DigitalX takes another step towards finalizing deal with Blockchain Global
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.