DigitalX issues 1.89m shares following finalization of legal proceedings in ICO case

Maria Nikolova

DigitalX has today issued a total of 1,895,453 shares at a deemed issue price of $0.061551 per share.

Blockchain-based solutions provider and ICO adviser DigitalX Ltd (ASX:DCC) has just announced the issue of a total of 1,895,453 shares at a deemed issue price of $0.061551 per share. 

This happens less than a week after the company said it had finalised the legal proceedings, which related to an Originating Application and Statement of Claim filed by a group of parties relating to an investment made by those parties in an initial coin offering (ICO) to which the company was an advisor. Today’s share issue marks the first tranche pursuant to the settlement deed.

DigitalX explains that the Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A of the Act.

The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:

  • (a) the Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;
  • (b) as at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and
  • (c) as at the date of this notice, there is no information:

a. that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

b. that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of (i) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or (ii) the rights and liabilities attaching to the relevant Shares.

On May 7, 2019, the company said it entered into a settlement deed to provide full release from the applicant’s claims without any admission of liability by DigitalX. Further, DigitalX has released the parties from any and all claims.

DigitalX advises it will be making a cash payment of AU$250,000 within 2 business days and a further cash payment of AU$150,000 plus interest on July 1, 2019. The cash payments will be made out of the company’s existing cash reserves.

The Claim, as announced in September 2018, was for a combined amount of approximately US$1,833,077 plus damages. DigitalX has denied any and all wrongdoing.

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