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.

Read this next

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

Digital Assets

Zodia Custody and SBI Digital Asset Holdings launch JV for crypto asset custodian in Japan

“Zodia Custody is both proud and excited to be working with SBI DAH to help set up SBI Zodia Custody; the first tier 1 crypto asset custodian for institutions in Japan.”

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

<