- Software company DigitalX (DCC) has secured firm commitments for an $8.8 million placement
- More than 97.6 million new fully paid ordinary shares will be issued to U.S. institutional investors at 9 cents
- This price represents a 2 per cent discount to the five-day volume-weighted average price
- DigitalX will use the funds to grow its business, promote its Bitcoin and digital investment funds and rollout its new RegTech product
- DigitalX is up 2.13 per cent on the market and shares are trading at 9.6 cents
Software company DigitalX (DCC) has secured firm commitments for an $8.8 million placement.
All up, 97,963,164 new fully paid ordinary shares will be issued to U.S. institutional investors at 9 cents, representing a 2 per cent discount to the five-day volume-weighted average price.
DigitalX will also issue 48,981,582 warrants, exercisable at 10 cents.
H.C. Wainwright & Co acted as the exclusive placement agent and will receive a 7 per cent cash fee based on the funds raised, as well as 6,857,421 warrants.
Shares are expected to settle on March 8 and begin trading on the ASX the same day.
DigitalX will use the funds to grow its business, promote its Bitcoin and digital investment funds and roll out its new RegTech product.
“With tailwinds in the Bitcoin and digital asset market and the potential growth opportunity for the funds management division, the company believes it is an appropriate time to raise additional funds to accelerate the business,” Executive Director Leigh Travers said.
“We believe that these additional funds will allow us to expedite a number of initiatives identified in our recent strategic review across the digital assets funds management business as well as for our RegTech business led by Drawbridge,” he added.
DigitalX is up 2.13 per cent on the market and shares are trading at 9.6 cents at 11:33 am AEDT.