Blockchain Global Limited and associated investors have agreed to invest approximately $4.35 million at 2.7 cents a share.
DigitalX Ltd (ASX:DCC), a company for Blockchain-enhanced software solutions, continues to attract funding. Today, the company announced that it had secured investment of approximately $4.35 million from Blockchain Global and associated investors. Blockchain Global agrees to invest the sum at 2.7 cents per share to acquire an interest of circa 40% of DigitalX.
The investment represents a 28.5% premium on the volume-weighted average price (VWAP) of DigitalX’s shares over the past 5 days.
Under the terms of the agreement, DigitalX has received AUD 300,000 by way of a convertible loan in Bitcoin. This is the first such funding secured by a company listed on ASX. Blockchain Global will subscribe for or procure subscribers for shares, convertible notes and options in DigitalX for up to further AUD 4.05 million. BGL will also have the right to appoint two directors to the DCC board.
This is not the first time that DigitalX collaborates with Blockchain Global. In February 2017, DigitalX confirmed it was moving away from Bitcoin trading services and was instead focusing its operations to its payments application AirPocket. DigitalX has announced a deal with Blockchain Global Limited over the DigitalX Direct platform. The agreement stipulates that DigitalX will receive half of all revenues generated from customers introduced to Blockchain Global and their exchange service ACX.io.
Blockchain Group, formerly known as Bitcoin Group Limited, has been known for the efforts to float its shares on ASX.
After filing several prospectuses, having amended each one in tune with regulatory requirements, Bitcoin Group (which has been poised to list as “BCG”) shelved its plans for an IPO and ASX listings in March 2016. The decision was made after on March 4, 2016, ASX sent a letter to the company, referring to a report by Grant Thornton Australia over whether Bitcoin Group had sufficient working capital to reach its stated objectives. BCG explained back then that the Australian Securities & Investments Commission (ASIC) did not allow forecasts on the Bitcoin price to be used in a corporate working capital assessment. This was the reason for the results of the report having been rejected and the listing plans – abandoned.
In February 2015, ASIC issued a stop order prohibiting Bitcoin Group Limited from publishing any statements with relation to its intention to make an initial public offering of its shares until the lodgement of a prospectus. The regulatory concerns stemmed from publications by the company via a social media application ‘Wechat’ seeking expressions of interest from potential investors to subscribe for shares if there is a proposed listing on the ASX. The publications were made before Bitcoin Group Limited was registered as an Australian company by ASIC and before the filing of a formal disclosure document.