Smartlands Confirms Its Near-term Roadmap to Revenue Generation

With this article, we describe our activities over the last few months and present our token
holders and other interested parties with our short-term roadmap to revenue generation in both
Liechtenstein and Ukraine.

Ukraine

As announced earlier this year, Smartlands confirmed the “soft” launch of the beta version of our
asset tokenization platform in Ukraine. Since the launch, we have gathered together an
impressive list of real estate owners who intend to use the platform to tokenize partial stakes in
their real estate portfolios, giving investors the opportunity to enter the commercial and large
ticket real estate market as minority holders and receive income on the same terms as the
majority owners.

As with all public-facing investment offerings, it is necessary to ensure that the structure of the
business offering the investment opportunities is entirely compliant with the laws in the
jurisdiction in which they operate. To this effect, Smartlands appointed Quantum Attorneys to
advise us on all matters pertaining to the legal structure of our business in Ukraine. Quantum
Attorneys, you may recall, were the lead legal firm advising the Ukrainian government on the
national laws that relate to both the issue of a Central Bank Digital Currency (CBDC) and on
how to structure the legal environment that will apply to digital assets inside Ukraine.

Working with Quantum Attorneys, Smartlands put together our own corporate structure for the
Ukrainian division in such a manner that it would instantly be legally compliant once the relevant
laws have been passed by the Ukrainian parliament, known as the Rada.

For any business starting operations in a new country, it is generally a straightforward process
to make sure that the business plan is legally compliant with the existing laws at the time of
company formation. With the Smartlands asset tokenization platform, however, we are creating
a new company to operate in a legal environment that at the time had not been formalized by
the RADA. This then allowed Smartlands to approach only professional investors, high net
worth individuals (HNWIs), and other professionals such as family offices and advisors to
HNWIs. We have made contact with many such qualifying inventors over the past few months.
We have in place a large number of “soft” commitments from such investors on the various real
estate offerings that have been presented on the platform. However, in every case, the investors
and their advisors wanted to ensure that Smartlands was compliant with the relevant Ukrainian
laws before remitting funds.

The same also applied to the real estate portfolio owners whose properties we are in the
process of listing on the platform. So, while we have both sides of the transactions ready to go,
we need absolute confirmation of the legal environment that will apply to offer legal comfort to
both investors and the property owners, and this can only be guaranteed once the Rada has
passed the relevant laws and they have been signed into effect by the Ukrainian President.

We are pleased to report that on 29th July, the President of Ukraine signed into law a decree
that now allows the Ukrainian Central Bank, The National Bank of Ukraine, (NBU) to issue a
CBDC or digital hryvnia. The law also enables the NBU to set up regulatory structures for testing
payment services and other allied instruments based upon new and emerging technologies. It is
worth noting that the legislation requires the NBU to form a close collaboration with local
start-ups in the digital asset space to ensure that the end product of the e-hryvnia takes into
account the needs of the private sector. In a further positive for Smartlands, the NBU
announced earlier this year that it had chosen the Stellar blockchain network as the platform on
which it will build the hryvnia CBDC. So it is instantly compatible with all aspects of the
Smartlands platform immediately after it is launched.

In a further development, the Rada has under consideration a new law setting out the legal
status of crypto trading and crypto investments. This law will have the effect of creating parity
between decentralised finance businesses (such as Smartlands) and the more traditional form
of old-school banking. An important consideration of this new law is that it will legalise crypto
payments conducted through intermediaries, thus facilitating two-way protection for both
consumers and businesses in crypto to fiat currency transactions.

All of this is excellent news for us at Smartlands. It brings cryptocurrencies and investments
made into crypto-related businesses such as the Smartlands platform into the mainstream. It
gives the holders of crypto assets that have been created under the relevant law the same legal
protections as investments made using fiat currencies.

Following the official publication of the text of the new laws, we, at Smartlands, were able to
structure our Ukrainian operation to ensure that it is fully compliant. To this effect, we have
already opened our Ukrainian subsidiary as an LLC being a specialist vehicle that will shortly be
issued with a Ukrainian broking license making it legally allowed to offer investments to the
general public at large on the Smartlands platform with all investments accorded the same
privileges and protections as if they were made in fiat currency under the old-fashioned banking
system.

With the work we have put in place in carefully structuring the Ukrainian company and our
further activities in finding both investors and real estate owners to populate the platform,
Smartlands will be in pole position to maximise returns for token holders once the new law is
confirmed and signed into law by the President of Ukraine.

Smartlands remains fully prepared and ready to turn our “soft” commitments into the firm
business from both investors and commercial property owners at a moment’s notice. We
continue to meet with both asset owners and investors to ensure that there will be a large
selection of opportunities on the platform for investors under Ukraine’s brave new world of
crypto adoption.

Liechtenstein

In the crypto field, Liechtenstein has an entirely different set of circumstances to Ukraine. There
is a full suite of legislation relating to crypto activities and digital assets already in place. To date,
no company has created or used an asset tokenization platform under these laws, and
Smartlands intends to be the first.

It has been necessary for Smartlands to seek multiple legal opinions on the structure and
operation of the Liechtenstein subsidiary to ensure that we are operating fully in accordance
with the relevant parts of that country’s blockchain act. This is now largely complete, and we are
awaiting approval of the final version of the corporate structure and confirmation that everything
is ready to launch.

As part of the structure, it has been a requirement that we appoint a Liechtenstein citizen who is
cognizant of both the legal aspects of the Smartlands platform and who also has an
understanding of the digital asset marketplace. This person will act as a supervisory type board
member, and it is his job to oversee our compliance with all relevant legislation under
Liechtenstein Law. We are pleased to confirm we have found the right person for this position. In
order to ensure overall legal compliance with our operation in Liechtenstein, we have appointed
the law firm BWB Rechtsanwalte of Vaduz to advise us on an ongoing basis.

In our news release dated 16th April on our plans for Liechtenstein, we gave a guesstimate of 6
months for the entire process to be complete, in other words, by mid-October. As things look
now, we should be in a position to meet this forecast easily.

The operation of our platform in Liechtenstein in a manner fully compliant with that country’s
blockchain act will allow us to offer tokenized assets to a global investment audience. It will be a
major source of income for Smartlands across all asset classes, especially regarding large ticket
offerings.

Other news

We have not spent the past few months sitting idly by waiting for lawyers to do their stuff on our
behalf. Our team in Ukraine continues to seek out suitable asset owners for listings on the
platform and maintains an ongoing dialogue with investors.

We have also re-launched our updated and improved Smartlands wallet to reflect all the latest
developments in the Stellar protocol fully. The wallet also now boasts single sign-on functionality
and 2-factor authentication for the protection of the wallet owners. It is through the wallet that
the Smartlands staking system will operate, distributing 33% of all revenues earned by the
platform to qualifying SLT holders.

Smartlands has also strengthened its key management team in anticipation of
revenue-generating business starting on multiple fronts by appointing a Customer Success
Manager.

Smartlands Short Term Road Map

Milestone – Expected Date
Creation of Ukrainian LLC – Complete
Issuance of Ukrainian brokerage licence – Q4 2021
Start of full operations in Ukraine – Q4 2021
Start of first revenue generation in Ukraine – Q4 2021
Full operation of Liechtenstein subsidiary – October 2021
Start of first revenue generation in Liechtenstein – November 2021
The first payment of 33% revenue share to SLT holders – December 1st, 2021