DigitalX attracts new major shareholder

07/06/2017 - 15:24

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An Australian company operating in the bitcoin and blockchain space has committed to become a 40 per cent shareholder in software company DigitalX by way of a $4.35 million investment.

An Australian company operating in the bitcoin and blockchain space has committed to become a 40 per cent shareholder in software company DigitalX by way of a $4.35 million investment.

DigitalX said today it had entered into a subscription and converting loan agreement with Blockchain Global to invest $4.35 million in the company at 27 cents per share, representing a 28.5 per cent premium to DigitalX’s five-day volume-weighted average price.

Under the agreement, BGL has provided a $300,000 convertible loan through the bitcoin cryptocurrency to DigitalX, and has committed to subscribe for shares, convertible notes and options in the company for a further $4.05 million.

DigitalX welcomes BGL as an investor in the company, and appreciates the confidence it has shown in DigitalX's growth and understanding within the blockchain ecosystem,” DigitalX chief executive Leigh Travers said.

“Having just returned from Consensus, the biggest blockchain conference in the world, the growing support for blockchain, digital currency and decentralised organisations is unquestionable.

“With a stronger balance sheet and additional blockchain expertise, I am confident that we can deliver value for all shareholders going forward.”

As part of the investment, BGL will have the right to nominate two directors to DigitalX’s board.

Ironside Capital acted as corporate adviser and lead manager to the deal.

BGL provides bitcoin mining, software and consultancy services, having been involved in blockchain technology since 2014.

DigitalX shares surged on the news, closing 73.9 per cent higher to 4 cents each.

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