Blockchain company DigitalX has to reply to ASX query about share price rise

Maria Nikolova

ASX notes a change in the DigitalX share price from $0.063 at market close on October 20, 2017 to an intra-day price of $0.099 on October 25, 2017.

Blockchain-based solutions provider Digitalx Ltd (ASX:DCC) has seen its share price rise steeply over the past few days. The price movement has sparked a reaction from ASX, which sent a query to the company asking it to explain the reasons for the change in the DigitalX share price from $0.063 at market close on October 20, 2017 to an intra-day price of $0.099 on October 25, 2017.

The ASX query also noted an increase in the trading volume of DigitalX’s securities today which is significantly above the average for the company.

ASX asked if DigitalX is aware of any information concerning it that has not been announced to the market, which if known by some in the market, could explain the recent trading in its securities.

In its reply, DigitalX stated that it is not aware of any such information.

However, DigitalX emphasized the significant amount of recent media attention around initial coin offerings (ICOs) and that it continues to execute on its objective to provide ICO advisory services.

One example was provided in August, when DigitalX announced it had entered into an agreement with Bankera to provide it with consultancy services. DigitalX said then it will act as an advisor to Bankera’s initial coin offering (ICO), which is a part of the implementation of Bankera’s plan to build a digital bank for the Blockchain era. DigitalX will be providing a range of industry specific and traditional corporate advisory services plus additional marketing services to Bankera in exchange for fees.

In September, the company announced it has received the additional $4.05 million from Blockchain Global Limited (BGL) and other investors nominated by BGL. In addition, the company has converted the previous $300,000 loan received from BGL. The announcement followed that from June 7, 2017, when DigitalX said it had secured investment of approximately $4.35 million from Blockchain Global and associated investors. Blockchain Global agreed to invest the sum at 2.7 cents per share to acquire an interest of approximately 40% of DigitalX.

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