DigitalX takes another step towards finalizing deal with Blockchain Global

Maria Nikolova

Blockchain Global has advised that it is pleased with the results of completed due diligence investigations, and that the conditions related to an agreed use of funds budget and third-party approvals have also been satisfied.

Further to FinanceFeeds’ report from June 7, 2017, about Australian company for Blockchain-enhanced software solutions DigitalX Ltd (ASX:DCC) securing strategic investment from Blockchain Global, there has been an update on the deal today.

DigitalX said that it had received notification from Blockchain Global about the completion of due diligence investigations on DigitalX and that the results are satisfactory. This condition is now met. Also, Blockchain Global has also advised that the conditions related to an agreed use of funds budget and third-party approvals have been satisfied.

Currently, the outstanding conditions relate to approvals from the relevant regulators and from shareholders.

On June 7, 2017, DigitalX entered into a conditional agreement with Blockchain Global Limited pursuant to which Blockchain Global agreed to invest approximately $4.35 million at 2.7 cents a share to acquire an interest in approximately 40% of the company on a fully diluted basis, with the right to procure investors for 50% of its investment commitment.

Under the terms of the agreement, DigitalX has received AUD 300,000 by way of a convertible loan in Bitcoin. This is the first time such funding is secured by an ASX-listed company. Blockchain Global will subscribe for or procure subscribers for shares, convertible notes and options in DigitalX for up to further AUD 4.05 million. It will also have the right to appoint two directors to the DigitalX board.

DigitalX has collaborated with Blockchain Global before. In February 2017, DigitalX confirmed it was moving away from Bitcoin trading services and was instead focusing on its payments application AirPocket. DigitalX has announced a deal with Blockchain Global Limited over the DigitalX Direct platform. The agreement stipulated that DigitalX would receive half of all revenues generated from customers introduced to Blockchain Global and their exchange service ACX.io.

As a company whose business is related to digital currencies, Blockchain Global has welcomed the new taxation rules for bitcoin and its likes in Australia. From July 1, 2017, digital currency will be treated just like money for GST (Good and Services Tax) purposes. At present, consumers who use digital currencies have to bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.

Read this next

Executive Moves

Avelacom appoints Timothy Wong to run new Hong Kong office toward APAC expansion

Avelacom helps to achieve sub-millisecond speed of market data and order execution across both derivatives exchanges and crypto markets.

Executive Moves

XS.com hires Ahmed Negm, a popular market analyst on CNBC, Sky News, Bloomberg’s Asharq

“Ahmed’s expertise and passion for understanding the intricacies of the financial markets will be invaluable as we continue to grow our client base and expand into new jurisdictions.”

Institutional FX

ATFX uses blockchain to help clients verify IBs and vice versa

ATFX said it has been working on the IB verification project for a few months.

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”

Technology

XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”

<