The social media space was abuzz with reactions and remarks yesterday when a video surfaced about the embattled Nigerian crypto exchange Patricia. It was alleged in the footage, made by a user, that the crypto exchange had deserted its Lagos office address.
However, in an exclusive chat with Technext, Patricia CEO, Hanu Fejiro claimed that the company doesn’t have an office in Lagos. During the conversation, the CEO also confirmed the reports making rounds that the company has decided to convert users’ debts, reported to be in the region of N2 billion, into company shares.
According to him, the company runs a fully remote structure and the content making rounds is ‘mischievous.’
“Recall on the onset of the CBN regulation in 2021, we moved our headquarters to Vilnius, Lithuania. Our business model allows and we have invested in infrastructure to run a fully remote model with team members spread across continents. As it stands, we do not have a registered office in Nigeria,” the CEO said.
While this may be so, it is important to note that Patricia announced in July 2021 that it moved its headquarters to Estonia in Eastern Europe.
But one month later, in August 2021, it granted a grand tour of its Lekki office to the crew of Techpoint as part of the media platform’s Office Tours segment.
It is also important to note that the company’s Google review shows its address remains Number 2, SwissTrade Drive, Ikota, Lekki, Lagos.
This might be because having a physical address in Nigeria would boost customers’ confidence. The relocation and non-physical office claim, location in Nigeria makes the address listing misleading.
Whether the company has made a conscious effort to change this remains unknown.
On conversion of crypto holding to shares
Recall that Techpoint Africa reported earlier in the week that Patricia is now imploring customers to turn the company’s debts into company shares.
According to the report on Tuesday, Patricia gave a customer the option to convert their balance into Patricia shares. Quoting a recording shared by a customer, Abraham Nelson, the unnamed Patricia representative said:
“We have found investors but this is the only thing keeping us. This is the best we can do right now. It is most likely our last resort. We just need your cooperation.”
Hanu confirmed to Technext that this was indeed true and that the move is an integral component of the company’s strategy for fundraising and reorganizing its debts. He also said the idea was put forward by ‘numerous users’.
“In anticipation of our upcoming relaunch and in preparation for our fundraising initiative, we are affording our users the opportunity to transform their debt tokens into convertible notes at a favourable discount in Patricia. In fact, numerous users have previously approached us with this proposal, and we are now wholeheartedly embracing it,” he said.
He gave assurance that the shares transfer process would be managed by an SEC-licensed, third-party trustee which would ensure complete transparency.
He also clarified that all users’ funds have been converted to the Patricia debt Token (PUTX) automatically. At this point, Hanu explained, customers could decide to redeem their PUTX in cash or to redeem them to equity which is fully optional.
“For users who decide to redeem for cash, some would have their funds immediately while others will have their funds over time through a payment schedule. For those who decide to redeem for equity, of course, it means they become part owners of the company, Patricia.”
Probed further on why a customer would want to redeem their funds to equity and own a part of a company that many see as beleaguered, the CEO said it all comes down to perspectives and perception.
“If you have been a user and followed the growth of Patricia, you wouldn’t think it unappealing,” he said.
Asked to give us an idea of the number of customers who have so far found it appealing enough to convert their debts into equity, he replied: “We have more than a handful of users who have converted. It was actually the customers’ idea to start with. Unfortunately, we cannot share the numbers as of now.”
Read also: Seun Dania: “Why I invested in Patricia”
The backstory
According to footage posted by a TikTok user identified as @bunznahn404 on Wednesday, workers have deserted the building that houses the Patricia office in Lagos.
Related post: $PTK is a debt token, not a stablecoin -Patricia clears the air
According to what could be heard in the video, the user confirmed from the security guard that no Patricia worker had shown up in the visibly empty apartment in weeks/months.
Technext visited the registered office in Lekki, Lagos on Thursday and discovered that the office was truly locked. The security guards disclosed to us that the Patricia team moved away from the building months ago.
Reacting to the video making rounds, Hanu Fejiro says:
“The Content is misleading and mischievous. We run a fully remote structure, the office in the video is an innovation hub set up (we announced in 2022), to offer free working spaces to Devs and Crypto enthusiasts, Patricia does not actively operate from that office.”
About Glover
Also, the TikTok user warned other users to get money out of Glover, another financial company founded by Hanu Fejiro.
To this end, we asked Patricia about the growing concerns that Glover may go the way of Patricia since Hanu Fejiro founded both companies. However, the founder claims that Glover is a separate entity and that its own team, independent of Patricia.
“I am not actively running the helm of affairs. Glover got its first CEO in January 2022. I am one of the investors in the company right now.” – Hanu said.
What is next for Patricia?
It is now over six months since customers last withdrew funds from Patricia’s exchange and frustrations over the issue continue to mount.
Customers proceeded to show their agitations all over social media and elsewhere, exemplified by the users who went to the company’s physical address to confirm Patricia’s absence.
Happenings like these continue to erode trust and transparency in the crypto ecosystem and one can only hope the issues are resolved and customer funds are released.
In the midst of all of these, the company is planning a relaunch. Part of this relaunch is the launch of its app; Patricia Plus.
In clearer terms, the Patricia boss said the Plus app is in a beta testing phase and invites have been sent to a few customers to experience the app before launch. According to him, when it is launched, customers who already have the debt token would finally have the option to convert their assets to cash or redeem them to equity (shares).
“Stay tuned for further announcements in this vein, as we will be sharing more details shortly.” – he added.
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