter we will be giving you a brief update on what we have accomplished over the last few months as we set the foundations upon which we will be pushing on towards our goals in 2020 and beyond.

Infrastructure Platform

From the minute Advanced Blockchain was established our goal was to develop the best blockchain infrastructure platform for business. We understood that the core issue in the industry was the general lack of quality of blockchain infrastructure on the market and not the lack of applications. Blockchain applications need a powerful and reliable infrastructure to function on top of if they are to fulfil their purpose.

With this in mind we have been meticulously researching and developing our core product, our peaq infrastructure. Through building a next-generation blockchain infrastructure in peaq we aim to be the go-to blockchain infrastructure backbone in Germany and Europe - drastically cutting costs, increasing efficiency and making entirely new revenue streams possible. In doing so we expect to positively shape and impact the way our clients and our clients' clients experience the digital world. We look forward to laying the foundations for entire industries while establishing new industry standards together with our clients.

We are currently in negotiations with our first system integrators. Until all our patents are filed we will continue to keep our IP confidential.

Platform Applications

The other end to our end-to-end Blockchain-as-a-Service offering is our platform applications. These applications will run on top of our peaq infrastructure platform. We are currently working on blockchain applications on two fronts.

We are excited to announce that our first in-house blockchain application is in testing phase and well on its way to becoming one of the first production-ready blockchain applications to provide real, tangible benefits to its users.

We are now open to partnerships and approaches from IoT companies who are concerned with access and permission rights management and are eager to innovate.

On the client front, we have the following updates:

Automotive Client

We have successfully developed the first part of the product with our major client from the automotive industry. We are now in talks regarding future steps. The name of our client will remain confidential for the time being.

Telecommunications Company

We are still in negotiations with the telecommunications company with which we signed an LOI last year. The integration of our peaq infrastructure is being discussed. We are working towards securing long-term licensing agreements.

Capital Increase

We have successfully completed our most recent financing round. Our capital increase was filled and oversubscribed. The raised capital will be used for expansion and growth. This will include making our products, such as peaq, more accessible to a wider range of clients via the development of licensing models in order to secure recurring revenues. It will also include building up a sales department as our first in-house products inch closer to completion, allowing us to begin selling blockchain products at scale.

We were also successful in onboarding strategic investors such as:

Michael Ganser
Former; Senior Vice President (SVP) of Cisco Central Europe, SVP of Cisco DACH, CEO & SVP of Cisco Germany and CEO & General Manager of Cisco Switzerland.

Herbert Leifker
Former Managing Director and Chief Commercial Officer of Unitymedia.

You can read more about our last funding round here.

Team

Our team has also grown substantially, but before introducing new team members we would like to take a minute to thank our entire team and especially our tech team - our Blockchain Dept., Back-End & Front-End Depts., Hardware & Embedded, DevOps, QA and Architecture teams - for their unwavering commitment and passion towards pushing this company, and all it will enable and create, forward.

We'd like to welcome our three most recent tech recruits, starting with Corneliu Vasiliu. Corneliu joined us from the Video Games Industry - where he was recognised as one of the top performers out of Ubisoft’s 16,000 employees. He has worked as Project Manager on some of the biggest computer games released over the past decade and has helped grow the Ubisoft Kiev studio from 25 people to 100 people.

We'd also like to welcome Jackson Palacios and Mike Lubinets. Jackson moved to Berlin all way from Medellin, Colombia to follow our vision. He's an accomplished Bilingual Systems Engineer with a Master of Science in Systems Engineering and over 8 years of experience as a Software Developer. Mike is a seasoned Back-End Developer and Systems Engineer. He previously worked on the core components of the Ethereum Classic blockchain. He's also co-founder of the Rust Russia community.

Miguel Santafe has been a part of the team for over a year and has recently been appointed Creative Director. The move represents our firm belief that great products must not just be expertly engineered and designed, they represent an experience which must also be expertly engineered and designed. On the design and experience front we cannot wish for a more capable person than Miguel.

Advisory & Supervisory Board

Over recent months we have intensified our onboarding and cooperation with strategic advisors. We recognise the potential in having seasoned experts help guide the company forward. Blockchain may be a new technology but it is not the first technology to be new. We understand that and realise the value in seeking advice from people who have successfully implemented new technologies.

Supervisory Board

Michael Ganser
Former; Senior Vice President (SVP) of Cisco Central Europe, SVP of Cisco DACH, CEO & SVP of Cisco Germany and CEO & General Manager of Cisco Switzerland.

'With their industrial blockchain solution, peaq, Advanced Blockchain is working at the most critical crossroads between technology and business. They are in a good position to solve complex business issues for companies in the European market. I’m very much looking forward to forming part of this exciting journey and joining this great team.’

You can read more about Michael Ganser joining our Supervisory Board here.

Advisory Board

Jan Wiechers
Partner at Rekall.ai, Former Brand Evangelist at Google, YouTube

You can read more about Jan Wiechers joining our Advisory Board here.

Product Advisor

Michael Jackson
Former Skype COO, Non-Exec Director at Volvo, AXA Insurance

'I can see them being of a similar size and success as Oracle in the future. There's a lot of interest in the world today for blockchain solutions and there certainly seems to be some applications where blockchain is exactly the right solution. As far as I can see, peaq is in a great place. It has got product and it seems to want to follow in that direction [Oracle's success]. I'm very happy to be involved with them and wish that we can do a good job, satisfying the needs of the enterprises.'

You can read more from our conversation with Michael Jackson here or watch the interview here.

We thank you for your trust in Advanced Blockchain AG and we look forward to a successful year.

Thank you,
The Advanced Blockchain Management Team

Advanced Blockchain AG is a German publicly listed Blockchain-as-a-Service company based in Berlin. We build next generation blockchain infrastructure and applications for the world's largest companies and we're the first blockchain company to be listed on the Xetra (Frankfurt) stock exchange.