The net proceeds from the placement will fund the growth of the business, including the continued promotion of DCC’s Bitcoin and digital asset investment funds.
DigitalX Ltd (ASX:DCC) (OTCMKTS:DGGXF) has secured commitments from new US institutional investors for an A$8.8 million placement that will fund growth initiatives.
The company is engaged in the financial and regulatory aspects of the digital asset ecosystem through its fund management division and its new RegTech product, Drawbridge.
Proceeds from the placement will be used to accelerate the company’s growth, including the continued promotion of its bitcoin investment funds and digital assets and the rollout of Drawbridge for publicly traded companies.
“The right time to raise funds”
DigitalX Chief Executive Leigh Travers said, “With the tailwinds in the Bitcoin and digital asset market and the potential growth opportunity for the fund management division, the company believes the time is right to raise additional funds to accelerate the activity.
“This growth capital placement has been strongly supported by US institutions who are pleased given the performance of US equities in the bitcoin and digital asset sector.
“We believe these additional funds will allow us to accelerate a number of initiatives identified in our recent strategic review across the digital asset fund management business as well as for our Drawbridge-led RegTech business. “
Investment Details
US investment bank, HC Wainwright & Co, acted as exclusive placement agent for the capital increase.
The company plans to issue 97.9 million new fully paid ordinary shares at a price of A$0.09 per share, representing a 2% discount to the volume-weighted average price (VWAP) during of the last five trading days on the ASX.
The company will also issue to investors 48,981,582 warrants, exercisable at an exercise price of 10 cents each, representing approximately 111% of the issue price of the placement per new share.
